BANK EXAMINER, GRADE 20	0301200
SENIOR BANK EXAMINER, GRADE 25	0301300
PRINCIPAL BANK EXAMINER 1, GRADE 29	0301510
PRINCIPAL BANK EXAMINER 2, GRADE 31	0301520
SUPERVISING BANK EXAMINER, GRADE 33	0301600
Assistant Deputy Superintendent of Banks, M-6	0301800
Deputy Superintendent of Banks, M-8	0301900

New York State Department of Civil Service

Classification Standard

BRIEF DESCRIPTION OF CLASS SERIES

Positions in this title series conduct in-depth examinations of financial institutions and other businesses regulated by the Banking Department. Incumbents either perform on-site examinations and reviews of institutions' financial condition, operating procedures and management controls or, when assigned to one of the Department's office divisions, review and analyze examination reports and periodic financial reports submitted by various types of institutions. The field examinations and office analyses ensure that State-chartered financial institutions conduct their businesses safely and soundly and that their policies and operations conform to the Banking Law and the Department’s rules and regulations. These positions are classified only in the Banking Department.

DISTINGUISHING CHARACTERISTICS

BANK EXAMINER: entry level, no supervisory responsibilities; serves as a commissioned examiner (individual placed in charge of an examination) of small financial entities such as licensed lenders, sales finance companies, check cashers and money transmitters; in the examinations of large financial institutions, may be the lead examiner in a small department such as auditing or general accounting or as a subordinate examiner for large departments such as mortgages, securities, commercial and installment loans.

SENIOR BANK EXAMINER: serves as a commissioned examiner in small to moderate size institutions, such as savings banks, and savings and loan associations, or as lead examiner in departments of small commercial banks, large savings banks, credit unions, and savings and loan associations, and moderate size foreign branches and agencies, or as subordinate examiner in major departments of the largest financial institutions; may also be assigned as the commissioned examiner for other small entities that are "problem" institutions; may supervise Bank Examiners.

PRINCIPAL BANK EXAMINER 1: may be assigned as the Central Point of Contact (CPC) or Assistant CPC, and serves as commissioned examiner in the field examination of institutions of medium size and/or complexity, as well as smaller institutions that pose problems for the Department; performs as lead examiner for a segment of the examination of a large institution or assists a higher level examiner at a multinational bank; in an office assignment, may serve as a portfolio manager of a number of institutions; supervises Senior Bank Examiners.

PRINCIPAL BANK EXAMINER 2: acts as Examiner-in-charge (EIC) of the largest, most complex foreign branches and agencies or those considered problem institutions or medium-sized internationally oriented institutions; performs as first assistant for international coverage at the largest multinational banks or as CPC for large institutions under the continuous supervision program; supervises Principal Bank Examiners 1.

SUPERVISING BANK EXAMINER: serves as the CPC or EIC of the largest and most complex institutions or assistant to senior management of an operating division; supervises Principal Bank Examiners 2.

Assistant Deputy Superintendent of Banks: serve as EIC of the largest, most complex institutions such as the multinational money markets; in the office, is the second-in-command in one of the divisions; supervises Supervising Bank Examiners.

Deputy Superintendent of Banks: directs the activities of a division.

RELATED CLASSES

Insurance Examiners perform on-site examinations as well as office reviews and analyses of the financial condition and operation of insurance companies to determine compliance with the Insurance Law and the Rules and Regulations of the Superintendent of Insurance.

ILLUSTRATIVE DUTIES

BANK EXAMINER

As a field examiner, duties include:

- Reviews credit files of outstanding loans and mortgages. Analyzes credit information and determines the collectibility of debts.

- Reviews the investment portfolio and determines the quality, diversity and maturity of the portfolio. Ascertains that established policy is being adhered to.  Prepares appropriate report schedules.

- Reviews real estate owned to determine the quality of the properties and that they are administered in accordance with applicable laws and regulations.

- Reviews installment loan operations to determine overall quality of the portfolio based on the volume and severity of delinquencies and for compliance with applicable laws and regulations.

- Reviews foreign exchange and trading operations to ensure that they are conducted within established policies and limits.

