FDIC TE TEST STUDY GUIDE 2025/2026
ACCURATE QUESTIONS AND VERIFIED
CORRECT SOLUTIONS WITH RATIONALES
|| 100% GUARANTEED PASS
<RECENT VERSION>
1. What is included in tier 2 capital? - ANSWER ✓ ALLL up to 1.25% of risk-
weighted assets
qualifying preferred stock
Subordinated debt
Qualifying tier 2 minority interest, less any deductions in the tier 2
instrument of an unconsolidated financial institution.
2. What is the purpose of the FDIC conducting bank examinations? -
ANSWER ✓ To ensure public confidence in the banking system and to
protect the DIF
3. What should examiners do before discussing proposed ratings of a 3 or
worse rated bank? - ANSWER ✓ Contact the regional office to discuss with
the CM or the ARD
4. Sections 10(b) and 10(c) of the FDI do what? - ANSWER ✓ Empower
examiners to make thorough examination of the banks affairs
5. What is often the single most important factor of a successful operation of an
insured institution? - ANSWER ✓ The quality of management
6. Examination findings, including the composite and component ratings, are
subject to confidentiality under which regulation/rule? - ANSWER ✓ Part
309 of the FDIC rules and regs
,7. When should an examination letter be delivered to the CEO/President during
an exit meeting? - ANSWER ✓ for any bank newly assigned a CAMELS
composite 3 or worse
8. Under Section 10(d) of the FDI act, how often must insured branches of
foreign banks be examined? - ANSWER ✓ every 12 months
9. Section 347.211 of the FDIC rule and regs states that domestic branches of
foreign banks can be considered for examination every ___________
months? - ANSWER ✓ 18 months
10.Limited scope examinations should be performed how many months after an
enforcement action is issued? - ANSWER ✓ 6 months
11.When can examination schedules be extended to 18 months for a state
nonmember bank? - ANSWER ✓ ~the bank has total assets of $3 billion or
less
~ the bank is well capitalized as defined in 323.403(B)(1) of FDIC rules and
regs
~the ban was assigned a management rating of 1 or 2 at the last examination
~the ban was assigned a composite rating of 1 or 2 at the last exam
~the bank is not subject to formal enforcement proceedings or order by the
FDIC, OCC< or FRB
~no person acquired control of the bank during the preceding 12 months in
which the last full-scope examination was completed
12.Section 10(D)(9) ofthe FDI act requires what? - ANSWER ✓ The FFEIC to
issue guidelines establishing standards for the purpose of determining the
acceptability of state reports of examination.
13.How much times notice should a bank be given for notice of an up coming
examination and provided enough time to complete pre-examination request
- ANSWER ✓ 2 weeks
14.Alternate Exam Eligibility - ANSWER ✓ Composite 1, 2
Stable and improving 3 (confirmed by offsite analysis)
Restrictions on all U, SU, and CU?
,15.MACED - ANSWER ✓ monitoring
asset growth
capital restoration plan
expansion approval
distributions
16.ROAA - ANSWER ✓ annualized NOI / average assets
17.Management duties with BOLI? - ANSWER ✓ Analyze financial condition
of carrier
review performance of BOLI products
at least annual Board report
18.Insurance Categories for Depositors? - ANSWER ✓ Single
Joint
Retirement
Revocable trust ($250M per beneficiary)
Irrevocable trust (each beneficiary $250M)
19.Exam deductions from CET1 - ANSWER ✓ Non loan losses (include ORE
in short term)
Provision expenses for ALLL
Estimated cont. liab. loss
Shortages
Loss from criminal activity
20.Treatment of Category 1 & 2 cont. liab. loss estimated - ANSWER ✓ Other
adjustments/deductions from CET1
21.Shared Loss exam cycle? - ANSWER ✓ Visit 30 days, visit 6 months, full
scope 12 months
exception TA > 10x deposits acquired and rated 1/2
22.Workpaper retention - ANSWER ✓ BSA - 5 years
Risk, IT, Trust questionnaires - 10 years
Suspect questionnaires - indefinite
Linesheets - one exam cycle
, most workpapers - one exam cycle (unless composite 3 or worse)
23.What Loans/LOC should be scoped at minimum? - ANSWER ✓ -SM or
adversely classified LX
-Internal problem credit list
-Significant overdue loans
-ID in minutes, audits, etc
-Insider loans
24.Liquidity Program
OFACMAPS - ANSWER ✓ Oversight
Funding
Audit
CFP
Monitoring
Assets marketable
Policies
Stress Events
25.Part 365 lending standards
PUAD - ANSWER ✓ Portfolio diversification
Underwriting standards/LTV
Administration procedures
Documentation, approval, reporting
26.Capital directive response time - ANSWER ✓ 14 days
27.GAP ratio formula - ANSWER ✓ RSA - RSL / average earning assets
28.15% 1 year gap, 2% rates drop = 30 bps dcrease NIM
29.ROAA (alt) - ANSWER ✓ post tax NI / average assets
30.Do limited scope exams/visitations assign CAMELS? - ANSWER ✓ Yes
(can but not always)
31.Ineligible business (BSA exemptions)
BEAT IT PRANO - ANSWER ✓ Business of ships, buses, aircraft
ACCURATE QUESTIONS AND VERIFIED
CORRECT SOLUTIONS WITH RATIONALES
|| 100% GUARANTEED PASS
<RECENT VERSION>
1. What is included in tier 2 capital? - ANSWER ✓ ALLL up to 1.25% of risk-
weighted assets
qualifying preferred stock
Subordinated debt
Qualifying tier 2 minority interest, less any deductions in the tier 2
instrument of an unconsolidated financial institution.
