Although banks look like the model financial institutions that are all upright and ever law-abiding, some of them cross the line, which is where the bank examiners come in. A bank examiner is an experienced financial personnel whose responsibility is to investigate banks to ensure they are safe and sound. They are also responsible for investigating other financial and security firms too.
Who are bank examiners?
Bank examiners are financial professionals who are responsible for ensuring banks and financial institutions operate legally and within the confinements of banking rules as imposed by the governing bodies. They have the license to conduct research and investigations on behalf of governing agencies like the Federal Reserve System or banking authorities. They can also act as internal auditors for the financial institutions themselves.
A bank examiner is required to have an excellent knowledge of rules within the financial sector. That is what they use in order to review the institutions. Some of the factors they consider are the level of risk associated with loans offered by the bank, its financial statement and general assessment of the institution’s management body.
What does a bank examiner do?
Bank examiners implement state and federal laws on banks by ensuring their compliance. Taking a closer look, their responsibilities involves carrying out audits, studying financial documents for correctness, reviewing per cent policies and procedures used by the bank, and more. They also tend to interview both employees and managers about certain facts stated in the document.
The examiners are usually employed by financial or insurance firms for self-investigation or auditing, and also the state and federal government agencies for supervision and regulation compliance. As a bank examiner, you are required to have a good amount of experience and technical skills in the finance, marketing and economic sector.
Bank examiner’s report what they find to the agency who hired them, which in most cases, is either the government or upper board of directors/management of the investigated institution. Their report includes in-depth analysis and evidence to back up their findings in the most objective and non-condemning manner. This is because the reports could draw serious consequences, therefore, there’s no room for gamble or assumptions.
Bank examiners are also allowed to offer recommendations for corrective actions if they’re reporting authority desires. Depending on the crime, legal enforcement actions, financial penalties or appropriate punishments would be given to the respective law-breaking institutions.
What education and qualification is needed as a bank examiner?
Having a degree is compulsory as a bank examiner; or else, how would you be able to clamp down on banks illegal acts when you don’t know them yourself. A bachelor’s degree is required in finance or a related field of studies like economics or accounting. Also, having previous experience working in the finance industry is a plus too, and gives you an edge over others.
However, to fine-tune your skills and finally be accredited as a bank examiner, you have to go through a rigorous 4 to 5 years training program. The program involves several teaching and two main written tests (depending on your country’s governing body). On completion, you would be commissioned as a bank examiner and given credentials. Without commissioning, you cannot hold any active positions in the job, as doing so is illegal and punishable.