Board Essentials Module 5: Board Membership Basics

The bank’s board of directors has ultimate responsibility for managing and directing the bank. Although the board is permitted to assign specific operational functions to bank officers, their responsibility for the bank’s management and control cannot be delegated. The board is responsible for appointing qualified persons as officers and for evaluating the officers’ management performance. The bank’s officers report directly to the board and must be approved annually. Other major board responsibilities include:

Moreover, board members must adhere to high standards of ethics and confidentiality which require them to avoid conflicts of interest and self-serving practices. This program will explain directors’ compulsory legal responsibilities.