Federal Deposit Insurance
Corporation
550 17th Street NW, Washington, DC 20429-9990
Financial Institution Letter
FIL-22-2012
June 7, 2012
SUPERVISORY INSIGHTS JOURNAL
Summer 2012 Issue Now Available
Summary: The Summer 2012 issue of Supervisory Insights features articles of critical interest to examiners, bankers,
and supervisors. These articles include a discussion of the importance of open communication between regulators and
community bankers to an effective supervisory process, an overview of the credit-related stress-testing process for
community banks, a summary of recent results from the FDIC's Credit and Consumer Products/Services Survey; and a
summary of the accounting for troubled debt restructurings. The publication is available
at http://www.fdic.gov/regulations/examinations/supervisory/insights/index.html
Statement of Applicability to Institutions Under $1 Billion in Total Assets: The information contained in this issue
of Supervisory Insights may be of general interest to FDIC-insured financial institutions, but it is not supervisory
guidance.
Distribution:
FDIC-Supervised Institutions
Suggested Routing:
Chief Executive Officer
Compliance Risk Officer
Related Topics:
Community Banking
Risk Management Examination
Stress Testing
Credit and Consumer Products/Services
Survey
Troubled Debt Restructurings
Contact:
Kim E. Lowry, Managing Editor
(klowry@fdic.gov or 202-898-6635)
Note:
FDIC Financial Institution Letters (FILs)
may be accessed from the FDIC's Web
site at
www.fdic.gov/news/news/financial/2012/i
ndex.html.
To receive FILs electronically, please
visit http://www.fdic.gov/about/
subscriptions/fil.html.
Paper copies may be obtained through
the FDIC's Public Information Center,
3501 Fairfax Drive, E-1002, Arlington,
VA 22226 (1-877-275-3342 or 703-562-
2200).
Highlights:
"The Risk Management Examination and Your Community Bank"
emphasizes the importance of open communication between regulators
and community bankers to an effective supervisory process, provides an
overview of the examination and application processes, and suggests
ways to enhance communication between bankers and supervisors and
help banks better navigate their examinations.
"Stress Testing Credit Risk at Community Banks" describes the credit-
related stress-testing process, discusses its usefulness in managing
risk, and provides simple examples of how community banks can
conduct stress testing.
"Results from the FDIC's Credit and Consumer Products/Services
Survey: Focus on Lending Trends" shares recent Survey results,
including trends in underwriting, factors influencing banks' ability and
willingness to lend, use of loan workouts, and loan growth patterns
across the country.
"Accounting for Troubled Debt Restructurings" provides a summary of
the accounting for troubled debt restructurings, including a discussion of
regulatory reporting issues.
Suggestions for article topics and requests for permission to reprint
articles should be e-mailed to supervisoryjournal@fdic.gov. Requests for
print copies should be e-mailed to publicinfo@fdic.gov.
.Inactive
Corporation
550 17th Street NW, Washington, DC 20429-9990
Financial Institution Letter
FIL-22-2012
June 7, 2012
SUPERVISORY INSIGHTS JOURNAL
Summer 2012 Issue Now Available
Summary: The Summer 2012 issue of Supervisory Insights features articles of critical interest to examiners, bankers,
and supervisors. These articles include a discussion of the importance of open communication between regulators and
community bankers to an effective supervisory process, an overview of the credit-related stress-testing process for
community banks, a summary of recent results from the FDIC's Credit and Consumer Products/Services Survey; and a
summary of the accounting for troubled debt restructurings. The publication is available
at http://www.fdic.gov/regulations/examinations/supervisory/insights/index.html
Statement of Applicability to Institutions Under $1 Billion in Total Assets: The information contained in this issue
of Supervisory Insights may be of general interest to FDIC-insured financial institutions, but it is not supervisory
guidance.
Distribution:
FDIC-Supervised Institutions
Suggested Routing:
Chief Executive Officer
Compliance Risk Officer
Related Topics:
Community Banking
Risk Management Examination
Stress Testing
Credit and Consumer Products/Services
Survey
Troubled Debt Restructurings
Contact:
Kim E. Lowry, Managing Editor
(klowry@fdic.gov or 202-898-6635)
Note:
FDIC Financial Institution Letters (FILs)
may be accessed from the FDIC's Web
site at
www.fdic.gov/news/news/financial/2012/i
ndex.html.
To receive FILs electronically, please
visit http://www.fdic.gov/about/
subscriptions/fil.html.
Paper copies may be obtained through
the FDIC's Public Information Center,
3501 Fairfax Drive, E-1002, Arlington,
VA 22226 (1-877-275-3342 or 703-562-
2200).
Highlights:
"The Risk Management Examination and Your Community Bank"
emphasizes the importance of open communication between regulators
and community bankers to an effective supervisory process, provides an
overview of the examination and application processes, and suggests
ways to enhance communication between bankers and supervisors and
help banks better navigate their examinations.
"Stress Testing Credit Risk at Community Banks" describes the credit-
related stress-testing process, discusses its usefulness in managing
risk, and provides simple examples of how community banks can
conduct stress testing.
"Results from the FDIC's Credit and Consumer Products/Services
Survey: Focus on Lending Trends" shares recent Survey results,
including trends in underwriting, factors influencing banks' ability and
willingness to lend, use of loan workouts, and loan growth patterns
across the country.
"Accounting for Troubled Debt Restructurings" provides a summary of
the accounting for troubled debt restructurings, including a discussion of
regulatory reporting issues.
Suggestions for article topics and requests for permission to reprint
articles should be e-mailed to supervisoryjournal@fdic.gov. Requests for
print copies should be e-mailed to publicinfo@fdic.gov.
.Inactive