Risk Management Training Program
Loan Analysis School
Loan Analysis School introduces participants to the loan review process. Through a combination of computer-based instruction and participation in a related skills-practice workshop, participants learn how to review and classify individual loans. Specifically, participants learn how to analyze financial statements, calculate and interpret cash flow, and assess the appropriateness of loan structure, pricing, and documentation. Participants analyze a series of loans, prepare for and conduct loan discussions, make loan classification decisions, and compose loan write-ups.
Upon completion of this course, participants will be able to:
- Review a loan file for creditworthiness
- Analyze financial statements
- Document any weaknesses or issues on a loan line sheet
- Prepare for, and conduct, a loan discussion
- Determine appropriate loan classification
- Prepare a loan write-up using the 6 P format
- Identify apparent violations of lending laws, rules, and regulations
Computer-based instruction, facilitated classroom discussion/lectures, and small group activities.
This school consists of a 20-hour pre-course computer-based instruction and a two-week, instructor-led workshop.
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.
FDIC participants should attend in accordance with the parameters outlined in the Examiner Training and Development Policy (30-34 months for CEP Classes and 23-27 months for individuals hired after March 2020). State Banking Authority participants should attend no sooner than four months after successfully completing Asset Liability Management School. Prior to attendance, participants must demonstrate competent performance in balance sheet analysis; investment portfolio analysis; earnings analysis; internal routines and control analysis; Call Report analysis; and Uniform Bank Performance Report analysis. This also includes unassisted preparation of Report-quality comments for Capital, Earnings, Liquidity, and Sensitivity to Market Risk. Participants must have a firm working knowledge of Microsoft Word and Excel and be able to work effectively in a team environment.
Note: The minimum interval between the Asset Liability Management School and the Loan Analysis School is four months
Under the guidance of an experienced examiner, students must have participated in the following loan-related activities:
- Reviewed the documentation contained in a typical commercial loan file
- Observed a loan discussion
- Read several loan write-ups included within a Report of Examination and discussed the write-ups with an experienced examiner (minimum of two)
- Prepared practice (or actual) write-ups (minimum of two)
- Read the Loan section of the Risk Management Manual of Examination Policies
The pre-course assignment is generally due 11 business days prior to the start of the session. The exact due date for any given session will be specified in the pre-course information sent approximately two months prior to the start date.
Prior to attending the workshop, students are required to do the following:
- Complete the Loan Analysis School Pre-Course computer-based instruction modules and successfully pass the Workshop Qualification Examination.
- Complete the Participant Profile.
Participants need to bring their work-assigned laptop and cable lock to class. The following programs are used in the class and should be available for use on every participant’s laptop: Microsoft Word, Microsoft Excel, Microsoft PowerPoint, and Adobe Acrobat.
Post Course Recommendation
The participants should review and discuss loans at several upcoming examinations, as well as be given the opportunity to prepare loan write-ups to reinforce skills learned at this school.
Post Course Feedback
A 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 Unit (CEU): 7.0
Continuing Professional Education Unit (CPE): 83.5
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.
The Federal Deposit Insurance Corporation 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 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: NASBARegistry.org
The Federal Deposit Insurance Corporation (FDIC) is accredited by the International Association for Continuing Education and Training (IACET) (www.iacet.org). The FDIC complies with the ANSI/IACET Standard, which is recognized internationally as a standard of excellence in instructional practices. As a result of this accreditation, the FDIC is accredited to issue the IACET CEU.
For more information concerning course content and administration, please contact Senior Bank Examination Training Specialist Catherine Eisel at firstname.lastname@example.org or (703) 516-5190.