Safety and Soundness Certification

Objectives:

• To achieve recognition of the advanced analytical skill level required to evaluate loan portfolios, assess credit administration practices, and review institutions’ credit risk management for compliance with supervisory expectations and applicable laws and regulations.
• To promote continuing education in credit risk assessment, underwriting practices, portfolio management, and related supervisory principles.
• To emphasize the importance of professional judgment and continued advancement of examiners specializing in credit analysis and asset quality evaluation.
• To enhance and maintain the quality of job performance and decision-making skills of examiners responsible for assessing lending practices and identifying emerging credit risks.

The CCE certification is step 2 in the CSBS bank safety and soundness credentialing program. Candidates for the CCE designation must provide evidence of the following:

• Applicants must demonstrate competency in credit-related examination work, including preparation of loan write-ups (practice or final, reviewed and approved by the Examiner-in-Charge), participation in loan review during examinations, evaluation of the Allowance for Credit Losses (ACL), and active involvement in related examination discussions. Competency in these areas, verified by the Examiner-in-Charge or appropriate supervisory authority, may satisfy this requirement regardless of time in service. Alternatively, completion of at least two (2) years of bank examination experience with a state regulatory agency, which includes substantive involvement in credit analysis and review, also satisfies this requirement.
• Satisfactory completion of the following CSBS course offerings or their equivalent (courses submitted as equivalent will be considered on a case-by-case basis):
  • Course requirements for the COE designation, and
  • CSBS Credit Evaluation School or
  • FDIC Loan Analysis School and FDIC Asset Liability Management School

Applicants must ensure that they meet all certification requirements and will then complete an attestation of successful job performance and mastery of job-related skills, providing a thorough written response for each competency category. Their supervisor will then review and affirm the attestation to ensure accuracy and completeness. The core competencies are an integral part of the certification, and a high degree of reliance is placed on the attestation for determining compliance with these skill areas. The supervisor reviewing the application form should be familiar with the applicant’s experience, performance, and skills/abilities and be confident that the applicant meets all the requirements outlined in the form.

TECHNICAL - Provides effective and accurate evaluation of the credit activities of financial institutions:

• Follows established procedures to collect and analyze loan portfolio and credit risk data.
• Assesses credit administration practices, loan underwriting, and portfolio management against industry standards and regulatory expectations.
• Effectively reviews reports of examination for accuracy, clarity, completeness, and proper support of conclusions.
• Identifies concentrations of credit, emerging risks, and weaknesses in credit risk management.
• Utilizes appropriate sampling methodologies and analytical tools to support findings.

CONCEPTUAL - Provides effective and accurate evaluation of asset quality and risk:

• Develops accurate conclusions and ratings of assets and asset quality from collected data.
• Evaluates loan quality, risk ratings, and allowance for credit losses.
• Identifies systemic or recurring deficiencies in lending practices and accurately assesses their impact on institutional safety and soundness.
• Evaluates management’s risk assessment processes, credit policies, and adherence to sound lending standards.
• Applies sound judgment in evaluating the adequacy of capital planning and risk mitigation strategies in light of credit risk exposures.

LEGAL/COMPLIANCE - Demonstrates knowledge of policies, procedures, laws, rules and regulations.

• Understands lending limits, real estate lending standards, consumer lending laws, fair lending requirements.
• Identifies and escalates compliance deficiencies and potential violations of law or regulation.
• Aligns conclusions with state and federal supervisory frameworks.
• Maintains current knowledge of evolving legal requirements, accounting standards (e.g., CECL), and regulatory guidance impacting credit risk.

COMMUNICATIONS - Provides effective oral and written communications:

• Clearly communicates assignments and expectations to assisting personnel.
• Engages professionally with financial institution personnel to obtain accurate loan and credit information.
• Effectively presents findings, ratings, and recommendations to financial institution and supervisory personnel.
• Prepares written comments that are accurate, grammatically correct, logically arranged, risk-focused, and factually supported.
• Demonstrates professionalism and collaboration in working with examination teams and stakeholders.

RECERTIFICATION
Every three years, participants will be required to provide evidence of the successful completion of a minimum of 63 continuing education hours (CEH). If an examiner exceeds this requirement, up to 14 CEHs may be carried over into the new three-year term. Continuing education should be selected with the goal of maintaining, improving, or expanding the examiner’s knowledge, skills, and abilities. Participants are also required to review and remain in compliance with updates to certifications. Should a material change related to the certification occur, additional training may be required to maintain certification.