The Federal Reserve Bank of Chicago ordered Omnibanc Corp., River Rouge, Mich., to review its internal controls.
In a Jan. 8 order released last week, the holding company's board agreed to report back to the Chicago Fed by April 8.
The agreement was prompted by the fact that Omnibank, a subsidiary, nearly quadrupled its asset size, to $80 million, during 1996, according to its chairman, William T. Johnson.
"The Fed just wants us to slow down and make sure our internal controls are adequate for a bank of this size," he said.
Separately, Cuyamaca Bank of Santee, Calif., entered into an agreement with the Federal Reserve Bank of San Francisco to restore its financial health.
Under the Jan. 22 order released last week, the bank agreed not to pay dividends without the Fed's permission. In addition, it must submit a business plan by March 24 outlining performance goals for the next two years.