With stable economic conditions, many community and local banks are experiencing a period of steady growth.
As they approach a milestone in total assets, these growing banks encounter additional opportunities – but they also face new risks and regulatory expectations.
In some instances, boards and executive teams might find the added pressures and increased supervisory efforts and may choose to restrain growth when they see the milestone approaching. Regardless of whether they choose such a strategy, management should begin surveying the wide variety of new requirements/compliances well in advance so that they can make an informed strategic decision and equip themselves to manage the increased compliance and risk management challenges they will face if they choose to continue their growth.
Such growth invariably give rise to individual borrowers beyond risk. Within the bank high quality internal control system to avoid slippage which may allow borrowing beyond acceptable limit.
Reference: Crossing the Threshold: 5 Things Banks Should Do as They Approach $1 Billion in Assets, https://www.crowe.com/insights/5-things-banks-should-do-approach-billion-assets by By Jaideep S.Chadha and Richard C. Kloch, Jr., CPA, Crowe USA