- Analyzes the miscellaneous asset and other liability accounts to determine appropriateness of accounting treatment. Reviews for stale items and ascertains collectibility of assets.

- Analyzes the level and trend of earnings.  Determines that earnings are being reported properly.  Makes peer group comparisons of earnings results.

- Evaluates audit and internal control procedures for adequacy.  Reviews outside accountants' report for exceptions and follow-up. Completes audit questionnaire if necessary.  Reviews reports to regulatory authorities.

- Compiles the report of examination. Edits the report for errors and omissions.  Reviews call report for accuracy.

- Reviews various types of trusts to determine that the bank performs its tasks in accordance with underlying agreement and/or applicable laws and regulations.  Determines the quality of any investments being held by individual accounts and that purchases and sales are properly approved and are in accordance with investment strategy for each account.

- Reviews investments in subsidiaries of Bank Holding Companies. Determines purpose of subsidiary, the extent and type of its activities, and its financial condition.

- Performs reviews for compliance with consumer laws and regulations.

- Assists in proving general ledger and subsidiary accounts to ensure all assets and liabilities are controlled.

- Reconciles accounts to ensure that they are in proof with bank statements and that individual items represent valid transactions.

- Inspects notes, collateral to loans, mortgage instruments, etc. to determine that they are accounted for and in proper form.

- Counts and confirms securities owned.

- Proves and verifies stock ledgers and analyzes changes in accounts since the last examination.

As an examiner assigned to the office, he or she monitors the operations for a number of institutions:

- Receives, reviews and evaluates field examination reports and periodic reports submitted by an institution to determine present conditions and trends of the institution as a whole and the various departments within the institution.

- Prepares written reports on findings, conditions and trends in the institution, cites problem areas and deteriorating trends. Determines underlying causes and recommends courses of action to restore or reverse trends.

- Drafts letter to institution pointing out major problem areas and corrective actions required to resolve problems.

- Reviews institution's replies and courses of action proposed to resolve problems.

- May prepare a second letter or arrange for a meeting between Banking Department and management officials to restate difficulties and possible solutions when an institution disregards original letter.

- Reviews applications by an institution for new branches, changes in capitalization, changes in bylaws, etc.

- Evaluates institution's capability to handle new branch or capitalization in terms of management and financial capability. Reviews legality of proposals against Banking Law, Department regulations and bylaws of institution.

- Prepares written reports and recommendations on applications based on previous field examination reports, prior changes or expansions, points of law, industry trends and comments received from management and board members.

SENIOR BANK EXAMINER

When assigned to field examinations, performs the following duties:

- Reviews prior examination reports, periodic reports submitted by institution to become informed of specific problem areas, overall financial condition, management of the institution and to plan examination.

- Selects and assigns subordinate examiners and briefs them on their assignments.

- Meets with institution management to present credentials, discuss scope of examinations, request information and materials needed for examination, arrange for working space and obtain general orientation to the institution's operations.

- Oversees examination process, and supervises the work of subordinates.

- Prepares write-ups on loans and mortgages to be classified or mentioned in final report.

- Examines other assets and liabilities to verify accuracy and disclose questionable or illegal practices.

- Reviews reserves maintained against deposits to ensure that they meet legal requirements.

- Prepares numerical liquidity analyses through the use of various formulae applicable to the different types of institutions.

- Reviews supervisory reports prepared by financial institutions to assess accuracy and timeliness of submission.

- Reviews the adequacy of records, systems and controls in place in all operations of an institution.

- Examines investments in bank premises to ensure that they do not exceed legal limits.

- Examines insurance bonding to determine adequacy of protection.

- Reports on institution earning trends through analysis of income and expense accounts.

- Examines domestic and foreign branch offices and subsidiaries.

- Proves and verifies stock ledgers and analyzes changes in accounts since the last examination.

- Reviews all examination report schedules and workpapers prepared by subordinate examiners to determine adherence of institution to sound financial practices and legal requirements.

- Edits analyses submitted by subordinates and prepares comprehensive field examination report, including general findings, specific comments on problem areas and management response for submission to the operating division.

