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#860595 - 11/26/07 08:51 PM policy/procedures
parr04 Offline
Gold Star
Joined: Aug 2004
Posts: 377
oklahoma
Recent audit found several violations of bank lending procedures. Management responded by saying as long as bank policy was not violated the procedures violations did not matter.

I was under the impression that procedure violations were as bad or worse than policy violations.

Please advise.

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Audit
#860600 - 11/26/07 08:54 PM Re: policy/procedures parr04
RR Sarah Offline
Diamond Poster
RR Sarah
Joined: Mar 2004
Posts: 2,479
Up North
Well, on a very basic level, what is the point of having procedures if they aren't going to be followed? And, why are the procedures not following what the policy intends? Basic questions that would need answers, in my opinion.
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Sometimes you have to burn a few bridges to keep the crazies from following you.

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#860645 - 11/26/07 09:33 PM Re: policy/procedures RR Sarah
FloBear Offline
Gold Star
Joined: Aug 2007
Posts: 273
Oklahoma
Policy says: This is what we are going to do.

Procedure says: This is how we will do it.

Violating one should also violate the other.

If you aren't going to do it, don't put it in writing.

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#860757 - 11/26/07 10:57 PM Re: policy/procedures FloBear
trail hiker Offline
Gold Star
Joined: Jul 2007
Posts: 436
I know for Fair Lending it is the actual practice that defines if you are in compliance. If your policy says one thing but your practice is to do something else it is the practice the examiners use. Makes sense that it applies to other areas of the loan policy besides Fair Lending. In reality, your practice actually dictates what your policy is. Your policy cannot stand up to scrutiny if it isn't practiced.

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