1 Commonwealth of Massachusetts Division of Banks 2005 Performance Survey

2 Quick Survey Facts Surveys were sent via mail to 269 financial institutions (banks and credit unions) Surveys were sent via mail to 269 financial institutions (banks and credit unions) 29% response rate (79 responses) 29% response rate (79 responses) 41 banks 41 banks 32 credit unions 32 credit unions 6 remained anonymous 6 remained anonymous

3 Summary of Agency Performance

4 Summary for Safety & Soundness Examinations

5 Summary for Consumer Compliance Examinations

6 Summary for Community Reinvestment Act Examinations

7 Summary for Legal Processes

8 Major Responses: Major Responses: Improve coordination with federal regulators, particularly in the areas of Compliance and CRA examinations, to reduce examination-related regulatory burden and maximize the cycle between reviews Improve coordination with federal regulators, particularly in the areas of Compliance and CRA examinations, to reduce examination-related regulatory burden and maximize the cycle between reviews Reduce examination duration by increasing the off-site portion of examinations, increasing the use of technology and pre-planning, and using a risk-focused approach when possible Reduce examination duration by increasing the off-site portion of examinations, increasing the use of technology and pre-planning, and using a risk-focused approach when possible Lengthen time between examinations for well-run institutions Lengthen time between examinations for well-run institutions Continue to modernize the existing legislative framework and increase parity powers for banks and credit unions to remain competitive with federal and out-of-state banking authorities Continue to modernize the existing legislative framework and increase parity powers for banks and credit unions to remain competitive with federal and out-of-state banking authorities Streamline application procedures to eliminate redundancy and improve operational efficiency Streamline application procedures to eliminate redundancy and improve operational efficiency What steps could be taken to reduce unnecessary regulatory burden?

9 What steps can be taken to improve the examination process (i.e. Safety & Soundness, Consumer Compliance, and/or Community Reinvestment Act)? Major Responses: Major Responses: Improve communication with management by keeping them informed throughout the entire examination process Improve communication with management by keeping them informed throughout the entire examination process Reduce examination duration by increasing the off-site portion of examinations, increasing the use of technology and pre-planning, and using a risk-focused approach when possible Reduce examination duration by increasing the off-site portion of examinations, increasing the use of technology and pre-planning, and using a risk-focused approach when possible Improve coordination with federal regulators and conduct more joint examinations, particularly in the areas of Compliance and CRA examinations, to reduce examination-related regulatory burden and maximize the cycle between reviews Improve coordination with federal regulators and conduct more joint examinations, particularly in the areas of Compliance and CRA examinations, to reduce examination-related regulatory burden and maximize the cycle between reviews Ensure examiners have adequate access to training given the dynamic environment Ensure examiners have adequate access to training given the dynamic environment Develop a secure website to exchange sensitive information Develop a secure website to exchange sensitive information

10 Thank you again for your participation. If you have any questions, please contact Assistant Chief Director Mona Ahmad at or