BAS Presentations - March 2023

11 [Non ‐ core funding sources] may not be available in times of financial stress and can lead to liquidity shortfalls.” ” ‐ Office of Inspector General (Summary Analysis of Failed Banks)

Most likely caused by asset quality problems

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12 Evaluation of an institution’s lending policies, credit administration, and the quality of the loan portfolio is among the most important aspects of the examination process. To a great extent, the quality of an institution's loan portfolio determines the risk to depositors and to the FDIC's insurance fund. Conclusions regarding the institution’s condition and the quality of its management are weighted heavily by the examiner's findings with regard to lending practices. ” ‐ FDIC Risk Management Manual

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