Regulators clamp down on Chicago bank [Chicago Tribune]
(Chicago Tribune (IL) Via Acquire Media NewsEdge) Sept. 20--National Republic Bank of Chicago, the area's biggest minority bank and an active lender to the U.S. lodging industry, has agreed to make a number of changes to its business to comply with a request from regulators, including maintaining certain capital levels and improving corporate governance.
The Aug. 31 consent order with the U.S. Office of the Comptroller of the Currency comes three years after the $1.13 billion-asset bank was ordered to reduce its reliance on brokered deposits, which can be more costly for a bank, and to diversify the type of loans that it makes.
National Republic Bank of Chicago is one of 11 minority banks in the Chicago area and the largest by asset size, according to Federal Deposit Insurance Corp. records. It's classified as an Asian or Pacific Islander American bank.
The bank had no immediate comment.
Under terms of the consent order, National Republic Bank of Chicago must also institute an annual credit review program for larger business customers, name a person to identify problem loans, get current appraisals on collateral for its real estate loans, hire an auditor to verify the accuracy of its books, improve the management of its information technology, and make sure that it's adhering to the Bank Secrecy Act, which establishes recordkeeping and reporting requirements for banks.
The bank's main office is at 1201 W. Harrison St. and it has a branch at 2615 W. Devon. It has earned $7 million this year, up slightly from the same period last year. But 13 percent of its loans are seriously delinquent, compared with less than 3 percent at Illinois banks and thrifts overall.
The bank must set up a compliance committee consisting of at least three directors, of which at least two can't be employees, former employees or controlling shareholders, the document said.
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