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Supervisory Insights

Winter 2013 Vol. 10, Issue 2 - Table of Contents

Last Updated: July 24, 2023

Supervisory Insights - Winter 2013 - PDF

Letter from the Director


Industry Trends Highlight Importance of Effective Interest-Rate Risk Management

During the recent sustained low interest rate environment, the banking industry’s asset mix and funding profile have shifted. This article looks at how these changes appear to have resulted in increased interest-rate risk (IRR) exposure. The article also highlights supervisory expectations for IRR management and suggests strategies financial institutions can use to assess and mitigate this exposure.

Lending Trends: Results from the FDIC’s Credit and Consumer Products/Services Survey

Completed by FDIC examiners at the conclusion of each risk management examination, the Credit and Consumer Products/Services Survey gathers examiner insights on underwriting practices, new and evolving banking activities and products, commercial real estate market conditions, and funding practices. This article shares recent Survey results with a focus on lending activity including trends in underwriting, factors influencing banks’ ability and willingness to lend, use of loan workouts, and loan growth trends across the country.

The New Basel III Definition of Capital: Understanding the Deductions for Investments in Unconsolidated Financial Institutions

The new regulatory capital rules require a deduction from capital, under certain circumstances, for a portion of a bank’s investments in the capital of unconsolidated financial institutions. This article, which is part of the FDIC’s ongoing efforts to assist banks in understanding the new rule, provides examples that show the mechanics of the calculation.

Regular Features

Regulatory and Supervisory Roundup

This feature provides an overview of recently released regulations and supervisory guidance.

Supervisory Insights

Supervisory Insights is published by the Division of Risk Management Supervision of the Federal Deposit Insurance Corporation to promote sound principles and practices for bank supervision.

Martin J. Gruenberg
Chairman, FDIC

Doreen R. Eberley
Director, Division of Risk Management Supervision

Journal Executive Board

Division of Risk Management Supervision
George E. French, Deputy Director and Executive Editor
James C. Watkins, Senior Deputy Director
Robert L. Burns, Deputy Director
Melinda West, Deputy Director

Division of Depositor and Consumer Protection
Sylvia H. Plunkett, Senior Deputy Director
Jonathan N. Miller, Deputy Director

Regional Directors
Thomas J. Dujenski, Atlanta Region
Kristie K. Elmquist, Dallas Region
Stan R. Ivie, San Francisco Region
James D. LaPierre, Kansas City Region
M. Anthony Lowe, Chicago Region
John F. Vogel, New York Region

Journal Staff

Kim E. Lowry
Managing Editor

Daniel P. Bergman
Financial Writer

Jeffrey A. Fahrmann
Financial Writer

Supervisory Insights is available online by visiting the FDIC’s website at To provide comments or suggestions for future articles, to request permission to reprint individual articles, or to request print copies, send an e-mail to

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.