FDIC /
Basic
/ /
Concepts
/ /
Exam Questions With Correct Answers
/ // // // //
What /
/is /
/the /
/rationale /
/of //bank //examinations? //* //- //correct //answer(s) //✔✔ //1. //Maintain //Public //Confidence
2. //Safeguarding //the //DIF
3. //Identifying //undue //risk //& //weak //risk //management //practices
4. //Evaluating //adherence //to //laws //and //regulations
5. //Identifying //the //cause //and //severity //of //problems
What /
/gives /
/examiners /
/power /
/to /
/examine /
/banks? //- /
/correct /
/answer(s) /
,/✔✔ /
/Sections /
/10(b) /
/and /
/(c) /
/of /
/the /
/FDI /
/Act /
/empower //examiners //to //make //a //thorough //examination //of //all //of //the //affairs //of //a //bank.
What /
/is /
/UFIRS /
/and /
/what /
/is /
/its /
/purpose?, //- /
/correct /
/answer(s) /
/✔✔ //UFIRS //is //the //Uniform //Financial //Institution //Rating //System. //Its //purpose //is //to:
• //Ensure //that //all //banks //are //evaluated //in //a //comprehensive //and //uniform //manner
• //Assist //in //identifying //problem //or //deteriorating //banks
• //Categorize //institutions //with //deficiencies //in //particular //component //areas
•/
/Assist /
/congress /
/in /
/following //S //&S //trends //and //assess //the //strength //and //soundness //of //the //financial //industry
•/
/Assist /
/the /
/agencies /
/in /
,/fulfilling /
/their /
/collective //mission //of //maintaining //stability //and //public //confidence //in //the //nation's //financial
//system
How /
/should /
/ratings /
/be /
/disclosed /
/to /
/management? //- /
/correct /
/answer(s) /
/✔✔ /
/Discuss /
/recommended /
/component /
/and /
/composite /
/ratings //with //senior //management //within //close //proximity //to //examination //conclusion.
• //Explain //tentative //and //subject //to //RD //approval
• //Discuss //ratings //for //a //3 //rated //bank //with //the //RO
• //Quality //of //management //is //often //the //single //most //important //element
• //Discuss //factors //considered
• //Not //numerical //average
• //Confidentiality //of //Part //309
What /
/does /
/the //examination //letter //for //troubled //institutions //communicate? //- //correct //answer(s) //✔✔ //•
//Should /
/be /
, /delivered /
/by /
/the /
/FS //during //the //exit //meeting //or //earlier //for //newly //assigned //composite //3 //ratings //or //worse
•/
/Should //convey //the //expectation //that //management //stabilize //and //strengthen //the //condition
• //They //are //required //to //obtain //a //non-
objection /
/from /
/RD /
/to /
/materially /
/change /
/balance /
/sheet /
/composition, //such //as //significantly //increasing //total //assets //or //volatile //funding //sources
What /
/are /
/the /
/examination /
/priorities /
/and //frequency //schedules? //- //correct //answer(s) //✔✔ //• //Priority //is //the //effective //surveillance
//and //supervision //of //banks //requiring //special //supervisory //attention.
• //Section //337.12, //which //implements //Section //10(d) //of //the //FDI //Act, //requires //a //full-
scope /
/onsite /
/examination //of //every //insured //state //nonmember //bank //at //least //once //during //each //12-
month //period.
When /
/may /
/examination /
/intervals /
/be /
Basic
/ /
Concepts
/ /
Exam Questions With Correct Answers
/ // // // //
What /
/is /
/the /
/rationale /
/of //bank //examinations? //* //- //correct //answer(s) //✔✔ //1. //Maintain //Public //Confidence
2. //Safeguarding //the //DIF
3. //Identifying //undue //risk //& //weak //risk //management //practices
4. //Evaluating //adherence //to //laws //and //regulations
5. //Identifying //the //cause //and //severity //of //problems
What /
/gives /
/examiners /
/power /
/to /
/examine /
/banks? //- /
/correct /
/answer(s) /
,/✔✔ /
/Sections /
/10(b) /
/and /
/(c) /
/of /
/the /
/FDI /
/Act /
/empower //examiners //to //make //a //thorough //examination //of //all //of //the //affairs //of //a //bank.
What /
/is /
/UFIRS /
/and /
/what /
/is /
/its /
/purpose?, //- /
/correct /
/answer(s) /
/✔✔ //UFIRS //is //the //Uniform //Financial //Institution //Rating //System. //Its //purpose //is //to:
• //Ensure //that //all //banks //are //evaluated //in //a //comprehensive //and //uniform //manner
• //Assist //in //identifying //problem //or //deteriorating //banks
• //Categorize //institutions //with //deficiencies //in //particular //component //areas
•/
/Assist /
/congress /
/in /
/following //S //&S //trends //and //assess //the //strength //and //soundness //of //the //financial //industry
•/
/Assist /
/the /
/agencies /
/in /
,/fulfilling /
/their /
/collective //mission //of //maintaining //stability //and //public //confidence //in //the //nation's //financial
//system
How /
/should /
/ratings /
/be /
/disclosed /
/to /
/management? //- /
/correct /
/answer(s) /
/✔✔ /
/Discuss /
/recommended /
/component /
/and /
/composite /
/ratings //with //senior //management //within //close //proximity //to //examination //conclusion.
• //Explain //tentative //and //subject //to //RD //approval
• //Discuss //ratings //for //a //3 //rated //bank //with //the //RO
• //Quality //of //management //is //often //the //single //most //important //element
• //Discuss //factors //considered
• //Not //numerical //average
• //Confidentiality //of //Part //309
What /
/does /
/the //examination //letter //for //troubled //institutions //communicate? //- //correct //answer(s) //✔✔ //•
//Should /
/be /
, /delivered /
/by /
/the /
/FS //during //the //exit //meeting //or //earlier //for //newly //assigned //composite //3 //ratings //or //worse
•/
/Should //convey //the //expectation //that //management //stabilize //and //strengthen //the //condition
• //They //are //required //to //obtain //a //non-
objection /
/from /
/RD /
/to /
/materially /
/change /
/balance /
/sheet /
/composition, //such //as //significantly //increasing //total //assets //or //volatile //funding //sources
What /
/are /
/the /
/examination /
/priorities /
/and //frequency //schedules? //- //correct //answer(s) //✔✔ //• //Priority //is //the //effective //surveillance
//and //supervision //of //banks //requiring //special //supervisory //attention.
• //Section //337.12, //which //implements //Section //10(d) //of //the //FDI //Act, //requires //a //full-
scope /
/onsite /
/examination //of //every //insured //state //nonmember //bank //at //least //once //during //each //12-
month //period.
When /
/may /
/examination /
/intervals /
/be /
