FDIC TE TEST STUDY GUIDE 2025/2026 ACCURATE QUESTIONS AND VERIFIED CORRECT SOLUTIONS WITH RATIONALES || 100% GUARANTEED PASS <RECENT VERSION>

FDIC TE TEST STUDY GUIDE 2025/2026 ACCURATE QUESTIONS AND VERIFIED CORRECT SOLUTIONS WITH RATIONALES || 100% GUARANTEED PASS &lt;RECENT VERSION&gt; 1. What is included in tier 2 capital? - ANSWER 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. 2. What is the purpose of the FDIC conducting bank examinations? - ANSWER To ensure public confidence in the banking system and to protect the DIF 3. What should examiners do before discussing proposed ratings of a 3 or worse rated bank? - ANSWER Contact the regional office to discuss with the CM or the ARD 4. Sections 10(b) and 10(c) of the FDI do what? - ANSWER Empower examiners to make thorough examination of the banks affairs 5. What is often the single most important factor of a successful operation of an insured institution? - ANSWER The quality of management 6. Examination findings, including the composite and component ratings, are subject to confidentiality under which regulation/rule? - ANSWER Part 309 of the FDIC rules and regs 7. When should an examination letter be delivered to the CEO/President during an exit meeting? - ANSWER for any bank newly assigned a CAMELS composite 3 or worse 8. Under Section 10(d) of the FDI act, how often must insured branches of foreign banks be examined? - ANSWER every 12 months 9. Section 347.211 of the FDIC rule and regs states that domestic branches of foreign banks can be considered for examination every ___________ months? - ANSWER 18 months 10. Limited scope examinations should be performed how many months after an enforcement action is issued? - ANSWER 6 months 11. When can examination schedules be extended to 18 months for a state nonmember bank? - ANSWER ~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&lt; or FRB ~no person acquired control of the bank during the preceding 12 months in which the last full-scope examination was completed 12. Section 10(D)(9) ofthe FDI act requires what? - ANSWER The FFEIC to issue guidelines establishing standards for the purpose of determining the acceptability of state reports of examination. 13. 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 - ANSWER 2 weeks 14. Alternate Exam Eligibility - ANSWER Composite 1, 2 Stable and improving 3 (confirmed by offsite analysis) Restrictions on all U, SU, and CU? 15. MACED - ANSWER monitoring asset growth capital restoration plan expansion approval distributions 16. ROAA - ANSWER annualized NOI / average assets 17. Management duties with BOLI? - ANSWER Analyze financial condition of carrier review performance of BOLI products at least annual Board report 18. Insurance Categories for Depositors? - ANSWER Single Joint Retirement Revocable trust ($250M per beneficiary) Irrevocable trust (each beneficiary $250M) 19. Exam deductions from CET1 - ANSWER Non loan losses (include ORE in short term) Provision expenses for ALLL Estimated cont. liab. loss Shortages Loss from criminal activity 20. Treatment of Category 1 & 2 cont. liab. loss estimated - ANSWER Other adjustments/deductions from CET1 21. Shared Loss exam cycle? - ANSWER Visit 30 days, visit 6 months, full scope 12 months exception TA &gt; 10x deposits acquired and rated 1/2 22. Workpaper retention - ANSWER BSA - 5 years Risk, IT, Trust questionnaires - 10 years Suspect questionnaires - indefinite Linesheets - one exam cycle most workpapers - one exam cycle (unless composite 3 or worse) 23. What Loans/LOC should be scoped at minimum? - ANSWER -SM or adversely classified LX -Internal problem credit list -Significant overdue loans -ID in minutes, audits, etc -Insider loans 24. Liquidity Program OFACMAPS - ANSWER Oversight Funding Audit CFP Monitoring Assets marketable Policies Stress Events 25. Part 365 lending standards PUAD - ANSWER Portfolio diversification Underwriting standards/LTV Administration procedures Documentation, approval, reporting 26. Capital directive response time - ANSWER 14 days 27. GAP ratio formula - ANSWER RSA - RSL / average earning assets 28. 15% 1 year gap, 2% rates drop = 30 bps dcrease NIM 29. ROAA (alt) - ANSWER post tax NI / average assets 30. Do limited scope exams/visitations assign CAMELS? - ANSWER Yes (can but not always) 31. Ineligible business (BSA exemptions) BEAT IT PRANO - ANSWER Business of ships, buses, aircraft