Bank Director Program

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Course Titles and Descriptions

Bank Secrecy Act for Bank Directors

The Bank Secrecy Act (BSA) is one of the main tools the Federal Government uses to combat financial crimes and terrorist activity. The BSA requires banks to assist in preventing crime by enacting sound policies regarding reporting, recordkeeping, and monitoring of potentially criminal activity.

BSA/AML requirements grant senior management and the Board of Directors primary responsibility for ensuring that the bank has a comprehensive and effective BSA/AML compliance program and oversight framework that is reasonable designed to ensure compliance. Rev–Jan. 2025. Course length ≈ 33 minutes.

Learning Objectives:

  • Implement a BSA/AML program at your bank based on the five pillars

  • Know the basic technical requirements of the Bank Secrecy Act

  • Understand the challenges banks may face if senior management and the board are not involved in creating a successful BSA/AML program

  • Keep abreast of emerging trends in the BSA/AML world

Course Outline:

  • Introduction

  • BSA/AML Program

  • BSA Requirements

  • Challenges and Findings

  • Hot Topics

  • Enforcement Actions

Bank Security for Directors

The security function's primary duty is to develop and administer a written Security Program for the institution. The Board of Directors must approve this Program and its corresponding policies. This course discusses the laws, rules, and regulations that affect the security function. Rev–Jan. 2025. Course ≈ 22 minutes.

Learning Objectives:

  • Describe how the relationship between the security function and the Board of Directors should work

  • Identify the issues the institution's Security Program must address

  • Identify security regulations that affect the institution

Course Outline:

  • Introduction

  • Board of Directors

  • Security Program

  • Bank Protection Act

  • Bank Secrecy Act

Board Committees

Board committees are a very important part of effective corporate governance. Board committees allow for a division of labor and enable directors with the requisite expertise to handle matters that require detailed review or in-depth consideration.

This course provides information on the importance of board committees, the requirements of a committee charter, and the different types of committees that exist within a bank’s structure. Rev. 12/19. Course length ≈ 13 minutes.

Learning Objectives

  • Understand the importance of having board committees.
  • Create a board committee charter
  • Know the different types of board committees that a bank may have

Course Outline

  • Importance of Committees
  • Written Committee Charter Elements
  • Types of Committees

Board Governance

The idea of corporate governance simply means having an internal governance structure that meets the needs of your organization in whatever form that is. One can really view corporate governance as nothing other than doing the right things and providing a roadmap for what bank directors should do.

This course discusses an overview of ways to create a sound and comprehensive board of directors, the legal duties required of directors, the risks bank directors face, and succession planning considerations. Rev. 12/19. Course length ≈ 18 minutes.

Learning Objectives

  • Create a board structure for the organization
  • Comply with the legal duties of board members
  • Understand the risks of being a director
  • Consider various way to plan for board member succession

Course Outline

  • Board Structure (members, size, executive session, internal governance)
  • Legal Duties
  • Succession Planning
  • Other Miscellaneous

CAMELS

The Uniform Financial Institution Rating System (UFIRS), more commonly known as CAMELS rating, is an internal rating system used by the banking regulators for assessing the soundness of financial institutions on a uniform basis.

The system also helps identify institutions requiring closer supervisory attention. This course describes each of the six components of the CAMELS rating and the principal evaluation factors that relate to each component. Rev. 12/18. Course length ≈ 18 minutes.

Learning Objectives

  • Know what comprises the component and composite ratings
  • Define what each of the components for the CAMELS ratings are
  • Understand the assessment factors for each component

Course Outline

  • Ratings
  • Capital Adequacy
  • Asset Quality
  • Management
  • Earnings
  • Liquidity
  • Sensitivity to Market Risks
  • Exam Report

Community Reinvestment Act for Directors

The Community Reinvestment Act requires regulated financial institutions to demonstrate:

  1. Their deposit facilities serve the convenience and needs of the communities in which they are chartered to do business;
  2. The convenience and needs of the community include the need for credit services as well as deposit services;
  3. A continuing and affirmative obligation to help meet the credit needs of the communities they serve.

In October 2023 the CRA was overhauled and the new requirements that banks must follow are effective January 1, 2026. This course discusses the new rules. Rev. Jan 2025. Course length ≈ 30 minutes.

