← oversight.gov IG reports

FDIC Examinations of Government-Guaranteed Loans

Inspection / Evaluation · Federal Deposit Insurance Corporation OIG · 2023-05-10 · about Federal Deposit Insurance Corporation

Report

Title
FDIC Examinations of Government-Guaranteed Loans
Submitting OIG
Federal Deposit Insurance Corporation OIG
Component agency
Federal Deposit Insurance Corporation
Type
Inspection / Evaluation
Publication date
2023-05-10

Recommendations (19)

#StatusText
1ClosedDevelop and implement guidance to examination staff on the credit, operational (including fraud), liquidity, and compliance risks related to Government-guaranteed loans to ensure staff adequately plans and conducts examinations to identify and address…
10ClosedDevelop and implement a training plan to ensure examination staff are trained on the requirements and risks of Government-guaranteed loan programs.
11ClosedUpdate, develop, and distribute to FDIC examination personnel a list of FDIC examiners who have significant experience examining banks that specialize in Government-guaranteed loan programs to regional offices.
12ClosedDevelop and implement a process to obtain improved data regarding Government-guaranteed lending activities of FDIC-supervised financialinstitutions.
13ClosedUpdate the [redacted] MOU to include the sharing of loan portfolio information such as historical loan performance, status of guaranty, and loan-level risk characteristics.
14ClosedEstablish arrangements with other Federal agencies that administer Government-guaranteed loan programs to facilitate information sharing andproactive identification of risk.
15ClosedDevelop and implement processes and procedures for the routine sharing, receipt, and storage of confidential information with Federal agencies that administer Government-guaranteed loan programs.
16ClosedDevelop and implement guidance to provide instruction to FDIC bank examination staff requiring communication and information sharing with Federal agencies that administer Government-guaranteed loan programs to ensure FDIC staff and the Federal…
17ClosedDetermine whether other Federal agencies that administer Government-guaranteed loan programs have a list of FDIC-supervised banks with high risk factors associated with such programs and develop protocols to share information with relevant FDIC…
18ClosedDevelop and implement guidance to ensure relevant risk information exchanged with Federal Government agencies that administer Government-guaranteed loan programs is shared internally within the FDIC on an ongoing basis with the appropriate FDIC…
19ClosedDevelop and implement updated FDIC examination guidance to establish an appropriate timeframe for uploading complete supervisory business records to RADD.
2ClosedDevelop and implement guidance to examination staff to ensure the staff consistently evaluate Government-guaranteed loans in their review of loan classification, assessment of off-balance sheet risk, concentration risk, and ongoing monitoring.
3ClosedUpdate and implement the Examination Profile Script to include additional questions on financial institution participation in Government-guaranteed loan programs in order to identify and address emerging risk.
4ClosedDevelop and implement additional items to the Safety and Soundness Request List to identify Government-guaranteed loans, the performance of those loans, and status of the guaranty.
5ClosedIssue and implement guidance to require that examination staff conduct a fraud risk assessment on future Government-guaranteed loan programs involving FDIC-insured and FDIC-supervised financial institutions to inform policy decisions.
6ClosedEnsure guidance on future Government-guaranteed loan programs includes all risks associated with such programs and has instructions to allow for consistency in supervisory activities.
7ClosedIssue and implement guidance for examiners clarifying the FDIC supervisory expectations for reviewing bank PPP activities, including the level of PPP loan volume triggering a heightened review, how examiners should assess the PPP activities of banks…
8ClosedRevise and implement FDIC guidance and practices for assessing concentrations and loan classification to ensure uniform application with the other Federal bank regulators of supervisory approaches to banks
9ClosedCoordinate with the other Federal bank regulators to ensure uniform application of supervisory approaches to banks regarding concentrations and loan classification.

Source

Authoritative
oversight.gov report page
Machine
JSON-LD · Markdown