FDIC TE Prep Questions and Answers
100% Pass
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. - ANSWER✔✔-What
is included in tier 2 capital?
To ensure public confidence in the banking system and to protect the DIF -
ANSWER✔✔-What is the purpose of the FDIC conducting bank
examinations?
Contact the regional office to discuss with the CM or the ARD -
ANSWER✔✔-What should examiners do before discussing proposed
ratings of a 3 or worse rated bank?
Copyright ©EMILLYCHARLOTE 2025 ACADEMIC YEAR, ALL RIGHTS RESERVED. Page 1/148
,Empower examiners to make thorough examination of the banks affairs -
ANSWER✔✔-Sections 10(b) and 10(c) of the FDI do what?
The quality of management - ANSWER✔✔-What is often the single most
important factor of a successful operation of an insured institution?
Part 309 of the FDIC rules and regs - ANSWER✔✔-Examination findings,
including the composite and component ratings, are subject to
confidentiality under which regulation/rule?
for any bank newly assigned a CAMELS composite 3 or worse -
ANSWER✔✔-When should an examination letter be delivered to the
CEO/President during an exit meeting?
every 12 months - ANSWER✔✔-Under Section 10(d) of the FDI act, how
often must insured branches of foreign banks be examined?
18 months - ANSWER✔✔-Section 347.211 of the FDIC rule and regs states
that domestic branches of foreign banks can be considered for examination
every ___________ months?
6 months - ANSWER✔✔-Limited scope examinations should be performed
how many months after an enforcement action is issued?
Copyright ©EMILLYCHARLOTE 2025 ACADEMIC YEAR, ALL RIGHTS RESERVED. Page 2/148
,~the bank has total assets of $3 billion or less
~ 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 - ANSWER✔✔-When
can examination schedules be extended to 18 months for a state
nonmember bank?
The FFEIC to issue guidelines establishing standards for the purpose of
determining the acceptability of state reports of examination. -
ANSWER✔✔-Section 10(D)(9) ofthe FDI act requires what?
Copyright ©EMILLYCHARLOTE 2025 ACADEMIC YEAR, ALL RIGHTS RESERVED. Page 3/148
, 2 weeks - ANSWER✔✔-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
With the FDIC absorbing 80% of injured losses (up to a stated threshold)
and receives 80 percent of recoveries - ANSWER✔✔-How are shared-loss
agreements generally written?
5 years for losses and 8 years for recoveries - ANSWER✔✔-How many
years are commercial, shared loss agreements generally cover how many
years for losses and recoveries?
10 years for both - ANSWER✔✔-For residential mortgages, shared losses
agreements generally cover how many years for losses and recoveries?
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%) -
ANSWER✔✔-How should an asset covered under a shared loss agreement
be classified?
Copyright ©EMILLYCHARLOTE 2025 ACADEMIC YEAR, ALL RIGHTS RESERVED. Page 4/148
100% Pass
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. - ANSWER✔✔-What
is included in tier 2 capital?
To ensure public confidence in the banking system and to protect the DIF -
ANSWER✔✔-What is the purpose of the FDIC conducting bank
examinations?
Contact the regional office to discuss with the CM or the ARD -
ANSWER✔✔-What should examiners do before discussing proposed
ratings of a 3 or worse rated bank?
Copyright ©EMILLYCHARLOTE 2025 ACADEMIC YEAR, ALL RIGHTS RESERVED. Page 1/148
,Empower examiners to make thorough examination of the banks affairs -
ANSWER✔✔-Sections 10(b) and 10(c) of the FDI do what?
The quality of management - ANSWER✔✔-What is often the single most
important factor of a successful operation of an insured institution?
Part 309 of the FDIC rules and regs - ANSWER✔✔-Examination findings,
including the composite and component ratings, are subject to
confidentiality under which regulation/rule?
for any bank newly assigned a CAMELS composite 3 or worse -
ANSWER✔✔-When should an examination letter be delivered to the
CEO/President during an exit meeting?
every 12 months - ANSWER✔✔-Under Section 10(d) of the FDI act, how
often must insured branches of foreign banks be examined?
18 months - ANSWER✔✔-Section 347.211 of the FDIC rule and regs states
that domestic branches of foreign banks can be considered for examination
every ___________ months?
6 months - ANSWER✔✔-Limited scope examinations should be performed
how many months after an enforcement action is issued?
Copyright ©EMILLYCHARLOTE 2025 ACADEMIC YEAR, ALL RIGHTS RESERVED. Page 2/148
,~the bank has total assets of $3 billion or less
~ 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 - ANSWER✔✔-When
can examination schedules be extended to 18 months for a state
nonmember bank?
The FFEIC to issue guidelines establishing standards for the purpose of
determining the acceptability of state reports of examination. -
ANSWER✔✔-Section 10(D)(9) ofthe FDI act requires what?
Copyright ©EMILLYCHARLOTE 2025 ACADEMIC YEAR, ALL RIGHTS RESERVED. Page 3/148
, 2 weeks - ANSWER✔✔-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
With the FDIC absorbing 80% of injured losses (up to a stated threshold)
and receives 80 percent of recoveries - ANSWER✔✔-How are shared-loss
agreements generally written?
5 years for losses and 8 years for recoveries - ANSWER✔✔-How many
years are commercial, shared loss agreements generally cover how many
years for losses and recoveries?
10 years for both - ANSWER✔✔-For residential mortgages, shared losses
agreements generally cover how many years for losses and recoveries?
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%) -
ANSWER✔✔-How should an asset covered under a shared loss agreement
be classified?
Copyright ©EMILLYCHARLOTE 2025 ACADEMIC YEAR, ALL RIGHTS RESERVED. Page 4/148
