Baf 110 Notes Ch 1
BAF 110 Chapter 1
Banker’s primary responsibility- professionally represent bank’s interest through interactions with customers, bank employees, vendors, and community members. Need good judgment, address requests promptly, follow procedures, establish relationships that meets customer’s needs and bank goals. (p.3)
Code of conduct- (aka code of ethics) bank policies approved by board of directors that serve as guidelines for corporate governance and individual conduct. (Examples: receiving gifts from customers, serving on public boards, taking outside jobs, reporting suspicious activities). (p.3)
Sarbanes- Oxley Act (2002)- federal law intended to improve governance of public corporations by holding boards of directors, management, and auditors to high standards of conduct and accountability. (p.3)
Normally covered in Code of Conduct: * Personal conduct: no dishonest or fraudulent activity tolerated * Conflict of interest: obligated to act in best interests of the bank, avoiding situations where relationships or interests might appear to influence judgment. * Accepting gifts: cannot accept money or gifts of significant value that might cause suspicion of influence. * Outside activities: encourages to participate in activities, but must keep bank interests first in mind. * Confidentiality: avoid unauthorized use or release, following laws on sharing information with affiliates. * Purchasing defaulted property: should not purchase property that was repossessed or foreclosed by bank or affiliate due to conflict or interest * Notification of violations: obligated to report suspected wrongdoing, ensured protection from recrimination die to reporting under whistleblower provisions through the Sarbanes-Oxley Act and Federal Deposit Insurance Act. (p.4)
Affiliate- organizations sharing some aspect of ownership and control (example: interlocking directorates, stock ownership, parent company) (p.4)
Whistleblower- employee who
Banker’s primary responsibility- professionally represent bank’s interest through interactions with customers, bank employees, vendors, and community members. Need good judgment, address requests promptly, follow procedures, establish relationships that meets customer’s needs and bank goals. (p.3)
Code of conduct- (aka code of ethics) bank policies approved by board of directors that serve as guidelines for corporate governance and individual conduct. (Examples: receiving gifts from customers, serving on public boards, taking outside jobs, reporting suspicious activities). (p.3)
Sarbanes- Oxley Act (2002)- federal law intended to improve governance of public corporations by holding boards of directors, management, and auditors to high standards of conduct and accountability. (p.3)
Normally covered in Code of Conduct: * Personal conduct: no dishonest or fraudulent activity tolerated * Conflict of interest: obligated to act in best interests of the bank, avoiding situations where relationships or interests might appear to influence judgment. * Accepting gifts: cannot accept money or gifts of significant value that might cause suspicion of influence. * Outside activities: encourages to participate in activities, but must keep bank interests first in mind. * Confidentiality: avoid unauthorized use or release, following laws on sharing information with affiliates. * Purchasing defaulted property: should not purchase property that was repossessed or foreclosed by bank or affiliate due to conflict or interest * Notification of violations: obligated to report suspected wrongdoing, ensured protection from recrimination die to reporting under whistleblower provisions through the Sarbanes-Oxley Act and Federal Deposit Insurance Act. (p.4)
Affiliate- organizations sharing some aspect of ownership and control (example: interlocking directorates, stock ownership, parent company) (p.4)
Whistleblower- employee who