Financial derivatives.

CFR · 2024-01-01 · US · Title 12

(a) (b) (c) (2) Before a savings association may engage in any transaction involving a financial derivative, your board of directors must establish written policies and procedures governing authorized financial derivatives. The board of directors should review applicable guidance issued by the OCC on establishing a sound risk management program. (3) The board of directors must periodically review: (i) Compliance with the policies and procedures established under paragraph (c)(2) of this section; and (ii) The adequacy of these policies and procedures to ensure that they continue to be appropriate to the nature and scope of the savings association's operations and existing market conditions. (4) The board of directors must ensure that management establishes an adequate system of internal controls for transactions involving financial derivatives. (d) (2) Management must ensure that financial derivatives activities are conducted in a safe and sound manner and should review applicable guidance issued by the OCC on implementing a sound risk management program. (e)

official document · source cfr-2024 · id 12:§ 163.172