Our bank has a video system that is not backed up. Thats the first issue we have. My questions are: If the system goes down and we loose our film/pictures are we in violation of any regulation and is there a retention on keeping the video?

Here is a recent discussion on video retention. This thread includes links to other discussions as well.

You could also review part of Reg H here. That will give you background on the Reg - however you will also want to review your banks own Security Policy as video retention may be covered there.

Don't forget to review your state laws, also.

I am told that this is digital. Can this be backed up?

Folks:

As a practical matter, regulations require that every institution develop means for assisting law enforcement agencies in identifying, apprehending and prosecuting offenders. If your camera system fails to capture and retain images in a manner that helps the cops, they likely won't work your cases.