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  • OM-4.2 OM-4.2 Succession planning

    • OM-4.2.1

      Succession planning is an essential precautionary measure for a bank if its leadership stability — and hence ultimately its financial stability — is to be protected. Succession planning is especially critical for smaller institutions, where management teams tend to be smaller and possibly reliant on a few key individuals.

    • OM-4.2.2

      The Agency will generally monitor banks' succession plans through the work of its on-site examiners. In order to supplement these efforts, the Agency requires its locally incorporated banks to submit to the Agency a description of their succession plans for their senior management team. Locally incorporated banks must summarise who is covered by their succession plan, and confirm that the plan has been reviewed and endorsed at Board level.

    • OM-4.2.3

      The information required in paragraph OM-4.2.2 should be submitted to the Agency by the end of each calendar year. It should be addressed to the Executive Director, Banking Supervision.