Financial Institution Letters
December 20, 2019
Risk Management Manual of Examination Policies Updated to Include Examination Documentation Modules
To provide greater transparency into the FDIC's examination processes, the FDIC Division of Risk Management Supervision has updated the Risk Management Manual of Examination Policies (Manual) by inserting Part VI, Appendix: Examination Processes and Tools, Examination Documentation Modules. The Examination Documentation Modules were developed in 1997 to provide examiners with tools to identify and assess the range of matters considered during examination activities, and they are updated periodically. The Modules direct examiners to use a risk-focused approach in conducting examination activities, thereby facilitating an efficient and effective supervisory program.
Statement of Applicability to Institutions with Total Assets under $1 Billion: This Financial Institution Letter (FIL) provides information and procedural direction to FDIC supervisory personnel. This FIL is informational and does not require action on the part of insured institutions.
- The Examination Documentation (ED) Modules have been an examination tool used by FDIC examiners since 1997. The Modules are periodically revised and updated to reflect changes in laws, regulations, and policies.
- The modules are used in the risk-focused examination framework to tailor examination procedures to the business model, complexity and risk profile of individual financial institutions. The extent to which each module is completed will vary depending on the complexity and risk profile of each institution.
- The ED Modules are organized by banking activities and processes in three categories: Primary Modules cover examination planning and the assessment of Capital, Asset Quality, Management, Earnings, Liquidity, and Sensitivity (CAMELS) areas; Supplemental Modules cover additional program areas; and Reference Modules provide more detailed procedures for specific banking activities that are addressed at a higher level in the Primary and Supplemental Modules.
- The ED Modules will be added to the Manual beginning with the Primary and Supplemental Modules. To receive notice of subsequent issuances, subscribe to FDIC updates by email.
- This FIL will expire 12 months from issuance.
- FDIC-Supervised Institutions
- Chief Executive Officer
- Risk Management Manual of Examination Policies (Basic Examination Concepts and Guidelines - Section 1.1)
- Risk Management Manual of Examination Policies (Examination Documentation (ED) Modules - Section 22.1)
- Patrick Mancoske, Examination Specialist, (202) 898-7032 or PMancoske@fdic.gov
- Lynn Dallin, Examination Specialist, (202) 898-3848 or LDallin@fdic.gov
Paper copies may be obtained through the FDIC's Public Information Center, 3501 Fairfax Drive, E-1002, Arlington, VA 22226 (877-275-3342 or 703-562-2200).