Economic Capital and the Assessment of Capital Adequacy
An increasing number of banking organizations are using economic capital methodologies to quantify risk, manage operations based on risk-related performance measures, and allocate capital commensurate with the risk profile of their business activities. Regulatory agencies are incorporating these industry efforts into supervisory evaluations.
The Importance of a Loan Policy "Tune-Up"
All insured institutions should have a formal loan policy that reflects a bank's current lending strategies and procedures. This article provides guidance for keeping a policy effective and up to date.
From the Examinerís Desk
Bank examiners play a key role in the regulation of the real estate appraisal function. What situations typically result in appraiser referrals by examiners, and how does the referral process work?
The number of insured institutions participating in Mortgage Partnership Finance programs offered by Federal Home Loan Banks continues to increase. This article describes accounting procedures for these programs.
Supervisory Insights is published by the Division
of Supervision and Consumer Protection of the Federal Deposit Insurance Corporation
to promote sound principles and best practices for bank supervision.
Donald E. Powell
Michael J. Zamorski
Director, Division of Supervision
and Consumer Protection
George E. French
Journal Executive Board
Donna J. Gambrell, Deputy
John M. Lane, Deputy Director
Sandra L. Thompson, Deputy
Ronald F. Bieker, Regional Director
John F. Carter, Regional Director
Nancy E. Hall, Regional Director
Scott M. Polakoff, Regional
Mark S. Schmidt, Regional Director
Christopher J. Spoth, Regional
Kim E. Lowry Managing Editor
John S. Wholeben Financial Writer
James J. Willemsen Financial Writer
Supervisory Insights is available online by visiting
the FDICís website at www.fdic.gov. To provide
comments or suggestions for future articles, or to request print copies, contact
Managing Editor Kim Lowry at 202-898-6635 or SupervisoryJournal@fdic.gov.
The views expressed in Supervisory Insights are
those of the authors and do not necessarily reflect official positions of the
Federal Deposit Insurance Corporation. In particular, articles should not be construed
as definitive regulatory or supervisory guidance. Some of the information used
in the preparation of this publication was obtained from publicly available sources
that are considered reliable. However, the use of this information does not constitute
an endorsement of its accuracy by the Federal Deposit Insurance Corporation.