Department of Financial Institutions
Kentucky Bank Regulator Earns Reaccreditation

   FRANKFORT, Ky. – (June 25, 2012) – Today the Department of Financial Institutions (DFI) announced it has earned its fourth reaccreditation from the Conference of State Bank Supervisors (CSBS). DFI has been consistently accredited – and recognized as operating a capable and professional regulatory program – since 1992.

   “As the agency that regulates the safety and soundness of state-chartered banks, we also hold ourselves to a very high operating standard,” said DFI Commissioner Charles Vice. “We are gratified to earn this achievement. Reaccreditation validates that the department meets the highest standards regarding regulatory oversight of the banking industries.”

   The goal of this CSBS accreditation program is to encourage state banking departments to enhance their capability to promote safe and sound banking with a minimum of regulatory burden and cost, and to assist them in achieving that capability. The accreditation program involves a comprehensive review of the critical elements that assure a state regulator’s ability to supervise the industry.

   The reaccreditation covers a five-year period. The exact score is confidential.

   The CSBS Performance Standards Committee voted for the accreditation, basing their vote on the reports of the Accreditation Review Team and Audit Team. The review was conducted primarily on-site at DFI’s Frankfort office over three days in May.

   The report and scores are based on documentary evidence, such as a random sample of examination reports and other files. The CSBS Review Team conducted a thorough review of DFI’s self-evaluation questionnaire, interviewed key management personnel and a cross section of examiners and reviewed the products of supervision. The team reviewed several areas: administration and finances, personnel policies and practices, training programs, examination policies and practices, supervisory procedures, and statutory powers.

   For more information on DFI’s Bank Branch, visit http://kfi.ky.gov/Pages/depository.aspx. For more information on CSBS’ accreditation program, visit http://www.csbs.org/development/accreditation/Pages/default.aspx.

   DFI, which traces its origin to the Banking Act of 1912, is an agency in the Public Protection Cabinet. For 100 years it has supervised the financial services industry by examining, chartering, licensing and registering various financial institutions, securities firms and professionals operating in Kentucky. DFI’s mission is to serve Kentucky residents and protect their financial interests by maintaining a stable financial industry, continuing effective and efficient regulatory oversight, promoting consumer confidence, and encouraging economic opportunities.

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