2. What is the purpose of the FDIC conducting bank examinations? -
ANSWER ✓ To ensure public confidence in the banking system and to
protect the DIF
3. What should examiners do before discussing proposed ratings of a 3 or
worse rated bank? - ANSWER ✓ Contact the regional office to discuss with
the CM or the ARD
4. Sections 10(b) and 10(c) of the FDI do what? - ANSWER ✓ Empower
examiners to make thorough examination of the banks affairs
5. What is often the single most important factor of a successful operation of an
insured institution? - ANSWER ✓ The quality of management
6. Examination findings, including the composite and component ratings, are
subject to confidentiality under which regulation/rule? - ANSWER ✓ Part
309 of the FDIC rules and regs
,7. When should an examination letter be delivered to the CEO/President during
an exit meeting? - ANSWER ✓ for any bank newly assigned a CAMELS
composite 3 or worse
8. Under Section 10(d) of the FDI act, how often must insured branches of
foreign banks be examined? - ANSWER ✓ every 12 months
9. Section 347.211 of the FDIC rule and regs states that domestic branches of
foreign banks can be considered for examination every ___________
months? - ANSWER ✓ 18 months
10.Limited scope examinations should be performed how many months after an
enforcement action is issued? - ANSWER ✓ 6 months
11.When can examination schedules be extended to 18 months for a state
nonmember bank? - ANSWER ✓ ~the bank has total assets of $3 billion or
less
~ the bank is well capitalized as defined in 323.403(B)(1) of FDIC rules and
regs
~the ban was assigned a management rating of 1 or 2 at the last examination
~the ban was assigned a composite rating of 1 or 2 at the last exam
~the bank is not subject to formal enforcement proceedings or order by the
FDIC, OCC< or FRB
~no person acquired control of the bank during the preceding 12 months in
which the last full-scope examination was completed
12.Section 10(D)(9) ofthe FDI act requires what? - ANSWER ✓ The FFEIC to
issue guidelines establishing standards for the purpose of determining the
acceptability of state reports of examination.
13.How much times notice should a bank be given for notice of an up coming
examination and provided enough time to complete pre-examination request
- ANSWER ✓ 2 weeks
14.Alternate Exam Eligibility - ANSWER ✓ Composite 1, 2
Stable and improving 3 (confirmed by offsite analysis)
Restrictions on all U, SU, and CU?
,15.MACED - ANSWER ✓ monitoring
asset growth
capital restoration plan
expansion approval
distributions
16.ROAA - ANSWER ✓ annualized NOI / average assets
17.Management duties with BOLI? - ANSWER ✓ Analyze financial condition
of carrier
review performance of BOLI products
at least annual Board report
18.Insurance Categories for Depositors? - ANSWER ✓ Single
Joint
Retirement
Revocable trust ($250M per beneficiary)
Irrevocable trust (each beneficiary $250M)
19.Exam deductions from CET1 - ANSWER ✓ Non loan losses (include ORE
in short term)
Provision expenses for ALLL
Estimated cont. liab. loss
Shortages
Loss from criminal activity
20.Treatment of Category 1 & 2 cont. liab. loss estimated - ANSWER ✓ Other
adjustments/deductions from CET1
21.Shared Loss exam cycle? - ANSWER ✓ Visit 30 days, visit 6 months, full
scope 12 months
exception TA > 10x deposits acquired and rated 1/2
22.Workpaper retention - ANSWER ✓ BSA - 5 years
Risk, IT, Trust questionnaires - 10 years
Suspect questionnaires - indefinite
Linesheets - one exam cycle
, most workpapers - one exam cycle (unless composite 3 or worse)
23.What Loans/LOC should be scoped at minimum? - ANSWER ✓ -SM or
adversely classified LX
-Internal problem credit list
-Significant overdue loans
-ID in minutes, audits, etc
-Insider loans
24.Liquidity Program
OFACMAPS - ANSWER ✓ Oversight
Funding
Audit
CFP
Monitoring
Assets marketable
Policies
Stress Events
25.Part 365 lending standards
PUAD - ANSWER ✓ Portfolio diversification
Underwriting standards/LTV
Administration procedures
Documentation, approval, reporting
26.Capital directive response time - ANSWER ✓ 14 days
27.GAP ratio formula - ANSWER ✓ RSA - RSL / average earning assets
28.15% 1 year gap, 2% rates drop = 30 bps dcrease NIM
29.ROAA (alt) - ANSWER ✓ post tax NI / average assets
30.Do limited scope exams/visitations assign CAMELS? - ANSWER ✓ Yes
(can but not always)
31.Ineligible business (BSA exemptions)
BEAT IT PRANO - ANSWER ✓ Business of ships, buses, aircraft
