Risk Management Training Program
Introduction to Examinations School
This course addresses the fundamentals of bank supervision, basic bank analysis, and Report of Examination preparation. The course consists of eight modules with built in exercises, and a project simulating a bank examination. Participants actively take part in group case studies and other classroom activities.
Upon completion of this course, participants will be able to:
- Verify the Call Report balance sheet and income statement using a "California Spread"
- Determine the impact of a bank's investment portfolio on its financial condition
- Identify asset and funding concentrations in accordance with regulatory guidance
- Use the Uniform Bank Performance Report (UBPR) and bank records to identify and calculate ratios pertinent to a bank's financial soundness for various CAMELS components
- Identify the elements of a strong internal routines and controls program
- Gain additional experience in completing various ROE pages
- Assign CAMELS component ratings for capital, earnings, and liquidity, and support with bullet point comments
Instructional FormatPre-course work (Independent Self Study), facilitated classroom discussion/lectures, small group activities, and in-class project.
This school consists of a 32 hour precourse independent study, 16 hour precourse reading on accounting, and a two week instructor led workshop.
This course is designed for pre-commissioned examiners who generally have six months of experience in risk management bank examinations.
This course is open to appropriate staff of the FDIC and partner government regulatory agencies. This course is not open to the public or staff of private banks.
PrerequisitesThe pre-commissioned examiner should have performed, under a coach's supervision, the following items prior to this school:
- Prepare a California Spread of the Balance Sheet and Income Statement in accordance with Call instructions at least twice
- Verify the accuracy of schedule RC-B Securities in accordance with Call Report instructions at least once
- Capital, at least once:
- Risk weight on-balance sheet and off-balance sheet items
- Manually complete the Capital Calculations page
- Calculate the following capital ratios:
- Tier 1 Capital/Average Assets
- Common Equity Tier 1 Capital/Risk-Weighted Assets
- Tier 1 Capital/Risk-weighted Assets
- Total Capital/Risk-Weighted Assets
- Perform analyses of liquidity, earnings, and capital, and draft bullet point comments which support an assigned rating at least once
- Have a working knowledge of Call Report Instructions and RM Manual of Examination Policies ROE Instructions pertaining to the Statement of Condition, Earnings, Capital, Liquidity, and RMA pages
Pre-Course AssignmentPrior to attending the workshop, students are required to do the following:
- A precourse independent study covering financial concepts and analysis and a workshop qualification examination totaling approximately 32 hours.
- Precourse reading and work totaling approximately 16 hours on accounting related materials.
- Submit a completed participant profile.
Special RequirementsParticipants will need to bring a Hewlett Packard 12-C financial calculator or its equivalent to use during class. Additionally, bring your work assigned laptop, and cable lock. The laptop needs to have loaded the following programs for use in the class: Microsoft Word, Microsoft Excel, Microsoft PowerPoint, and Adobe Acrobat.
Post Course RecommendationAssign participant to serve as Operations Manager on an upcoming examination (generally within a few months) to reinforce skills learned at this school.
Post Course FeedbackA written assessment of the participant's performance is submitted to each participant's field supervisor or district office approximately 30 days after the conclusion of the school.
CreditsContinuing Education Units (CEU): 7.0
Continuing Professional Education Units (CPE): 84
For information regarding administrative policies such as complaints and refunds, please contact Corporate University, Attn: NASBA Representative Ava Livas, Room A-3025, 3501 North Fairfax Drive, Arlington, VA 22226 (703) 562-2463.
FDIC is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have the final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.learningmarket.org.
The FDIC has been approved as an Authorized Provider by the International Association for Continuing Education and Training (IACET) (www.iacet.org), 1760 Old Meadow Road, Suite 500, McLean, VA 22102.