Tech-forward Cross River Bank reached a consent agreement with the Federal Deposit Insurance Corp. in March following a cease-and-desist order from a standard review in 2021 regarding “unsafe and unsound banking practices related to its compliance with applicable fair lending laws,” according to the consent agreement, which was made public at the end of April.
“We had identified areas for improvement prior to the examination and the examination identified others,” a Cross River Bank spokesperson told Bank Automation News. “Since that time, we proactively made significant enhancements to our fair lending and other programs including investing in technology and personnel. At this time many of the enhancements have been completed or will be completed in the coming months.”
The Fort Lee, N.J.-based bank is among several banks that have fallen under regulatory scrutiny as the FDIC admitted its own failure to properly manage Silicon Valley Bank for several years, according to last week’s review of SVB’s management.
As the Fed steps up to regulate banks, Cross River Chief Executive Gilles Gade said in a statement: “These times provide us with a golden opportunity to continue to collaborate with our partners, regulators and peers for regulatory modernization. This will ensure we have a level playing field and open responsible financial services to the world.”
In the consent agreement, Cross River did not admit or deny the accusations but did consent to the issuance of the citation, according to the consent agreement.
As part of the order, the bank’s board must increase supervision and conduct an initial risk assessment of its credit product while meeting the identified timeline markers provided by the Fed, according to the agreement.
