1.1 Basic Examination Concepts and Guidelines

• Rationale of Bank Examinations
• Conduct of Examinations
• The Uniform Financial Institutions Rating System
• Examination Frequency
• Examination Types
• Coodination with Other Agencies
• Scheduling Guidelines
• Guidelines for Relying on State Examinations
• Pre-Examination Activities
• Examiner Meeting with Bank Management
• Other Sources of Examination Information and Policy Guidance
• Disclosure of Reports of Examination
• Examination Workpapers

Part II - Camels

2.1 Capital

• Introduction
• Capital
• Contingent Liabilities
• Evaluation of a Bank's Capital Adequacy
• Rating the Capital Factor

3.1 Asset Quality

• Introduction
• Evaluation of Asset Quality
• Rating the Asset Quality Factor

3.2 Loans

• Introduction
• Loan Administration
• Portfolio Composition
• Other Credit Issues
• Loan Problems
• Loan Appraisal and Classification
• Concentrations
• Federal Funds Sold and Repurchase Agreements
• Fundamental Legal Concepts and Definitions
• Consideration of Bankruptcy as it Relates to Collectability of a Debt
• Syndicated Lending
• Credit Scoring
• Subprime Lending

3.3 Securities and Derivatives

• Introduction
• Policies, Procedures, and Risk Limits
• Internal Controls
• Unsuitable Investment Activities
• Risk Identification, Measurement, and Reporting
• Board and Senior Management Oversight
• Compliance
• Report of Examination Treatment
• Other Guidance
• Investment Strategies
• Market Risk Modification Strategies
• Accounting Guidance
  

3.4 Cash and Due from Banks

• Types of Accounts
• Examination Objectives
• Examination Procedures

3.5 Premises and Equipment

• Definitions
• Fixed Assets Accounting
• Extent of Fixed Assets Investment
• Analysis of Fixed Assets
• Fire and Extended Coverage on Bank Premises, Furniture and Equipment
• Examination Procedures

3.6 Other Real Estate

• Other Real Estate
• Other Real Estate Reserves

3.7 Other Assets and Liabilities

• Introduction
• Other Assets
• Other Liabilities

3.8 Off-Balance Sheet Activities

• Introduction
• Off-Balance Sheet Items and Derivatives
• Off Balance Sheet Lending Activities
• Off-Balance Sheet Asset Transfers
• Off-Balance Sheet Contingent Liabilities
• Adversely Classified Contingent Liabilities

4.1 Management

• Introduction
• Management/Directors
• Federal Banking Laws and Regulations Primarily Pertaining to Bank Directors
• Other Issues
• Evaluation of Management
• Rating the Management Factor

4.2 Internal Routine and Controls

• Introduction
• Basic Elements of an Internal Control System
• Audit
• Corporate Governance
• The Examiner's Responsibilities
• Other Related Matters

4.3 Related Organizations

• Definitions and Authorities
• Gramm-Leach Bliley Act
• Examination Authority
• Bank Holding Companies
• Parent Companies which Are Not Bank Holding Companies
• Holding Company Effect on Subsidiary Banks
• Tying Arrangements
• Chain Banking Groups
• Affiliates
• Subsidiaries
• Examination of Subsidiaries
• Examination and Investigaton of Unaffiliated Third Party Servicers

4.4 Fidelity and Other Indemnity Protection

• Introduction
• Fidelity Insurance Protection
• Other Desirable Insurance Coverage

4.5 Violations of Laws and Regulations

• Introduction
• Basic Causes and Significance of Violations
• Scheduling Violations
• Types of Violations
• Contraventions of FDIC Statements of Policy
• Violations and the Evaluations of Bank Management

4.6 Miscellaneous Banking Activities

• Remote Disbursement Activities and Zero-Balance Accounts
• Funds Transfer System Risk

5.1 Earnings

• Introduction
• Evaluation of Earnings Performance
• Rating the Earnings Factor

6.1 Liquidity and Funds Management

• Introduction
• Liquidity Management
• Warning Indicators and Contingency Liquidity Plan
• Funding Sources: Assets
• Funding Sources: Liabilites
• The Role of Capital and the Bank Holding Company
• Evaluation of a Bank's Liquidity
• Rating the Liquidity Factor

7.1 Sensitivity to Market Risk

• Introduction
• Examination Standards and Goals
• Types of Interest Rate Risk
• Management Responsibilities
• IRR Measurement Methods
• IRR Measurement System Review
• Variance Analysis
• Other Market Risk Factors
• Evaluation of a Bank’s Sensitivity to Market Risk
• Rating the Sensitivity to Market Risk Factor
• Market Risk Glossary

