Risk Management Manual of Examination Policies May 2020 Update
May 19, 2020 / Source: FDIC
Risk Management Manual of Examination Policies
May 2020 Update
The RMS Manual provides FDIC examiners information relating to examination activities and supervisory practices. The FDIC conducts examinations at financial institutions to ensure public confidence in the banking system and to protect the Deposit Insurance Fund. The RMS Manual promotes consistency in examination activities, which center on evaluating an institution’s capital, assets, management, earnings, liquidity, sensitivity to market risk, and adherence to laws and regulations.
- Section 16.1 – Report of Examination Instructions: This section was updated to accommodate those financial institutions that have adopted the Current and Expected Credit Losses (CECL) methodology as well as those institutions that have elected to report capital under the community bank leverage ratio (CBLR) framework. Other changes were made to update instructions for developing the report of examination, including those related to accounting changes for investments in equity securities.