INTEREST RATE RISK POLICY. (1) Within sixty (60) days, the Board shall adopt, implement, and thereafter ensure Bank adherence to a written interest rate risk policy. In formulating this policy, the Board shall refer to the “Interest Rate Risk” booklet of the Comptroller’s Handbook. The policy shall provide for a coordinated interest rate risk strategy and, at a minimum, address:
(a) the establishment of adequate management reports on which to base sound interest rate risk management decisions;
(b) establishment and guidance of the Bank’s strategic direction and tolerance for interest rate risk;
(c) implementation of effective tools to measure and monitor the Bank’s performance and overall interest rate risk profile;
(d) employment of competent personnel to manage interest rate risk;
(e) prudent limits on the nature and amount of interest rate risk that can be taken; and,
(f) periodic review of the Bank's adherence to the policy.
(2) Upon adoption, a copy of the written policy shall be forwarded to the ADC for review.
INTEREST RATE RISK POLICY. (1) Within ninety (90) days, the Board shall revise its interest rate risk policy. Within that ninety (90) day period the Board will adopt, implement, and thereafter ensure Bank adherence to the written interest rate risk policy. In formulating this policy, the Board shall refer to the Interest Rate Risk booklet, L-IRR, of the Comptroller’s Handbook. The policy shall provide for a coordinated interest rate risk strategy and, at a minimum, address:
(a) the establishment of adequate management reports on which to base sound interest rate risk management decisions;
(b) establishment and guidance of the Bank’s strategic direction and tolerance for interest rate risk;
(c) implementation of effective tools to measure and monitor the Bank’s performance and overall interest rate risk profile;
(d) prudent limits on the nature and amount of interest rate risk that can be taken; and
(e) periodic review of the Bank’s adherence to the policy.
(2) Upon adoption, a copy of the written policy shall be forwarded to the Assistant Deputy Comptroller for review.
(3) The Board shall ensure that the Bank has processes, personnel, and control systems to ensure implementation of and adherence to the policy developed pursuant to this Article.
INTEREST RATE RISK POLICY. (1) Within 60 days, the Board shall adopt, implement, and thereafter ensure Bank adherence to a written interest rate risk policy. In formulating this policy, the Board or its delegees shall refer to the Interest Rate Risk booklet, L-IRR, of the Comptroller’s Handbook. The policy shall provide for a coordinated interest rate risk strategy and, at a minimum, address:
(a) the establishment of adequate management reports on which to base sound interest rate risk management decisions;
(b) establishment and guidance of the Bank’s strategic direction and tolerance for interest rate risk;
(c) implementation of effective tools to measure and monitor the Bank’s performance and overall interest rate risk profile;
(d) prudent limits on the nature and amount of interest rate risk that can be taken; and
(e) periodic review of the Bank's adherence to the policy.
(2) Upon adoption, a copy of the written policy shall be forwarded to the Assistant Deputy Comptroller for review.
INTEREST RATE RISK POLICY. (1) Within sixty (60) days, the Board shall revise, adopt, implement, and thereafter ensure Bank adherence to its written interest rate risk policy. In formulating this policy, the Board shall refer to the Interest Rate Risk booklet, L-IRR, of the Comptroller’s Handbook. The policy shall provide for a coordinated interest rate risk strategy and, at a minimum, address:
(a) the establishment of adequate management reports on which to base sound interest rate risk management decisions;
(b) establishment and guidance of the Bank’s strategic direction and tolerance for interest rate risk;
(c) implementation of effective tools to measure and monitor the Bank’s performance and overall interest rate risk profile;
(d) prudent limits on the nature and amount of interest rate risk that can be taken;
(e) limits based on rate shock analyses for net interest income, net income, and the economic value of equity;
(f) guidelines based on gap ratios for monitoring on a monthly basis; and
(g) periodic review of the Bank's adherence to the policy.
(2) Upon adoption, a copy of the written policy shall be forwarded to the Assistant Deputy Comptroller for review.
(3) The Board shall ensure that the Bank has processes, personnel, and control systems to ensure implementation of and adherence to the policy developed pursuant to this Article.