Learning Objectives:

  • Understand how a bank must determine its CRA assessment areas

  • Know which tests your bank is examined under based on its asset size

  • Have a general understanding of what the various performance tests include

  • State what is inside the bank’s CRA Public File

Course Outline:

  • Introduction

  • Coverage

  • Assessment Area

  • Assessing Performance

  • Small Banks

  • Intermediate Banks

  • Large Banks

  • Other Options

  • Public File & Notification

Compliance Laws & Regulations

Laws and regulations govern many aspects of banking. It is important bank directors have a general understanding of each of the regulations in order to establish policies and monitor its operations according to the law.

This course gives you a brief overview of many of the banking laws and regulations. Rev. 10/24. Course length ≈ 47 minutes.

Learning Objectives

  • Have a general understanding of the of the various federal regulations
  • Ensure your bank is complying with the laws and regulations through policy creation and monitoring

Course Outline

  • Deposit Regulations A-Z
  • Lending Regulations A-Z
  • Other Laws

Compliance Program Management for Directors

Managing compliance is an integral part of any bank’s business strategy. The Board of Directors and management must recognize the scope and implications of laws and regulations that apply to their bank and establish a compliance management system. This course will walk you through managing a successful compliance management system. Rev–Dec. 2018. Course length ≈ 14 minutes.

Learning Objectives:

  • Help to create, manage, and monitor the bank’s Compliance Management System

  • Ensure your community bank has a successful compliance examination

Course Outline:

  • What is a CMS?

  • Board Oversight

  • Compliance Program

  • Compliance Audit & Examinations

Cyber & Information Security for Directors

Building and operating an information security program at your organization can be challenging.

This course provides your board of directors, senior management, and information security committee with the information to understand oversight responsibilities and make informed decisions to protect the bank and its customers. Rev. 01/25. Course length ≈ 25 minutes.

Learning Objectives

  • Understand the board of directors’, senior management’s, and information security committee’s roles and responsibilities for cybersecurity implementation and monitoring
  • Explain the basics of risk-based decision-making
  • Utilize resources available to ensure your bank is compliant and secure

Course Outline

  • Roles and Responsibilities
  • The Information Security Program
  • Programs and Resources

Ethics for Bank Directors

Business ethics is a serious subject for executives, managers, and front-line employees. All bank employees are expected to make good decisions every day based on the organization's values and contemporary standards in business ethics.

Given the increased scrutiny boards are subject to, this is especially true for bank directors. This module will help bank directors understand the importance of recognizing an ethical dilemma and then acting accordingly. It will also assist directors in making sound decisions based on the principles of business ethics. Rev 12/20. Course length ≈ 22 minutes.

Learning Objectives:

  • Explain the importance of business ethics
  • Identify the core values of banking
  • Outline a process for ethical decision making
  • Discuss some ethical problems banks can be confronted with

Course Outline:

  • The Importance of Ethics
  • Ethics and bankers
  • Ethical decision making
  • Common Ethical Problems in Banking

Executive Compensation Practices for Bank Directors

Being a bank director carries a lot of responsibility. Bank directors select management, oversee business performance, ensure compliance with the latest regulations, and make sure the bank is meeting the needs of the community.

Because of this, bank directors need to be compensated. In this course we will look at how and why bank directors are compensated, and how bank directors can help their bank set compensation practices based on the principles of safety and soundness. Rev 12/16. Course length ≈ 22 minutes.

Learning Objectives

  • Explain why bank directors are compensated
  • Discuss the various modes of compensation for bank directors
  • Identify the parties that determine compensation levels
  • Discuss contemporary issues in bank director compensation

Course Outline

  • Why are Bank Directors Compensated?
  • How are Bank Directors Compensated?
  • Who Determines Compensation Levels?
  • Contemporary Issues in Bank Director Compensation
  • Incentive Based Compensation

Fair Lending for Bank Directors

Understanding fair lending is important to managing credit and compliance risk as well as reputation risk. Every director must be familiar with the fair lending regulations and the implications of noncompliance.

