DEFINITIONS

1
DEFINITIONS

• Community Bank
• Covers cities, towns
• Sells to consumers, businesses
• Branches
• Regional Bank
• Covers states, entire region
• Typically grew by acquisition
• Sells to consumers, businesses, other banks
• Wider range of products

Sweet Spot 300 million 1 billion
2
PROFILE

• Environment
• Cisco Vanguard routers
• Microsoft Exchange for email
• Novell Netware
• Budgets
• Growing because of expanding compliance
  requirements
• Easier to justify cap-ex expenditures on calendar
  year

Typical configuration includes Backbone router
connecting branches via Frame, VPN, or T1
3
REGULATORY REQUIREMENTS

• 4 Types of Bank Exams
• Federal Deposit Insurance Commission (FDIC)
• State
• Internal
• Third-party

Always dealing with an audit
4
GRAMM-LEACH-BLILEY

• Gramm-Leach-Bliley (GLB)
• Effective 7/01 banks still grappling with
  compliance
• Mandates that a bank take all necessary steps to
  protect private information about its customers
• Includes all actions to protect customer data
• Banks must perform risk assessment
• Must create an Information Security Program
• New compliance issues continuing to emerge

5
THE LINGO

• Safety and Soundness Exam
• Type of exam the FDIC conducts
• Measures financial soundness and safety of
  depositor funds
• Includes Information Systems and eBanking
  sections
• Extends beyond technology to physical protection
  of assets

6
COMPLIANCE

• All examiners give marks
• Highest mark for IT is outstanding
• Penalties include
• MOU Memo of Understanding
• Temporary shutdown of services
• Cease and desist
• Hugh financial repercussions