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Summary:

As part of its Community Banking Initiative and Technical Assistance Video Program, the �౦��Ϸ���� is announcing the release of an updated video on community bank corporate governance. The video is designed to assist community bank directors and officers in developing a sound corporate governance framework.

Statement of Applicability to Institutions with Total Assets Under $1 Billion: This Financial Institution Letter applies to all �౦��Ϸ����-supervised financial institutions.

Highlights:

• The video discusses the importance of a strong corporate governance program and the link between effective corporate governance and the ability of community banks to remain profitable, competitive, and resilient despite changing conditions.
• The video highlights some key elements to consider in developing a strong corporate governance program – understanding the bank's risk profile; establishing an appropriate risk appetite; obtaining and retaining qualified management; creating a dynamic strategic plan; developing policies and monitoring implementation; and staying informed.
• The video also addresses director roles and responsibilities, �౦��Ϸ���� information sources, and concerns raised by the industry regarding corporate governance.
• The video is available for viewing on the �౦��Ϸ����'s website at /regulations/resources/director/virtual/governance.html .
• Alternatively, �౦��Ϸ����-insured institutions may download the video through �౦��Ϸ����connect by contacting their �౦��Ϸ����connect coordinator.

Distribution:

• �౦��Ϸ����-Supervised Institutions

Suggested Routing:

• Chief Executive Officer / Chief Operating Officer

Paper copies may be obtained through the �౦��Ϸ����'s Public Information Center, 3501 Fairfax Drive, E-1002, Arlington, VA 22226 (1-877-275-3342 or 703-562-2200).