Don’t procrastinate on prepping for FDICIA requirements
I can remember way back when I was in college. I had a big project that required lots of research, a lengthy paper and of course the much-dreaded presentation to the class.
Even until today I get nervous before any presentation but back in college I oddly dealt with this nervousness with the worst habit - procrastination.
As a habitual procrastinator I, of course, waited until the last minute to begin my research and start putting my paper and presentation together. A week before my project was due my professor notified me that the project had been extended an additional 2 weeks. What a huge sigh of relief!
As most of us would do, in that moment, I swore that wouldn’t wait until the last minute ever again but guess what happened 2 weeks later ... “Ms. Procrastinator” showed her ugly face again.
I think this same scenario plays out in our professional lives quite often. The most recent significant relief has come from the FDIC’s Interim Final ruling allowing banks to use their 12/31/19 asset sizes to determine whether or not they have to be FDICIA compliant.
While this provides relief for many community banks, we should not lose sight that the inevitable will still occur as the bank continues to grow. The magnitude of the time and resources that it will take for the banks, approaching the $1 billion asset threshold, to prepare to be FDICIA compliant has not decreased.
While banks have been granted more time, bank management should be realistic about their growth expectations for the future. While a huge sigh of relief is warranted, we don’t want to relive our college years and continue the vicious cycle of not being prepared for the inevitable.
I may have been on my own in preparing for my big presentation in college, but you don’t have to bear the entire burden of preparing for the requirements of FDICIA.
Let Wipfli perform the heavy lifting for you. Wipfli has the tools, resources and expertise to assist with all your FDICIA readiness and compliance needs.
