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Financial Institution Letter

Supervisory Insights Journal Summer 2013 Issue Now Available

June 6, 2013
Notes
 
Summary: The Summer 2013 issue of Supervisory Insights features articles of critical interest to examiners, bankers, and supervisors. These articles include an overview of the new creditworthiness standards for investment securities with an emphasis on how to conduct credit risk due diligence, the heightened importance of bank information technology examinations, and the importance of ensuring compliance with consumer protection rules and regulations during the planning process for mergers and acquisitions. The publication is available at http://www.fdic.gov/regulations/examinations/supervisory/insights/index.html

Statement of Applicability to Institutions with Total Assets under $1 Billion: The information contained in this issue of Supervisory Insights may be of general interest to FDIC-supervised financial institutions, but it is not supervisory guidance.

Highlights:
  • "Credit Risk Assessment of Bank Investment Portfolios" looks at how new creditworthiness standards for investment securities reinforce the importance of proper due diligence by financial institutions. This article discusses supervisory expectations for credit risk due diligence of the investment portfolio, provides examples of how to conduct due diligence, and lists questions examiners may consider when assessing an institution's credit risk management practices.
  • "The Evolution of Bank Information Technology Examinations" describes how information technology (IT) examinations serve as a critical tool for helping bankers mitigate IT risk.
  • "Mergers and Acquisitions: A Compliance Perspective" highlights issues related to compliance with consumer protection rules and regulations that are a critical aspect of planning for financial institution mergers and acquisitions. This article identifies issues for bankers to consider when conducting compliance-focused due diligence.
  • Suggestions for article topics and requests for permission to reprint articles should be e-mailed to supervisoryjournal@fdic.gov . Requests for print copies should be e-mailed to publicinfo@fdic.gov .

Distribution:
FDIC-Supervised Institutions

Suggested Routing:
Chief Executive Officer
Compliance Officer

Note:
FDIC Financial Institution Letters (FILs) are available on the FDIC's Web site at www.fdic.gov/news/financial-institution-letters/2013/index.html .

To receive FILs electronically, visit http://www.fdic.gov/about/subscriptions/fil.html .

Paper copies may be obtained through the FDIC's Public Information Center, 3501 Fairfax Drive, E-1002, Arlington, VA 22226 (1-877-275-3342 or 703-562-2200).

Additional Related Topics:

  • Due diligence for purchases of investment securities
  • Information technology examinations
  • Mergers and acquisitions
  • Consumer protection rules and regulations
FIL-22-2013

Last Updated: June 6, 2013