Commonwealth of Massachusetts Division of Banks

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Commonwealth of Massachusetts Division of Banks

• 2005 Performance Survey

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Quick Survey Facts

• Surveys were sent via mail to 269 financial
  institutions (banks and credit unions)
• 29 response rate (79 responses)
• 41 banks
• 32 credit unions
• 6 remained anonymous

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Summary of Agency Performance
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Summary for Safety Soundness Examinations
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Summary for Consumer Compliance Examinations
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Summary for Community Reinvestment Act
Examinations
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Summary for Legal Processes
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What steps could be taken to reduce unnecessary
regulatory burden?

• Major Responses
• Improve coordination with federal regulators,
  particularly in the areas of Compliance and CRA
  examinations, to reduce examination-related
  regulatory burden and maximize the cycle between
  reviews
• Reduce examination duration by increasing the
  off-site portion of examinations, increasing the
  use of technology and pre-planning, and using a
  risk-focused approach when possible
• Lengthen time between examinations for well-run
  institutions
• Continue to modernize the existing legislative
  framework and increase parity powers for banks
  and credit unions to remain competitive with
  federal and out-of-state banking authorities
• Streamline application procedures to eliminate
  redundancy and improve operational efficiency

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What steps can be taken to improve the
examination process (i.e. Safety Soundness,
Consumer Compliance, and/or Community
Reinvestment Act)?

• Major Responses
• Improve communication with management by keeping
  them informed throughout the entire examination
  process
• Reduce examination duration by increasing the
  off-site portion of examinations, increasing the
  use of technology and pre-planning, and using a
  risk-focused approach when possible
• Improve coordination with federal regulators and
  conduct more joint examinations, particularly in
  the areas of Compliance and CRA examinations, to
  reduce examination-related regulatory burden and
  maximize the cycle between reviews
• Ensure examiners have adequate access to training
  given the dynamic environment
• Develop a secure website to exchange sensitive
  information

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Thank you again for your participation. If
you have any questions, please contact Assistant
Chief Director Mona Ahmad at 617-956-1530 or
mona.ahmad_at_state.ma.us