Bank Director quoted Venable partner Ralph Sharpe in an August 24, 2012 article offering suggestions to bank directors in how to maintain good relationships with regulators.
Commenting on the steps bank boards should take to maintain good relationships with regulators, Sharpe said, “Transparency, honesty and timeliness are essential; never hide or sugarcoat bad news. Provide realistic projections—better to understate and over-perform. Be engaged; welcome opportunities to meet with examiners—with or without management, and in and out of board meetings. Ask questions, and listen to the answers. If you disagree, do so respectfully.” Sharpe also suggested that boards “Stay informed and keep up with regulatory developments,” and “learn the business of your bank. Know the difference between being a director instead of an investor.”