Seal of the Board of Governors of the Federal Reserve System
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM

WASHINGTON, D. C.  20551

DIVISION OF BANKING
SUPERVISION AND REGULATION


SR 94-7 (FIS)
January 27, 1994


TO THE OFFICER IN CHARGE OF SUPERVISION
     AT EACH FEDERAL RESERVE BANK


SUBJECT:    System Training Procedures

                      Through SR Letter 91-1 (January 4, 1991), the System outlined a training program for every System examiner that would require mastery of a defined core curriculum and successful completion of a test based upon that curriculum. The program contemplated successful completion of seven System courses (Introduction to Examinations, Financial Institutions Analysis, Loan Analysis, Bank Management, Management Skills, Effective Writing, and Conducting Meetings with Management) and mastery of related laws and regulations. In addition, the staff member would be required to demonstrate proficiency in at least one specialty area.

                      Questions have arisen about the experience to date with some of the core curriculum for the non-financial examination specialties. Accordingly, this letter is intended to clarify the content of the core curriculum and its resultant test.

                      A primary area of emphasis in the curriculum is the Loan Analysis course. This course stresses credit review concepts through extensive pre-course work (approximately 80 hours) and two weeks of classroom instruction. The depth of the course goes beyond the needs of specialty examiners. Moreover, the inclusion of content unrelated to daily job responsibilities places the specialty examiner at a comparative disadvantage when taking the core proficiency examination.

                      In order to balance specialty area requirements more equitably, the core curriculum for all System supervisory staff members will no longer include the Loan Analysis course. However, the course will be added as a requirement to the financial examination specialties. Moreover, the Consumer Affairs/CRA content of the core curriculum will be strengthened through four additional consumer-related self-study guides and additional fair lending and other consumer-related lectures in the Bank Management course. Finally, the content of the core curriculum examination will be modified to reflect the newly defined core curriculum.

                    The modified core curriculum is shown on the attachment. The modified curriculum should provide a better reflection of the body of knowledge that is valuable to all System staff members.

Richard Spillenkothen
Director

ATTACHMENT TRANSMITTED ELECTRONICALLY BELOW


Core Curriculum
(Effective ___________________)

Courses:

                        Introduction to Examinations

                        Financial Institutions Analysis

                        Bank Management

                        Management Skills

                        Effective Writing

                        Conducting Meetings with Management

Self-Study Guides:

                        Federal Reserve Act

                        Regulation Y

                        Regulation O

                        Regulation L

                        Sections 23A & B

                        Bank Secrecy Act

                        Right to Financial Privacy Act

                        Change in Bank Control Act

                        Regulation A (Discount Window)

                        Regulations G, T, U & X

                        Regulation Z: Open End

                        Regulation Z: Closed End

                        Regulation B

                        Regulation DD


SR letters | 1994