An editor of a banking magazine interviewed me recently on the topic of community bank directors’ changing role, and though not all the issues we touched on were cut-and-dried, one thing was clear: Directors have to be more active.

The days are gone when a board could consist of inside directors: the accountants and lawyers who earn their living from serving the bank, and the friends of the CEO, all of whom would go along with anything he proposed. One reason is that now, any director who mindlessly approves all the CEO’s ideas is running the risk of a shareholder lawsuit.

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