FDIC TE Study Guide (INTRO) – Questions With Real
Solutions
Can accountants and attorneys read the ROE without FDIC approval?
Correct Answer - Yes. if acting in their capacities as bank employees and as
it relates to their scope of employment
Can the holding company read the ROE without FDIC permission? Correct
Answer - No
When do expanded analysis section of ED modules need to be filled out?
Correct Answer - Complete only for decision factors that present greatest
degree of risk. If risks are appropriately managed, only CADFs required.
How long should BSA docs be retained for? Correct Answer - 5 years,
retained separately from safety and soundness
How long should linesheets be retained for? Correct Answer - one
examination cycle
Conditions for alternate examinations? Correct Answer - Can alternate
with state if:
Composite 1 or 2
Stable and improving composite 3 determined by an offsite review
What is defined by the end of the examination Correct Answer - earlier
of date EIC submits ROE for review or 60 calendar days from start date.
Can specialty examinations be extended? Correct Answer - Yes, but
specialty areas rated 4 or 5 should normally not be extended past 1 year
Are specialty exam comments prepared for ECC? Correct Answer - Yes
Is the FDIC required to conduct any specialty examination that the state
authority doesn't conduct? Correct Answer - No EXCEPT for BSA. FDIC is
required to conduct a BSA exam if the state doesn't conduct a BSA exam
, To b eligible for 18 mo cycle insured branches of foreign banks must....
Correct Answer - TA less than $3B, composite rating of 1 or 2, no formal
enforcement action, no change in control during preceding 12 months, T1C of
at least 6% and total RBC capital of at least 10% when reported on
consolidated basis OR have maintained on a daily basis, eligible assets not less
than 108% of preceding quarters, average 3rd party liabilities.
What are the minimum requirements of a full scope examination? Correct
Answer - procedures necessary to complete mandatory pages of uniform
ROE and evaluate all CAMELS components of the UFIRS rating system. Include
specialty exams.
Can you assign rating during a limited scope/visitation? Correct Answer -
Depending on scope, examiners can assign composite and component rating.
Component ratings for areas not sufficiently reviewed should be brought
forward from the last exam.
Do examiners need to complete standard ROE for limited scope? Correct
Answer - No. usually conveyed in a memo from EIC to regional director
Examination/visitation cycle for denovos Correct Answer - limited scope
in the first 6th months, full scope within first 12 months, one examination
each year for the first 3 years. Can alternate with state AFTER the first full
scope exam.
What is considered a significant deviation in asset growth projections?
Correct Answer - 25%
Exam cycle for bank flip from FRB to FDIC? Correct Answer - within 12
months of last exam prior to flip. If last exam was state, can accept if as long as
institution is composite 1 or 2
Criteria that determines the effectiveness of state report (4) Correct Answer
- Completeness of report, adequacy of documentation maintained to
support ROE, ability of state to achieve exam objectives over time, adequacy of
any formal of informal arrangement between state and FDIC
When is interim contact conducted? Correct Answer - Within 30 days of
midpoint between examinations
Solutions
Can accountants and attorneys read the ROE without FDIC approval?
Correct Answer - Yes. if acting in their capacities as bank employees and as
it relates to their scope of employment
Can the holding company read the ROE without FDIC permission? Correct
Answer - No
When do expanded analysis section of ED modules need to be filled out?
Correct Answer - Complete only for decision factors that present greatest
degree of risk. If risks are appropriately managed, only CADFs required.
How long should BSA docs be retained for? Correct Answer - 5 years,
retained separately from safety and soundness
How long should linesheets be retained for? Correct Answer - one
examination cycle
Conditions for alternate examinations? Correct Answer - Can alternate
with state if:
Composite 1 or 2
Stable and improving composite 3 determined by an offsite review
What is defined by the end of the examination Correct Answer - earlier
of date EIC submits ROE for review or 60 calendar days from start date.
Can specialty examinations be extended? Correct Answer - Yes, but
specialty areas rated 4 or 5 should normally not be extended past 1 year
Are specialty exam comments prepared for ECC? Correct Answer - Yes
Is the FDIC required to conduct any specialty examination that the state
authority doesn't conduct? Correct Answer - No EXCEPT for BSA. FDIC is
required to conduct a BSA exam if the state doesn't conduct a BSA exam
, To b eligible for 18 mo cycle insured branches of foreign banks must....
Correct Answer - TA less than $3B, composite rating of 1 or 2, no formal
enforcement action, no change in control during preceding 12 months, T1C of
at least 6% and total RBC capital of at least 10% when reported on
consolidated basis OR have maintained on a daily basis, eligible assets not less
than 108% of preceding quarters, average 3rd party liabilities.
What are the minimum requirements of a full scope examination? Correct
Answer - procedures necessary to complete mandatory pages of uniform
ROE and evaluate all CAMELS components of the UFIRS rating system. Include
specialty exams.
Can you assign rating during a limited scope/visitation? Correct Answer -
Depending on scope, examiners can assign composite and component rating.
Component ratings for areas not sufficiently reviewed should be brought
forward from the last exam.
Do examiners need to complete standard ROE for limited scope? Correct
Answer - No. usually conveyed in a memo from EIC to regional director
Examination/visitation cycle for denovos Correct Answer - limited scope
in the first 6th months, full scope within first 12 months, one examination
each year for the first 3 years. Can alternate with state AFTER the first full
scope exam.
What is considered a significant deviation in asset growth projections?
Correct Answer - 25%
Exam cycle for bank flip from FRB to FDIC? Correct Answer - within 12
months of last exam prior to flip. If last exam was state, can accept if as long as
institution is composite 1 or 2
Criteria that determines the effectiveness of state report (4) Correct Answer
- Completeness of report, adequacy of documentation maintained to
support ROE, ability of state to achieve exam objectives over time, adequacy of
any formal of informal arrangement between state and FDIC
When is interim contact conducted? Correct Answer - Within 30 days of
midpoint between examinations
