FDIC TE PREP EXAM LATEST
What is included in tier 2 capital? - ANSWERS-ALLL up to 1.25% of
risk-weighted assets
qualifying preferred stock
Subordinated debt
Qualifying tier 2 minority interest, less any deductions in the tier 2
instrument of an unconsolidated financial institution.
What is the purpose of the FDIC conducting bank examinations? -
ANSWERS-To ensure public confidence in the banking system and to
protect the DIF
What should examiners do before discussing proposed ratings of a 3 or
worse rated bank? - ANSWERS-Contact the regional office to discuss
with the CM or the ARD
Sections 10(b) and 10(c) of the FDI do what? - ANSWERS-Empower
examiners to make thorough examination of the banks affairs
What is often the single most important factor of a successful operation
of an insured institution? - ANSWERS-The quality of management
END OF
PAGE
1
, FDIC TE PREP EXAM LATEST
Examination findings, including the composite and component ratings,
are subject to confidentiality under which regulation/rule? - ANSWERS-
Part 309 of the FDIC rules and regs
When should an examination letter be delivered to the CEO/President
during an exit meeting? - ANSWERS-for any bank newly assigned a
CAMELS composite 3 or worse
Under Section 10(d) of the FDI act, how often must insured branches of
foreign banks be examined? - ANSWERS-every 12 months
Section 347.211 of the FDIC rule and regs states that domestic branches
of foreign banks can be considered for examination every ___________
months? - ANSWERS-18 months
Limited scope examinations should be performed how many months
after an enforcement action is issued? - ANSWERS-6 months
When can examination schedules be extended to 18 months for a state
nonmember bank? - ANSWERS-~the bank has total assets of $3 billion
or less
END OF
PAGE
2
, FDIC TE PREP EXAM LATEST
~ the bank is well capitalized as defined in 323.403(B)(1) of FDIC rules
and regs
~the ban was assigned a management rating of 1 or 2 at the last
examination
~the ban was assigned a composite rating of 1 or 2 at the last exam
~the bank is not subject to formal enforcement proceedings or order by
the FDIC, OCC< or FRB
~no person acquired control of the bank during the preceding 12 months
in which the last full-scope examination was completed
Section 10(D)(9) ofthe FDI act requires what? - ANSWERS-The FFEIC
to issue guidelines establishing standards for the purpose of determining
the acceptability of state reports of examination.
How much times notice should a bank be given for notice of an up
coming examination and provided enough time to complete pre-
examination request - ANSWERS-2 weeks
How are shared-loss agreements generally written? - ANSWERS-With
the FDIC absorbing 80% of injured losses (up to a stated threshold) and
receives 80 percent of recoveries
END OF
PAGE
3
, FDIC TE PREP EXAM LATEST
How many years are commercial, shared loss agreements generally
cover how many years for losses and recoveries? - ANSWERS-5 years
for losses and 8 years for recoveries
For residential mortgages, shared losses agreements generally cover how
many years for losses and recoveries? - ANSWERS-10 years for both
How should an asset covered under a shared loss agreement be
classified? - ANSWERS-The assets should be adversely classified (sub,
doubt, loss) and be reduced by the applicable coverage rate stated in the
SLA (often 80% or 95%)
During an exit meeting, management should be made aware of what? -
ANSWERS-All deficiencies and supervisory recommendations that will
be cited in the ROE.
When is a board meeting required? - ANSWERS-~36 months or more
have elapsed since the last such meeting
~the management component is 3 or worse
~two component ratings are 3 or worse
~or any other CAMEL rating is 4 or 5
END OF
PAGE
4
What is included in tier 2 capital? - ANSWERS-ALLL up to 1.25% of
risk-weighted assets
qualifying preferred stock
Subordinated debt
Qualifying tier 2 minority interest, less any deductions in the tier 2
instrument of an unconsolidated financial institution.
What is the purpose of the FDIC conducting bank examinations? -
ANSWERS-To ensure public confidence in the banking system and to
protect the DIF
What should examiners do before discussing proposed ratings of a 3 or
worse rated bank? - ANSWERS-Contact the regional office to discuss
with the CM or the ARD
Sections 10(b) and 10(c) of the FDI do what? - ANSWERS-Empower
examiners to make thorough examination of the banks affairs
What is often the single most important factor of a successful operation
of an insured institution? - ANSWERS-The quality of management
END OF
PAGE
1
, FDIC TE PREP EXAM LATEST
Examination findings, including the composite and component ratings,
are subject to confidentiality under which regulation/rule? - ANSWERS-
Part 309 of the FDIC rules and regs
When should an examination letter be delivered to the CEO/President
during an exit meeting? - ANSWERS-for any bank newly assigned a
CAMELS composite 3 or worse
Under Section 10(d) of the FDI act, how often must insured branches of
foreign banks be examined? - ANSWERS-every 12 months
Section 347.211 of the FDIC rule and regs states that domestic branches
of foreign banks can be considered for examination every ___________
months? - ANSWERS-18 months
Limited scope examinations should be performed how many months
after an enforcement action is issued? - ANSWERS-6 months
When can examination schedules be extended to 18 months for a state
nonmember bank? - ANSWERS-~the bank has total assets of $3 billion
or less
END OF
PAGE
2
, FDIC TE PREP EXAM LATEST
~ the bank is well capitalized as defined in 323.403(B)(1) of FDIC rules
and regs
~the ban was assigned a management rating of 1 or 2 at the last
examination
~the ban was assigned a composite rating of 1 or 2 at the last exam
~the bank is not subject to formal enforcement proceedings or order by
the FDIC, OCC< or FRB
~no person acquired control of the bank during the preceding 12 months
in which the last full-scope examination was completed
Section 10(D)(9) ofthe FDI act requires what? - ANSWERS-The FFEIC
to issue guidelines establishing standards for the purpose of determining
the acceptability of state reports of examination.
How much times notice should a bank be given for notice of an up
coming examination and provided enough time to complete pre-
examination request - ANSWERS-2 weeks
How are shared-loss agreements generally written? - ANSWERS-With
the FDIC absorbing 80% of injured losses (up to a stated threshold) and
receives 80 percent of recoveries
END OF
PAGE
3
, FDIC TE PREP EXAM LATEST
How many years are commercial, shared loss agreements generally
cover how many years for losses and recoveries? - ANSWERS-5 years
for losses and 8 years for recoveries
For residential mortgages, shared losses agreements generally cover how
many years for losses and recoveries? - ANSWERS-10 years for both
How should an asset covered under a shared loss agreement be
classified? - ANSWERS-The assets should be adversely classified (sub,
doubt, loss) and be reduced by the applicable coverage rate stated in the
SLA (often 80% or 95%)
During an exit meeting, management should be made aware of what? -
ANSWERS-All deficiencies and supervisory recommendations that will
be cited in the ROE.
When is a board meeting required? - ANSWERS-~36 months or more
have elapsed since the last such meeting
~the management component is 3 or worse
~two component ratings are 3 or worse
~or any other CAMEL rating is 4 or 5
END OF
PAGE
4
