FDIC Examinations of Government-Guaranteed Loans

Submitting OIG:

Federal Deposit Insurance Corporation OIG

Date Issued:

Wednesday, May 10, 2023

Agency Reviewed / Investigated:

Federal Deposit Insurance Corporation

Submitting OIG-Specific Report Number:

EVAL-23-001

Location(s):

Agency-Wide

Type of Report:

Inspection / Evaluation

Special Projects:

Pandemic

Questioned Costs:

Funds for Better Use:

Number of Recommendations:

Report updated under NDAA 5274:

View Document:

Attachment	Size
EVAL-23-001-Redacted-508.pdf	9.88 MB

Recommendation Number	Recommendation Status	Significant Recommendation
1	Open	No
Develop 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 emerging risks.
2	Open	No
Develop 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.
5	Open	No
Issue 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.
6	Open	No
Ensure guidance on future Government-guaranteed loan programs includes all risks associated with such programs and has instructions to allow for consistency in supervisory activities.
8	Open	No
Revise 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
9	Open	No
Coordinate with the other Federal bank regulators to ensure uniform application of supervisory approaches to banks regarding concentrations and loan classification.
10	Open	No
Develop and implement a training plan to ensure examination staff are trained on the requirements and risks of Government-guaranteed loan programs.

Recommendation Number

Recommendation Status

Significant Recommendation

Additional Details

Open

Develop 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 emerging risks.

Open

Develop 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.

Open

Issue 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.

Open

Ensure guidance on future Government-guaranteed loan programs includes all risks associated with such programs and has instructions to allow for consistency in supervisory activities.