The banking industry continued to exhibit signs of greater liquidity stress through the third quarter of 2016. However, the type of liquidity risks faced by banks seems to differ based on their size and business model. For instance, while small banks are showing signs of tighter on-balance sheet liquidity, larger banks (particularly thrift institutions) are showing an increased dependence on

Key Findings The third quarter discussions and survey results indicate that a continued focus on credit risk management practices and concentration risks is warranted and has continued across most regions. However, there are indications that liquidity levels are tightening. With this tightening, examiners report that banks’ liquidity positions and contingency funding plans are garnering more supervisory attention. Summary of Findings

A CURRENT REVIEW OF APPRAISER SHORTAGES IN RURAL COMMUNITIES & APPRAISAL STANDARDS State and federal bank regulatory agencies continue to evaluate the perceived shortage of state certified and licensed appraisers in certain areas across the country. Various industry stakeholders consistently note that appraiser shortages impact the timeliness of appraisals – extending rate locks, impeding credit availability and delaying closings for