Risk Management Manual of Examination Policies - FDIC

REPORT OF EXAMINATION INSTRUCTIONS Section 16.1
PURPOSE
OFFICER'S QUESTIONNAIRE
The questionnaire is intended to obtain information that might not otherwise come to the examiner's attention during
the examination.
GENERAL
• Examiners are encouraged to provide bank management with a disk copy of the Officer's Questionnaire if the
bank has compatible word processing software. The questions are locked in tables and cannot be altered
without considerable effort.
• The Officer's Questionnaire should usually remain in the examination workpapers. It may be submitted with
the Report of Examination when there are circumstances that make including it appropriate. For example, the
Questionnaire should be included when the examiner suspects that an officer knowingly provided incorrect
information on the document.
• Most answers should be given since the date of the previous FDIC examination. However, when the question
specifies "since the last FDIC examination," examiners have the discretion to only request information since the
previous State examination, if a State Report is acceptable.
• Examiners may interpret questions to help management complete the questionnaire. If an answer is believed to
be in error, the signing officer may be permitted to correct the answer, provided the error is an oversight or
misunderstanding. The signing officer should initial all corrections.
• The questionnaire is an official document prepared by the institution. Do not alter it.
• The examiner has the flexibility to determine the as-of date for which the questionnaire is completed. The
questionnaire may be completed as of the Examination as of Date or the Examination Start Date. However,
under no circumstances should the banker be given the opportunity to complete the questionnaire as of a date
subsequent to receiving the questionnaire.
• Completion of the Questionnaire should be on a "consolidated" basis.
• Generally, the chief executive officer should sign the questionnaire. However, any executive officer, as defined
by Regulation O, may sign if no significant problems are anticipated.
• Answers can be listed on continuation pages when adequate space is not provided following the question.
Copies of institution documents are acceptable, provided they furnish at least the requested information and
contain original signatures. If printouts are voluminous, they may be provided separately from the Officer's
Questionnaire. The questionnaire should state that a complete listing was given to the examiner-in-charge.
QUESTION 1
The purpose of the question is to:
• Determine the extent of interest capitalization.
• Identify loans with potentially poor credit quality.
• Identify credit practices that may distort past-due information.
• Identify practices that may adversely impact the quality of the institution's reported earnings.
Forward affirmative answers to examiners reviewing loans. An excessive number of these loans may, depending on
the type of credits and management information systems, distort the institution's financial position by overstating
earnings and understating the past-due ratios. If there is a lengthy response to this question, it may be appropriate to
include comments regarding the accuracy of the past-due ratios on the RMA page. Excessive use of these practices
may warrant an ECC page comment.
DSC Risk Management Manual of Examination Policies 16.1-51 Report of Examination Instructions (12-04)
Federal Deposit Insurance Corporation