Generations Bancorp NY, Inc. (NASDAQ:GBNY), a federally chartered savings institution, has entered into a significant regulatory agreement with its primary regulator, the Office of the Comptroller of the Currency (OCC). The agreement, effective as of Friday, marks a commitment by the bank to enhance its oversight and risk management practices.
Under the terms of the Agreement, Generations Bank, a wholly owned subsidiary of Generations Bancorp, is required to establish a Compliance Committee. This committee will be responsible for monitoring the bank's adherence to the Agreement's terms and reporting its progress to the Board of Directors and the OCC.
The bank is also tasked with developing a comprehensive board oversight and corporate governance program. This program aims to strengthen the overall direction and governance of the bank. Additionally, Generations Bank must prepare a strategic plan that spans at least three years, with regular evaluations of the bank's performance against the plan to be reviewed by the Board and submitted to the OCC.
Other critical components of the Agreement include the creation of a written liquidity risk management program, which must encompass a contingency funding plan, and the development of an interest rate risk management program. These programs are designed to identify, measure, monitor, and control the financial risks the bank faces.
The Agreement, detailed in an 8-K filing with the Securities and Exchange Commission (SEC) on Monday, reflects the bank's commitment to compliance and prudent management in the wake of regulatory scrutiny. The full text of the Agreement can be found as an exhibit to the SEC filing.
Generations Bancorp, headquartered in Seneca Falls, New York, is now focused on implementing these measures to ensure compliance and to safeguard the interests of its stakeholders. The information is based on a press release statement.
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