Capital Markets Examiner School, Providence, RI

Purpose of the Independent Review

 To provide you with assurance that the highly technical process of interest rate risk modeling is completed properly

 To provide you with assurance that the projected effects to your earnings and balance sheet is as accurate as possible, and that changes you make today will not have negative impacts in the future

Joint Agency Policy Statement on Interest Rate Risk (1996)

 Effective control of the interest rate risk management process includes independent review and, where appropriate, internal and external audit.

 Periodic reviews of its risk management process to ensure its integrity, accuracy, and reasonableness.

 Findings of the review should be reported to the Board on an annual basis