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.






RELATED TERMS
  1. Compliance Officer

    An employee whose responsibilities include ensuring that the ...
  2. Compliance Program

    The internal programs and policy decisions made by a company ...
  3. Compliance Registered Options Principal ...

    A supervisory and compliance position that FINRA required of ...
  4. Bank Examination

    An evaluation of the safety and soundness of a bank. The primary ...
  5. Accounting Control

    Methods and procedures that are implemented by a firm to help ...
  6. Privately Owned

    A company that is not publicly traded on a securities exchange. ...
Related Articles
  1. Managing Wealth

    Compliance Officer: Job Description and Average Salary

    Learn what being a compliance officer entails, including job description, required education and training, skills and national average salary.
  2. Investing

    Get A Job In Compliance

    If you're a stickler for rules, this could be a promising career path for you.
  3. Managing Wealth

    Common Interview Questions for Compliance Officers

    Prepare to ace your compliance officer interview. Learn how to answer some commonly asked interview questions and what you need to know to come out ahead.
  4. Managing Wealth

    Asset Manager Ethics: Risk Management and Compliance

    Managers should create a compliance and risk function that is integral to the investment function in order to plan for the increasingly more common market dislocations that occur in the global ...
  5. Financial Advisor

    More Reasons for Advisors to Be Wary of the SEC

    It looks like the SEC is expanding its oversight regarding RIA compliance in the coming months. Here's why RIAs should expect more federal check-ins.
  6. Trading

    Is Your FX Broker In Compliance?

    Sharon Pendleton, director of compliance, National Futures Association (NFA), discusses some of the new rules that now govern forex brokers or dealers.
  7. Financial Advisor

    Is Greater Oversight of RIAs Coming?

    RIAs may be entering an era of greater oversight by the Securities and Exchange Commission. Here's why.
  8. Financial Advisor

    How the New Fiduciary Rule Will Hit Broker-Dealers

    While the new rules are likely to impact all financial advisors, it is expected that those in the brokerage world will be hit the hardest. Here's why.
  9. Managing Wealth

    Common Interview Questions for Accounting Research Managers

    Learn how to ace an interview for an accounting research manager position, including anticipating the questions and formulating winning answers.
  10. Financial Advisor

    Politics and Your Clients: Don’t Go There

    When it comes to politics, advisors need to be careful where they tread. Here’s how to successfully negotiate these choppy waters.
RELATED FAQS
  1. What's the average salary of a compliance officer?

    Learn about compliance officers, the locations and industries in which compliance officers work and how much they earn on ... Read Answer >>
  2. How significantly does government regulation impact the chemicals sector?

    Study the impact of stringent federal regulations on the chemicals sector and learn how industries are impacted by the cost ... Read Answer >>
  3. What is the maximum amount of time that can elapse between CFA examinations?

    According to the CFA Institute, a candidate can take as much time as necessary between examinations. Therefore, if you passed ... Read Answer >>
  4. Is a SE 401K covered by FDIC?

    Is it considered the same as an IRA? ... Read Answer >>
  5. Are all bank accounts insured by the FDIC?

    The Federal Deposit Insurance Corporation (FDIC) is an independent agency of the U.S. government that protects you against ... Read Answer >>
  6. What barriers to entry exist in the financial services sector?

    Dive into the complicated and controversial relationship between the maintenance of stability in the financial services sector ... Read Answer >>
Hot Definitions
  1. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  2. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
  3. Front Running

    The unethical practice of a broker trading an equity based on information from the analyst department before his or her clients ...
  4. After-Hours Trading - AHT

    Trading after regular trading hours on the major exchanges. The increasing popularity of electronic communication networks ...
  5. Omnibus Account

    An account between two futures merchants (brokers). It involves the transaction of individual accounts which are combined ...
  6. Weighted Average Life - WAL

    The average number of years for which each dollar of unpaid principal on a loan or mortgage remains outstanding. Once calculated, ...
Trading Center