Part III - Other Examination Issues

8.1 Bank Secrecy Act, Anti-Moneylaundering and Office of Foreign Assets Control

• Introduction to the Bank Secrecy Act
• Financial Crimes Enforcement Network Reports and Recordkeeping Requirements
• Customer Identification Program
• Special Information Sharing Procedures to Deter Money Laundering and Terrorist Activities
• Customer Due Diligence
• Banking Services and Activities with Greater Potential for Money Laundering and Enhanced Due Diligence Procedures
• Monitoring Bank Secrecy Act Compliance
• BSA Violations and Enforcement
• Identification of Suspicious Transactions
• Suspicious Activity Reporting
• Office of Foreign Assets Control
• Examples of Proper Citation of Apparent Violations of the BSA Related Regulations in the Report of Examination
• Web-Site References

9.1 Bank Fraud and Insider Abuse

• Introduction
• Subject Areas
• Corporate Culture/Ethics
• lnsider Transactions
• Loan Participations
• Real Estate Lending
• Secured Lending
• Third Party Obligations
• Lending to Buy Tax Shelter Investments
• Linked Financing/Brokered Deposits
• Credit Cards and ATM Transactions
• Advance Fee Schemes
• Offshore Transactions
• Wire Transfers
• Money Laundering
• Securities Trading Activities
• Miscellaneous

10.1 Suspicious Activity and Criminal Violations

• Introduction
• Bank Management’s Role
• The Examiner’s Role
• Interagency Cooperation
• Examiner Assistance to Federal Law Enforcement Authorities
• Federal Grand Jury Subpoenas
• Safeguarding and Documenting Evidence
• Notification to the Bonding Company
• Other Matters of Importance
• Criminal Statutes

11.1 International Banking

• Introduction
• Country Risk Management
• International Activities
• Supervision of U.S. Operations of Foreign Banks and Other International Banking Entities
• Laws and Regulations
• Glossary of International Banking Terminology

12.1 Formal Administrative Actions

• Applications for Deposit Insurance
• Applications to Establish a Branch or to Move Main Office or Branch
• Applications for Consent to Exercise Trust Powers
• Change in Bank Control Act
• Application for Retirement of Capital
• Applications for Mergers
• Applications by Undercapitalized Depository Institutions for a Waiver to Accept, Renew or Rollover Brokered Deposits
• Policy Statement on Encouragement and Preservation of Minority Ownership of Financial Institutions
• Applications Pursuant to Section 19 of the FDI Act – Crimes Involving Dishonesty or Breach of Trust or Money Laundering, or Pretrial Diversion Programs for Such Offenses
• Applications Pursuant to Part 362 of the FDIC’s Rules and Regulations – Activities and Investments of Insured Depository Institutions
• Other Applications

Part IV - Administrative & Enforcement Actions

13.1 Memorandums of Understanding

• Introduction

14.1 Civil Money Penalties

• Introduction
• Violations
• Assessment of Civil Money Penalties
• Examination Procedures
• Other Considerations
• Guidelines for Using the CMP Matrix

15.1 Formal Administrative Actions

• Introduction
• Reports of Examination Containing a Basis for Section 8 Charges
• Unsafe or Unsound Practices
• Section 8(a) - Termination of Insurance
• Cease and Desist Proceedings
• Suspension and Removal Procedures
• Use of Written Agreements and Capital Directives
• Prompt Corrective Action Directive
• Orders to Correct Safety and Soundness Deficiencies
• Capital Plans

Part V - Examination Report

16.1 Report of Examination Instructions

General Instructions

• Inventory of Report Pages
• Examination Conclusions and Comments (ECC)
• Compliance with Enforcement Actions
• Risk Management Assessment
• Violations of Laws and Regulations
• Information Technology Assessment (ITA)
• Fiduciary Activities Assessment (FAA)
• Examination Data and Ratios (EDR)
• Comparative Statements of Financial Condition
• Loan and Lease Financing Receivables
• Recapitulation of Securities
• Items Subject to Adverse Classification
• Items Listed for Special Mention
• Analysis of Loans Subject to Adverse Classification
• Analysis of Other Real Estate Owned Subject to Adverse Classification
• Assets with Credit Data or Collateral Documentation Exceptions
• Concentrations
• Capital Calculations
• Analysis of Earnings
• Comparative Statements of Income and Changes in Equity Capital Accounts
• Relationships with Affiliates and Holding Companies
• Extensions of Credit to Directors/Trustees, Officers, Principal Shareholders, and Their Related Interests
• Signatures of Directors/Trustees
• Officer's Questionnaire
• Officer's Questionnaire (Bank Secrecy Act)
• Confidential – Supervisory Section
• In-House Information Technology
• Trust Supervisory Section (Short Form)
• Directors/Trustees and Officers
  

