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.
Key ObjectivesUpon completion of this course, participants will be able to:
- Complete spreading the balance sheet and income statement using the "California Spread" method in accordance with Call Report Instructions
- Assess management's compliance with the Investment Policy and draft bullet comments addressing noted deficiencies and management's responses
- Interpret financial statements, ratios, and other numerical data, including those listed in the Uniform Bank Performance Report (UBPR), in order to describe the recent history and developing trends, as well as analyze the financial condition of the bank
- Assign and support CAMELS component ratings for Capital, Earnings, Liquidity, and with bullet point comments
- Identify the elements of a strong Internal Routine and Control program
- Determine the bank's Prompt Corrective Action (PCA) category and its compliance with minimum capital levels pursuant to FDIC Rules and Regulations Part 324
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:
- Spread a bank's balance sheet and earnings statement using the “California Spread” method, in accordance with Call Report instructions, at least twice.
- Prepare a bank's Risk-Based Capital schedule at least once
- Analyze a bank's investment securities portfolio and complete the Recapitulation of Securities Report of Examination page at least once
- Perform analyses of Capital, Earnings, and Liquidity, and assign and support ratings with bullet point comments at least once
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.