The spring 2023 financial crisis is still affecting bank examinations (and ratings). Each of the regulatory Agencies either has already toughened their examination escalation procedures or is in the process of doing so. Management items requiring attention or formal actions are becoming more common as reactions occur within the bank's portfolio due to prior economic turbulence. Whether it is to assess the financial institution's Credit Risk Management, Allowance for Credit Losses, or the accuracy of its records to demonstrate safety and soundness, the examination often results in comments regarding the Call Report.

Lately, examiner scrutiny is focused on accurate regulatory reporting as it is impacted by loan classification, allowances, and other re-classifications. We will look at examples of exam findings and discuss how to address these findings at the bank.What You'll Learn:Examples of Exam Findings:

• Designation and training of reporting personnel
  
• Credit Risk Management including identification of non-accrual loans
  
• Appropriate and adequate Allowance for Credit Losses
  
• Requirement for independent Third-Party Review
  
• Unexplained Variances
  
• Intangible Assets
  
• Concentration of Credit Monitoring based on loan codes

A Summary of Call Report Best Practices including:

• Materiality for amended Call Reports
  
• Call Report Workpapers
  
• Documenting amended Call Reports
  
• Books and Records Program or Call Report Policies and Procedures
  
• Sustainable reporting throughout the Bank
  
• Training
  
• Archiving Tips
  
• Exam Response tracking