International Report Pages and Workpapers

• International Report Pages -- Country Risk
• International Report Page Transfer Risks Subject to Classification or Comment
• International Report Page Analysis of the Country Exposure Management System
• International Report Page Selected Concentrations of Country Exposures
• International Workpapers
• International Workpaper International Loans, Acceptances, and Letter of Credit – Distribution
• International Workpaper International Loans, Acceptances, and Letters of Credit – Questionnaire
• International Workpaper Eurocurrency Operations
• International Workpaper Foreign Exchange Activities
• International Workpaper Position Analysis – Major Currency Positions
• International Workpaper Position Analysis – Other Currencies
• International Workpaper Maturity Distribution (Gap) Analysis
• International Workpaper Revaluation and Income/Loss Analysis
• International Workpaper Income/Loss Schedule
• International Workpaper Policies and Procedures
• International Workpaper Audit and Internal Controls – Audit
• International Workpaper Audit and Internal Controls – Internal Controls
• International Workpaper Parallel-Owned Banking Organizations (PBO)

Appendix A Abbreviations

Appendix B Report of Examination Grammar and Punctuation Guide

17.1 Bank of Anytown-Report of Examination

Examination Conclusions and Comments

• Compliance with Enforcement Actions
• Risk Management Assessment
• Violations of Laws and Regulations
• Information Technology Assessment
• Fiduciary Activities Assessment
• Examination Data and Ratios
• Comparative Statements of Financial Condition
• Loans and Lease Financing Receivables
• Recapitulation of Securities
• Items Subject to Adverse Classification
• Items Listed for Special Mention
• Analysis of Loans Subject to Adverse Classification
• Analysis of Other Real Estate Owned Subject to Adverse Classification
• Assets with Credit Data or Collateral Documentation Exceptions
• Concentrations
• Capital Calculations
• Analysis of Earnings
• Comparative Statements of Income and Changes in Equity Capital Accounts
• Relationships with Affiliates and Holding Companies
• Extensions of Credit to Directors/Trustees, Officers, Principal Shareholders, and Their Related Interests
• Signatures of Directors/Trustees
• Confidential - Supervisory Section
• In-House Information Technology
• Trust Supervisory Section (Short Form)
• Directors/Trustees and Officers

International Report Pages and Workpapers

• Transfer Risks Subject to Classification or Comment
• Analysis of the Country Exposure Management System
• Selected Concentrations of Country Exposure
• International Loans, Acceptances, and Letters of Credit - Distribution
• International Loans, Acceptances, and Letters of Credit - Questionnaire
• Eurocurrency Operations
• Foreign Exchange Activities
• Position Analysis - Major Currency Positions
• Position Analysis - Other Currencies
• Maturity Distribution (GAP) Analysis
• Revaluation and Income/Loss Analysis
• Income/Loss Schedule
• Policy and Procedures
• Audit and Internal Controls - Audit
• Audit and Internal Controls - Internal Controls
• Parallel-Owned Banking Organization (PBO)

18.1 Report of Investigation Instructions

General Instructions

• References
• Application Processing
• Report of Investigation Procedures
• Statutory Factors
• Miscellaneous Report Issues
• Cover - Report of Investigation
• Table of Contents
• Investigation Report Conclusions and Recommendations
• Financial History and Condition
• Adequacy of the Capital Structure
• Earning Prospects
• General Character of Management
• Risk to the Funds
• Convenience and Needs of the Community to be Served
• Consistency of Corporate Powers
• Other Matters
• Investigation Report Summary
• Appendix A
• Management/Director Interview Form
• Community/Competition Interview Questionnaire

19.1 Bank of Anytown-Report of Investigation

Conclusions and Recommendations

• Investigation Report Conclusions and Recommendations

Assessment

• Financial History and Condition
• Adequacy of the Capital Structure
• Future Earnings Prospects
• General Character of the Management
• Risk to the Funds
• Convenience and Needs of the Community to be Served
• Consistency of Corporate Powers

Other

• Other Pertinent Information
• Investigation Report Summary