In this course we provide a brief overview of the fair lending laws and the types of lending discrimination. We will also discuss actions a bank should take to avoid fair lending laws and provide information on the current state of fair lending in the banking industry. Rev. 01/25. Course length ≈ 22 minutes.

Learning Objectives:

  • Understand the laws that require fair lending
  • Know the types of lending discrimination
  • Help develop and monitor a bank’s fair lending program to mitigate risk
  • Identify the highest areas of risk

Course Outline:

  • Fair Lending Laws
  • Types of Lending Discrimination
  • Risk & Monitoring
  • Current State of Fair Lending

Foundations of Risk Management

The basic concept of enterprise risk management has been applied, more or less, in several industries for well over a decade. The changing regulatory environment, economic turmoil, and growing complexity of products, tools, and risks has, among other influences, helped to launch the practice of enterprise risk management into the financial services area.

In this respect ERM—in the world of banks and financial institutions—is very much in its early development, though much progress has been made. This course provides an overview of the components of a successful enterprise risk management program. Rev. 12/20. Course length ≈ 30 minutes.

Learning Objectives:

  • Understand the components of the ERM Framework
  • Define the types of risks that exist within the bank to create an ERM Program
  • Acknowledge the benefits and challenges that come with creating a successful ERM Program

Course Outline:

  • Introduction to ERM
  • ERM Framework
  • Risks
  • Benefits and Challenges of ERM
  • Conclusion

GLBA for Directors

Advances in information technology have enabled companies to collect, compile, analyze and deliver data around the world much more quickly and cheaply than ever before. These technological advances have also brought new challenges to protecting information privacy.

The information in this course is based on the key privacy concepts, terms, rules and requirements of the Gramm-Leach-Bliley Act (GLBA). It provides an overview of the fundamentals on privacy regarding the use of personal information that is obtained by a financial institution from consumers and customers. Rev–Jan. 2025. Course length ≈ 20 minutes.

Learning Objectives:

  • Explain the Gramm-Leach-Bliley Act (GLBA) and its key purpose

  • Understand an organization’s obligations under the privacy regulations

  • Learn how an organization’s Privacy Notice is properly distributed in the course of customer interaction

  • Accurately address basic questions and issues regarding privacy

Course Outline:

  • Introduction

  • The GLBA Rules

  • Protecting Customer Information

Harassment & Discrimination in the Workplace 

This new training module contains two courses:  

Business Essentials: Harassment in the Workplace – Learn about harassment in the workplace with real-life scenarios. Improve your understanding of the definition of harassment, protected characteristics, and sexual harassment.  

Business Essentials: Discrimination in the Workplace – Learn about discrimination in the workplace with real-life scenarios. Improve your understanding of the definition of discrimination and what constitutes unlawful discrimination and retaliation. The courses include video and audio. Course length ≈ 12 minutes total.

Red Flags Identity Theft Training for Directors

The Fair Credit Reporting Act (FCRA), amended by the Fair and Accurate Credit Transaction Act (FACTA), contains several provisions designed to help combat identity theft. Included in the provisions is the requirement for financial institutions to develop an identity theft prevention program. This course will discuss the components of a compliant program and various red flags for identifying identity theft. Rev. June 2019. Course length ≈ 30 minutes.

Learning Objectives

  • Explain the necessary components of a Red Flags Identity Theft Prevention Program

  • Identify the red flag categories and types

Course Outline

  • Introduction

  • Definitions

  • The Program

  • Red Flags

  • Other Requirements

Regulation E: Electronic Funds for Bank Directors

The Electronic Funds Transfer Act aims to protect the rights of consumers when they engage in electronic funds transfer (EFT) transactions. Regulation E establishes rights, liabilities and responsibilities of consumers who use electronic fund transfer services and of financial institutions that offer these services.

In this course we will cover the general requirements for complying with Regulation E, error resolution and liability, and exams. Rev. 12/20. Course length ≈ 20 minutes.

Learning Objectives:

  • Understand the general requirements of Regulation E
  • Review that your bank protocols regarding electronic fund transfer are compliant
  • Know what financial liability customers have regarding unauthorized transactions

Course Outline:

  • Coverage
  • Disclosures
  • Error Resolution & Liability
  • Examinations

Regulation O for Directors

Regulation O governs extensions of credit made by a bank to an executive officer, director, or principal shareholder. It also applies to extensions of credit made by a bank to a political or campaign committee that benefits or is controlled by such a person. This course provides an overview of Regulation O. This course is intended for lending personnel. Rev–Jan. 2025. Course length ≈ 15 minutes.

