Deficiencies in internal controls, risk management and more have led to an enforcement action against an Illinois bank and its holding company by the Federal Reserve, the agency said Thursday.
According to the Fed, Iuka State Bank and its holding company Iuka Bancshares, Inc., both of Salem Ill., are subject to the enforcement action. The bank and holding company have signed an agreement with the federal regulator and the state agency, the Illinois Department of Financial and Professional Regulation (IDFPR).
According to the Fed, an exam on May 27 by the regulators “identified certain deficiencies at the Bank related to internal controls, credit risk management, lending and credit administration, capital, and liquidity and funds management.” The exam also found shortcomings in the bank’s risk management and compliance with federal anti-money laundering and Bank Secrecy Act (AML/BSA), the Fed said.
In addition to requirements that the bank tighten its internal controls, risk management and AML/BSA program, among other things, the bank must develop and submit to the regulators a capital plan within 60 days that outlines how it will maintain sufficient capital.
Federal Reserve Board issues enforcement action with Iuka Bancshares, Inc. and The Iuka State Bank
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