An effective corporate governance framework is essential to a banking organization's overall safety and soundness. To that end, traditional examination activities have always sought to ensure that boards of directors have established effective corporate governance frameworks for their organizations.
This presentation was given at the IBSC Director's Workshop in Columbia, SC on September 16, 2004.
Sarbanes/Oxley was enacted on July 30, 2002 to enhance the accounting and corporate governance practices of public companies. The SEC is charged with implementing provisions of the Sarbanes-Oxley Act.
While traditional examination activities have been sufficient to assess management oversight, recent high profile failures in corporate governance and the subsequent passage of the Sarbanes Oxley Act of 2002 (SOX) prompted the Fifth Federal Reserve District's Department of Supervision, Regulation & Credit (Department) to collect and assess the range of corporate governance practices currently existing at District institutions.