Addressing these matters will only become more difficult if additional companies are permitted to acquire ILCs and operate under a different supervisory and regulatory regime than the owners of other insured banks. Let me discuss these points in more detail and comment on how these matters would be addressed under H.R. 698, the Industrial Bank Holding Company Act of 2007, as introduced.
Thus, in the application of risk-focused supervision in the United States, our examiners verify the adequacy of the banking organization’s risk management systems, including whether they have an appropriate degree of transaction testing. One aspect of sound risk management that did not change during the 1990s is the importance of sound corporate governance.