Examination Processes and Procedures
The FDIC examines banks using a risk-focused approach to assess safety and soundness and consumer protection, Community Reinvestment Act (CRA) performance, and adherence to laws and regulations. This process balances evaluating a bank’s condition at a certain point in time with assessing risk management and consumer protection processes for all phases of the economic cycle, including the ability to respond to changing market conditions.
Examinations are a key component of the supervisory process and help maintain stability and public confidence in the nation's financial system. By identifying and understanding the cause and severity of problems at individual banks and identifying emerging risks in the financial-services industry, the FDIC is able to develop effective corrective measures for individual banks, and broader supervisory strategies for the industry.
Laws and Regulations
Key laws and regulations that pertain to FDIC-supervised institutions; note that other laws and regulations also may apply.
Section 10(b) of the Federal Deposit Insurance (FDI) Act
provides the authority to conduct examinations of State nonmember banks and special examinations of any insured depository institution or nonbank financial company
Section 10(d) of the FDI Act
generally requires a full-scope, on-site examination at least once every 12 months, but permits a longer cycle for banks that meet certain criteria
Appendix A to Part 364 — Interagency Guidelines Establishing Standards for Safety and Soundness
(ecfr.gov) addresses operational and managerial standards for safety and soundness
Appendix B to Part 364 — Interagency Guidelines Establishing Information Security Standards
(ecfr.gov) addresses administrative, technical, and physical safeguards to protect customer information
The Bank Service Company Act
establishes FDIC regulation and examination authority over certain service providers
Part 309 — Disclosure of Information
(ecfr.gov) outlines the confidentiality of examination findings and establishes that the information may not be disclosed to non-related third parties without prior regulatory approval
Frequently asked questions, advisories, statements of policy, and other information issued by the FDIC alone, or on an interagency basis, provided to promote safe-and-sound operations.
Risk Management Manual of Examination Policies
details processes, concepts, and ratings used to evaluate a bank’s overall safety and soundness and compliance with laws and regulations
Consumer Compliance Examination Manual
details processes, concepts, and ratings used to evaluate compliance with federal consumer protection laws, fair lending statutes, and the Community Reinvestment Act
Federal Financial Institutions Examination Council (FFIEC) Bank Secrecy Act/Anti-Money Laundering (BSA/AML) InfoBase
provides access to the BSA/AML Examination Manual and related resources
FFIEC Information Technology (IT) Examination Handbook InfoBase
provides access to the FFIEC IT Booklets and WorkPrograms used to evaluate bank and service provider risk management processes
Trust Examination Manual
outlines practices used to evaluate trust operations and determine if policies or account administration processes may result in contingent liabilities or estimated losses that could damage capital protection
Appeals of Material Supervisory Determinations: Guidelines & Decisions
describes the types of determinations that are eligible for review and the process by which appeals will be considered and decided
Formal and Informal Enforcement Actions Manual
provides information about formal and informal corrective actions used to address weak operating practices, deteriorating financial condition, or other actionable misconduct
Applications Procedures Manual
provides direction for professional staff assigned to review and process most applications, notices, and other requests (filings) submitted to the FDIC
Supplemental information and guidance related to safe and sound banking operations.
features articles that focus on sound principles and practices for bank supervision
Consumer Compliance Supervisory Highlights
provides an overview of consumer compliance performance at FDIC supervised banks, observations regarding findings related to consumer protection laws, and addresses regulatory developments
Informational videos and recordings of prior webcasts and teleconferences.
Overview of the FDIC and the Examination Process technical assistance video provides an overview of the FDIC, the FDIC’s mission, and the examination process.
The FDIC’s Technical Assistance Video Program includes educational videos designed to provide bank directors, officers, and employees with useful information about areas of supervisory focus and regulatory changes.