Learning Objectives:

  • Discuss the reason Regulation O exists

  • Ensure recordkeeping policies and procedures at your bank are compliant with the stipulations detailed in Regulation O

  • Define the parties subject to Regulation O at your bank

  • Define the limitations of extension of credit to those parties Regulation O stipulates

Course Outline:

  • Introduction

  • Overview of Regulation O

  • Types of Credit

  • Insiders

  • Conclusion

Role and Responsibilities of Bank Directors

A bank’s board of directors sets the tone for the bank’s business and oversees the management of the bank’s activities. Those who elect the directors have confidence in the board’s abilities to guide the bank with reasonable care.

In turn, all directors must consider the bank’s interests before their own. This course helps directors understand what it means to be a bank director and the responsibilities the board of directors must ensure a safe and sound bank. Rev. 12/17. Course length ≈ 12 minutes

Learning Objectives

  • Know what qualification a bank should consider when choosing a board member
  • Understand the role and responsibilities of a bank director
  • Understand which bank policies should be reviewed by the board of directors
  • Know what to review in various reports to monitor the bank’s operations

Course Outline

  • Board Members and Composition
  • Roles and Responsibilities of Bank Directors
  • Monitoring Bank Activity

Small Business Lending (1071) for Directors 

The Small Business Lending Rule (Section 1071 of the Dodd Frank Act) requires financial institutions collect and report to the CFPB certain data regarding applications for credit for women-owned, minority-owned, and small businesses.

Learning Objectives:

  • Know which credit applications require data collection and reporting

  • Determine how the bank is going to comply with the firewall rules

  • Have a general understanding of what steps need to be taken to comply with the new requirements

Course Outline:

  • Introduction

  • Covered Financial Institutions and Effective Dates

  • Covered Transactions

  • Covered Applications

  • Data Points

  • Firewall

  • Other Requirements

This course discusses the Board of Directors responsibility to ensure that credit risk is managed and controlled properly on an integrated bank-wide basis.

A director must understand the bank’s credit risk profile and its credit culture. Board members need to recognize their role in reviewing and approving the banks Credit Policy as well as set the parameters for the concentration limits to maintain the risk level in the credit portfolio.

To accomplish this, they need a thorough knowledge of the bank’s lending portfolio composition as well as the key reports that will provide them with a way to measure the portfolio against the expectations that are set in the policy. Rev–Jan. 2024.  Course length ≈ 23 minutes.

Learning Objectives

  • Understand a director’s responsibility as it relates to credit risk within your community bank.

  • Set your bank's core credit priorities.

  • Maintain an effective credit culture in the bank.

  • Recognize the importance of your credit policy.

  • Develop the proper concentration limits to manage credit risk.

  • Effectively monitor your credit portfolio to avoid surprises.

  • Course Outline:

  • Introduction

  • Setting Your Bank Credit Priorities

  • Credit Culture

  • Policies and Concentration Management

  • Measuring and Monitoring

Understanding UDAAP

Unfair, deceptive, or abusive acts and practices (UDAAPs) can cause significant financial injury to consumers, erode consumer confidence, and undermine the financial marketplace. The Dodd-Frank Act makes it illegal for any provider of consumer financial products or services or a service provider to engage in any unfair, deceptive or abusive act or practice.

This includes banks. Unfair, deceptive, or abusive acts and practices (UDAAPs) can cause financial injury to consumers, harm consumer confidence, and undermine the financial marketplace. This course will introduce you to UDAAP and show you how to create a UDAAP compliance program. Rev–Jan. 2025. Course length ≈ 33 minutes.

Learning Objectives:

  • Define UDAAP

  • Explain what an unfair, deceptive or abusive act or practice is

  • Identify acts and practices that prompt CFPB to take UDAAP enforcement action

  • Create and maintain a UDAAP compliance program

Course Outline:

  • Introduction

  • What is UDAAP?

  • Violations & Risks

  • Creating a UDAAP Compliance Program

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