In late March, the Federal Deposit Insurance Corporation (FDIC) made significant updates to its Risk Management Manual of Examination Policies. Notably, these revisions were implemented in Section 3.2, which focuses on Loans.

Section 3.2 now outlines essential safe and sound lending principles that banks should take into consideration when managing the risks associated with leveraged lending. Additionally, the guidance provided in this section has been revised to reflect recent changes in accounting standards, ensuring that the policies remain relevant and effective in the current financial landscape.

The updated RMS Manual can be found here.

Adam Witmer

Adam Witmer is a speaker, author, and founder of the Compliance Cohort. Adam has taught hundreds of seminars and training sessions to thousands of bankers throughout the United States and teaches on all areas of regulatory compliance. Adam has written five e-books that he never published, hit a grizzly bear while driving in a National Park, and is an award winning photographer and musician (though he no longer takes photos nor plays any instruments). In his spare time, Adam can be found kayaking on the lake, doing taekwondo with his kids, working on his (project) house, or spending time with his family.

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