Program Overview
Loan Analysis School introduces participants to the loan review process. Through a combination of computer-based instruction and participation in a related skills-practice workshop, participants learn how to review and classify individual loans. Specifically, participants learn how to analyze financial statements, calculate and interpret cash flow, and assess the appropriateness of loan structure, pricing, and documentation. Participants analyze a series of loans, prepare for and conduct loan discussions, make loan classification decisions, and compose loan write-ups.
Skills Taught
By the end of this course, students will have been taught how to:
- Review a loan file for creditworthiness
- Analyze financial statements
- Document any weaknesses or issues on a loan line sheet
- Prepare for, and conduct, a loan discussion
- Determine appropriate loan classifications
- Prepare a loan write-up using the 6P format
- Identify apparent violations of lending laws, rules, and regulations
Duration and Format
This course contains:
- 20 hours of Pre-Course Work - Computer-based Instruction (CBI)
- 2 week facilitated classroom discussion/lectures and small group activities
Level and Credits
Basic
Continuing Education Unit (CEU): 7.0
Continuing Professional Education Unit (CPE): 83.6
Target Audience
This course is open to appropriate staff of the FDIC and partner government regulatory agencies. This course is not open to the public or staff of private banks.
FDIC participants should attend in accordance with the parameters outlined in the Examiner Training and Development Policy. Prior to attendance, participants must demonstrate competent performance in balance sheet analysis; investment portfolio analysis; earnings analysis; internal routines and control analysis; Call Report analysis; and Uniform Bank Performance Report analysis. This also includes unassisted preparation of Report-quality comments for Capital, Earnings, Liquidity, and Sensitivity to Market Risk. Participants must have a firm working knowledge of Microsoft Word and Excel and be able to work effectively in a team environment.
NOTE: The minimum interval between the Asset Liability Management School and the Loan Analysis School is four months.
Prerequisites and Prior Work Experience
Participants must have participated in the following loan-related activities prior to attending the course:
- Read the Loan section of the Risk Management Manual of Examination Policies
- Reviewed the documentation within a typical commercial loan file
- Observed loan discussions
- Reviewed loan write-ups included in a Report of Examination and discussed them with an experienced examiner (minimum of 2 write-ups)
Pre-Course Assignment
The items below constitute the pre-course assignments. The Self Study must be completed the Friday prior to attending the course. Prior to attending the workshop, participants are required to complete the following pre-course assignments:
- Complete the Loan Analysis School Pre-Course Self-Study located within the FDIC Learning Experience (FLX). It is recommended that students review the self-study the week prior to attending the course and must have the self-study completed the Friday prior to attending the course.
- Complete the Participant Profile. The pre-course profile is due in general two weeks/11 business days prior to the start of the session.
Post Course Recommendation and Feedback
The participants should review and discuss loans at several upcoming examinations, as well as be given the opportunity to prepare loan write-ups to reinforce skills learned at this school. A written assessment of the participant's performance is submitted to each participant's field supervisor or training contact approximately 30 days after the conclusion of the school.
More Information
For information regarding administrative policies such as complaints and refunds, please contact Corporate University, Attn: NASBA Representative Ava Livas, Room A-3025, 3501 North Fairfax Drive, Arlington, VA 22226 (703) 562-2463.
The Federal Deposit Insurance Corporation is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: NASBARegistry.org
The Federal Deposit Insurance Corporation (FDIC) is accredited by the International Association for Continuing Education and Training (IACET) (www.iacet.org). The FDIC complies with the ANSI/IACET Standard, which is recognized internationally as a standard of excellence in instructional practices. As a result of this accreditation, the FDIC is accredited to issue the IACET CEU.
For more information concerning course content and administration, please contact Mariah Candrian or Helen Briggs.