FDIC TE Test 000 Questions and
Answers
What does the ROCA rating system rate? - Answers -Risk Management
Operational Controls
Compliance
Asset Quality
What are the mandatory provisions under Section 38 applicable to Undercapitalized
banks? - Answers -Immediately after receiving notice (or deemed to have notice) [Call
Report, receipt of ROE, written FDIC notice] bank is subject to Sec 38 of FDI Act:
-restricting capital distributions and management fees
-requires FDIC to monitor condition of bank
-requires submission of a Capital Restoration Plan
-restrict asset growth of bank
-prior approval required for acquisitions, branching, and new lines of business
324.405(a)(2)
If a lease meets one or more of what 4 criteria to be accounted Capitalized Lease? -
Answers -Ownership of property transferred to lessee @ end of lease term
lease term contains bargain purchase option
lease term represents at least 75% of est. economic life of asset
PV of minimum lease payments at beginning of lease is 90% or more of the FV of the
leased property to lessor less any related investment tax credit expected to be realized
by lessor.
How should a capitalized lease be reported on the Call Report - Answers -Reported in
P&FA @ PV of the minimum req. lease payments over the non-cancellable term & PV
of BPO payment less portion of payments for admin expense. Property amortized
according to bank's (lessee's) normal depreciation policy.
What are the 5 methods of accounting for dispositions of ORE? (ASC 360) - Answers -
Full accrual
, Installment
Cost Recovery
Reduced Profit
Deposit Method
What defines a full-scope exam? - Answers -Procedures necessary to complete
mandatory ROE pages + evaluate all components of the UFIRS/CAMELS ratings
All exam activities are considered in the overall assessment of the bank including:
risk mgmt, IT, BSA/AML, OFAC, Trust, Registered transfer agent, muni securities
dealer, gov't securities dealer, as applicable
What are the mandatory ROE pages? - Answers -Cover Page
Table of Contents
ECC
ITA
EDR
Signatures of Directors
Ratings Definitions
Confidential.
Required when applicable:
MRBA
Compliance with Enforcement Actions
Violations of Laws & Regulations
Concentrations
Completed but not in ROE
Officers Questionnaire
Directors/Trustees and Officers
What is the purpose of a Bank Examination? - Answers --Ensure public confidence in
banking system
-Evaluate adherence to laws and regulations
-Ensure stability of insured banks by identifying undue risks and weak risk management
practices
-Protect the DIF
-Helps FDIC identify cause and severity of problems at individual banks and emerging
risks in financial industry
Answers
What does the ROCA rating system rate? - Answers -Risk Management
Operational Controls
Compliance
Asset Quality
What are the mandatory provisions under Section 38 applicable to Undercapitalized
banks? - Answers -Immediately after receiving notice (or deemed to have notice) [Call
Report, receipt of ROE, written FDIC notice] bank is subject to Sec 38 of FDI Act:
-restricting capital distributions and management fees
-requires FDIC to monitor condition of bank
-requires submission of a Capital Restoration Plan
-restrict asset growth of bank
-prior approval required for acquisitions, branching, and new lines of business
324.405(a)(2)
If a lease meets one or more of what 4 criteria to be accounted Capitalized Lease? -
Answers -Ownership of property transferred to lessee @ end of lease term
lease term contains bargain purchase option
lease term represents at least 75% of est. economic life of asset
PV of minimum lease payments at beginning of lease is 90% or more of the FV of the
leased property to lessor less any related investment tax credit expected to be realized
by lessor.
How should a capitalized lease be reported on the Call Report - Answers -Reported in
P&FA @ PV of the minimum req. lease payments over the non-cancellable term & PV
of BPO payment less portion of payments for admin expense. Property amortized
according to bank's (lessee's) normal depreciation policy.
What are the 5 methods of accounting for dispositions of ORE? (ASC 360) - Answers -
Full accrual
, Installment
Cost Recovery
Reduced Profit
Deposit Method
What defines a full-scope exam? - Answers -Procedures necessary to complete
mandatory ROE pages + evaluate all components of the UFIRS/CAMELS ratings
All exam activities are considered in the overall assessment of the bank including:
risk mgmt, IT, BSA/AML, OFAC, Trust, Registered transfer agent, muni securities
dealer, gov't securities dealer, as applicable
What are the mandatory ROE pages? - Answers -Cover Page
Table of Contents
ECC
ITA
EDR
Signatures of Directors
Ratings Definitions
Confidential.
Required when applicable:
MRBA
Compliance with Enforcement Actions
Violations of Laws & Regulations
Concentrations
Completed but not in ROE
Officers Questionnaire
Directors/Trustees and Officers
What is the purpose of a Bank Examination? - Answers --Ensure public confidence in
banking system
-Evaluate adherence to laws and regulations
-Ensure stability of insured banks by identifying undue risks and weak risk management
practices
-Protect the DIF
-Helps FDIC identify cause and severity of problems at individual banks and emerging
risks in financial industry