INTEREST RATE RISK POLICY. (1) Within ninety (90) days, the Board shall adopt, implement, and thereafter ensure Bank adherence to a written interest rate risk policy. In formulating this policy, the Board shall refer to the Interest Rate Risk booklet, L-IRR, of the Comptroller’s Handbook. The policy shall provide for a coordinated interest rate risk strategy and, at a minimum, address:
(a) the establishment of adequate management reports on which to base sound interest rate risk management decisions;
(b) implementation of effective tools to measure and monitor the Bank’s performance and overall interest rate risk profile;
(c) prudent limits on the nature and amount of interest rate risk that can be taken; and
(d) periodic review of the Bank’s adherence to the policy.
(2) Upon adoption, a copy of the written policy shall be forwarded to the Assistant Deputy Comptroller for review.
(3) The Board shall ensure that the Bank has processes, personnel, and control systems to ensure implementation of and adherence to the policy developed pursuant to this Article.
INTEREST RATE RISK POLICY. (1) Within ninety (90) days of the date of this Agreement, the Board shall adopt, implement, and thereafter ensure Bank adherence to a written interest rate risk program that shall include:
(a) the implementation of an accurate, realistic interest rate risk model that is flexible to grow with the Bank’s potential strategic changes;
(b) training to ensure that senior management understands, documents, periodically reviews and adjusts as needed, assumptions used in the Bank’s interest rate risk model;
(c) training or the addition of knowledgeable staff in this area;
(d) the establishment of reasonable limits on interest rate risk; and
(e) an independent validation of the interest rate risk model on an at least an annual basis.
(2) The Board shall submit a copy of the revised program required by this Article to the Assistant Deputy Comptroller for a prior written determination of no supervisory objection.
INTEREST RATE RISK POLICY. (1) Within ninety (90) days, the Board shall adopt, implement, and thereafter ensure Bank adherence to a written interest rate risk policy. In formulating this policy, the Board shall refer to the Interest Rate Risk booklet, L-IRR, of the Comptroller’s Handbook. The policy shall provide for a coordinated interest rate risk strategy and, at a minimum, address:
(a) the establishment of adequate management reports on which to base sound interest rate risk management decisions;
(b) establishment and guidance of the Bank’s strategic direction and tolerance for interest rate risk;
(c) implementation of effective tools to measure and monitor the Bank’s performance and overall interest rate risk profile;
(d) designation of personnel responsible for managing interest rate risk; and
(e) periodic review of the Bank's adherence to the policy.
(2) The Board shall ensure that the Bank has processes, personnel, and control systems to ensure implementation of and adherence to the policy developed pursuant to this Article.
(3) Upon adoption, a copy of the written policy shall be forwarded to the Assistant Deputy Comptroller.
INTEREST RATE RISK POLICY. Within ninety (90) days, the Board shall adopt, implement, and thereafter ensure Bank adherence to a written interest rate risk policy. In formulating this policy, the Board shall refer to the Interest Rate Risk booklet, L-IRR, of the Comptroller's Handbook. The policy shall provide for a coordinated interest rate risk strategy and, at a minimum, address:
INTEREST RATE RISK POLICY. (1) Within ninety (90) days, the Board shall adopt, implement, and thereafter ensure Bank adherence to written policies regarding interest rate risk model validation and interest rate risk limits. In formulating this policy, the Board shall refer to the “Interest Rate Risk” booklet of the Comptroller’s Handbook and OCC Bulletin 2000-16, Risk Modeling—Model Validation. The policy shall provide for, but not be limited to:
(a) ensuring the IRR model is independently back-tested in adherence with OCC Bulletin 2000-16 on an annual basis of annual results, at minimum;
(b) prudent limits on the nature and amount of interest rate risk that can be taken; and
(c) periodic review of the Bank's adherence to the policy.
(2) Upon adoption, a copy of the written policy shall be forwarded to the Assistant Deputy Comptroller for review.
INTEREST RATE RISK POLICY. ( 1 ) Within ninety (90) days, the Board shall adopt, implement, and thereafter ensure Bank adherence to a written interest rate risk policy. In formulating this policy, the Board shall refer to the Interest Rate Risk booklet, L-IRR, of the Comptroller’s Handbook. The policy shall provide for a coordinated interest rate risk strategy and, at a minimum, address:
(a) the establishment of adequate management reports on which to base sound interest rate risk management decisions;
(b) establishment and guidance of the Bank’s strategic direction and tolerance for interest rate risk;
(c) implementation of effective tools to measure and monitor the Bank’s performance and overall interest rate risk profile;
(d) prudent limits on the nature and amount of interest rate risk that can be taken; and
(e) periodic review of the Bank's adherence to the policy.
