Safety and Soundness Certification

Objectives:

• To achieve recognition of the foundational skill level required for the examination and review of financial institutions for adherence to state and federal laws and regulations, including those related to capital, earnings, liquidity, sensitivity, and overall operational soundness.
• To promote continuing education and development of essential supervisory skills in bank regulation.
• To emphasize the need for professionalism, ethical conduct, and adherence to examination procedures in the early stages of an examiner’s career.
• To enhance and maintain the quality of job performance and analytical capabilities of examiners responsible for conducting and documenting core examination functions.

The COE certification is step 1 in the CSBS bank safety and soundness credentialing program. Candidates for the COE designation must provide evidence of the following:

• Completion of a minimum of twelve (12) months of on-the-job service in financial institution supervision, and/or successful service as the designated team lead (Operations Manager) on at least one examination.
• Ability to complete all components of an examination with minimal supervision, including analysis of earnings, liquidity, and sensitivity to market risk; participation in at least one exit meeting to present the CELS components; and
• Satisfactory completion of the following course offerings or equivalent:
  • CSBS Day One: Bank Safety & Soundness Examiner Training and CSBS Bank Analysis School or
  • FDIC Introduction to Examinations School and FDIC Financial Institution Analysis 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 organization for the examination process:

• Adheres to examination procedures, policies, and state/federal supervisory expectations.
• Organizes and prioritizes assignments to ensure timely completion.
• Ensures pre-examination planning, scoping and information requests are successfully completed and documented in a timely manner.
• Prepares workpapers that are organized, supported, and compliant with applicable supervisory guidance.
• Demonstrates competence in the use of examination technology, data analysis tools, and secure systems.
• Identifies exceptions, deficiencies, and internal control weaknesses within operational areas and documents them appropriately.

CONCEPTUAL - Provides effective and accurate evaluation of the operational activities (i.e., capital, earnings, liquidity, sensitivity to market risk, and miscellaneous areas) of financial institutions:

• Collects and analyzes operational and financial data per examination procedures.
• Develops accurate conclusions and risk assessments from collected financial data.
• Recognizes systemic or process-related issues and assesses their impact on financial condition.

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

• Identifies and applies relevant state and federal laws, rules, and regulatory guidance related to operational risk, liquidity management, and financial reporting.
• Evaluates adherence to safety and soundness standards, consumer protection requirements, and other supervisory expectations.
• Maintains current knowledge of evolving regulatory frameworks and guidance.
• Recognizes and appropriately escalates potential violations, compliance deficiencies, or unsafe practices to supervisory personnel.

COMMUNICATIONS - Provides effective oral and written communications:

• Clearly communicates with financial institution personnel to obtain accurate and complete information.
• Communicates findings to supervisory personnel in a concise and professional manner.
• Prepares written comments that are accurate, grammatically correct, logically arranged, risk-focused, and factually supported.
• Collaborates effectively with colleagues and stakeholders to achieve examination goals and promote consistent supervisory outcomes.
• Demonstrates professionalism, ethical conduct, and respect in all communications.

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.