Compliance Examination


DEFINITION of 'Compliance Examination'

A periodic examination of banks to make sure banks are operating in compliance with consumer protection laws, fair lending statutes and the Community Reinvestment Act. Compliance examinations are typically focused on operational areas that pose the biggest compliance risks, and focuses on the procedures the institutions have in place
to ensure compliance with regulations.

BREAKING DOWN 'Compliance Examination'

The compliance examination is one of three types of oversight activities carried out by the Federal Deposit Insurance Corporation (FDIC). Other activities include visitations and investigations. Visitations are usually conducted to review compliance for newly-chartered institutions and to review the progress on actions taken to correct previous infractions. Investigations can be launched if problems are brought to the attention of the FDIC.

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  5. Community Reinvestment Act - CRA

    An act of Congress enacted in 1977 with the intention of encouraging ...
  6. Loan

    The act of giving money, property or other material goods to ...
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