Dictionary of Banking Terms: compliance examination
compliance examination
periodic bank examination by a federal regulatory agency to ensure compliance with consumer protection regulations, such as the Community Reinvestment Act, the Equal Credit Opportunity Act, or the truth in lending act. Financial institutions are required by law to issue reports at regular intervals, for example, an annual statement of mortgage lending in the lender's market area. Compliance exams are intended to uncover any violations of consumer protection regulations so that remedial action can be taken.
