Enterprise Risk · Credit Risk · Market Risk · Operational Risk · Regulatory Compliance · Securities Lending

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INFOGRAPHIC:Emerging Trends and Critical Issues in

Community Banking

SPECIAL REPORT:EMERGING TRENDS AND CRITICAL ISSUES IN COMMUNITY BANKS

KEY FINDINGS

In the spring of 2015, The Risk Management Association (RMA) surveyed community bankers across the United States to identify the trends and issues in risk management affecting community banks.

Survey respondents cited the following as the most important areas of risk in today’s current banking environment:

To download the full report, visit http://landing.rmahq.org/specialreport.

• 76% of respondents indicated that their institution plans to increase commercial and industrial (C&I) lending in the next 24 months.

• 72% of respondents indiciated that their institution plans to increase owner-occupied commercial real estate lending in the next 24 months.

• Strategic planning (32%), demand (21%), and market conditions (20%) were the biggest drivers of change.

Regulatory compliance risk

Cybersecurity

35%

79%

77%

70%

32%

21%

IT risk

Stress testing

Interest rate risk

Risk measurement and evaluation

The most often cited aspect of Enterprise Risk Management to be implemented are:

Overall, 76% of respondents believe their bank was fairly assessed by their examiner.

Generally, 77% percent of respondents believe their exam team was competent and professional.

31% of respondents were concerned about board members’ ability to keep up with regulatory changes.

56% of respondents said that they have plans to participate in mergers and acquisitions—either as an acquirer (48%) or seller (8%)—within the next two years.Generally, respondents believe that

examiners lack understanding of community banking.

LENDING AND SERVICE PRODUCTS

Enterprise Risk · Credit Risk · Market Risk · Operational Risk · Regulatory Compliance · Securities Lending

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Critical Issues in Community Banking”

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