Regulators are calling on a Virginia bank to develop survival plans to shore up the bank's financial condition, according to an enforcement action released Tuesday.
Virginia Business Bank in Richmond agreed to submit written plans to the Federal Reserve Board and the Virginia Bureau of Financial Institutions detailing how its board plans to enhance oversight of the bank while also retooling its operations.
According to the agreement, the board must detail, within 30 days, how bank executives will address loan-review processes, credit risk management and asset and liability management, among others. The $163 million-asset bank also has to submit a capital plan in 60 days that includes current and future capital forecasts. Dividends may not be paid without the written approval of regulators and the bank may not extend or renew credit to "substandard" borrowers.