- Discusses findings with management and obtains their responses to comments on the operation of their institution.

As an office examiner in one of the operating divisions, a Senior Bank Examiner monitors the operations of specific institutions. He or she performs duties similar to those described for Bank Examiners, but for larger institutions.

PRINCIPAL BANK EXAMINER 1

When assigned to field examinations, a Principal Bank Examiner 1:

- Plans and organizes examinations, and assigns key subordinate examiners to specific segments of the examination (e.g., loan review, investment portfolio, earnings, liquidity analysis, etc.)

- Supervises all phases of the examination and ensures the coordinated analysis of the institution's overall financial and operational condition.

- Evaluates a bank's loan portfolio utilizing a statistical sampling technique and judging the adequacy and acceptability of a bank's own internal review and classification system for report purposes.

- Reviews institution’s off-balance sheet, trading operations, and the adequacy of policies, procedures and controls governing such activities.

- Examines institution’s liquidity structure and the management policies governing this sensitive area, and earnings performance through detailed analysis of the income and expense accounts.

- Assesses institution's capital adequacy and capital planning process, and senior management's strategic business plan.

- Analyzes the adequacy of institution's audit department.

- Reviews institution's international department, including desk reviews of any foreign branches, subsidiaries and International Banking Facilities.

- Examines affiliate relationships and policies governing same, with emphasis on potential conflicts of interest or unsound policies.

- Oversees the completion of individual report schedules and their assembling into a coherent examination report.

- Meets with key management during the examination and discusses the final examination findings with them.

- Mediates disputes between examining personnel and bank staff to achieve a satisfactory resolution, taking disciplinary action where circumstances might require.

- Submits an accurate, comprehensive report of examination of the financial condition of the entity, complete with narrative and analytical presentations on the various operations of the institution, with suggestions or recommendations to the senior management team and board of directors on corrective measures that need to be taken.

A Principal Bank Examiner 1 assigned to the office monitors the operations of a group of institutions.

- Reviews applications for new powers, investments and facilities, mergers, and acquisitions, as well as the review of examination reports and interim regulatory reports; and recommends appropriate action to management.

- Monitors institutions classified as "problem institutions." A higher level of experience and judgment are normally required for overseeing such entities.

- Recommend administrative actions, fines, penalties or suspension or revocation of licenses or charters where circumstances warrant.

PRINCIPAL BANK EXAMINER 2

The following activities are performed when assigned to field examinations.

- Prepares the risk assessment, risk matrix, staff utilization schedule, and the examination scope and procedures based upon the institution’s risk profile, information in the previous examination report, workpapers, correspondence, internal departmental memoranda and directives from Department management. 

- Requests information from bank management about policy or operating changes that could influence examination procedures and future results.

- Monitors examination progress, provides guidance to subordinates and adheres to time schedules.  Reviews the assignments of assisting examiners, providing constructive critical analysis of their work. 

- Trains lower level examiners in international banking operations.

- Reviews recommendations on the credit worthiness of loans, securities, other risk-bearing assets and contingent account activity, and exchanges views with branch or agency management on assets or contingencies deemed subject to criticism or comment.  Decides whether such items are listed for special mention or are to be classified.  Writes supporting report comments on listed or classified items and reviews comments made by assisting examiners.

- Determines which assets are ineligible to serve as coverage for branch or agency liabilities and which liabilities in branches or agencies require coverage by eligible assets.

- Decides whether the branch or agency maintains a sufficient volume of assets considered eligible to meet the percentage of coverage of liabilities.   Reviews branch or agency computation of such coverage to determine continuous compliance with the statute.

- Reviews the liquidity position of the branch or agency to determine whether the volume of liquid assets appears appropriate in light of the volatility and historic record of the deposit structure in a branch or credit balances in an agency, the amount and terms of borrowed funds, the branch or agency's position in domestic and international credit markets and the impact of any adverse political or economic developments in the home country of the branch or agency which might affect its fund raising ability.

- Reviews the foreign exchange position report schedule and policies and practices of the branch, agency or multinational bank on position limits in various foreign currencies.

- Reviews and analyzes all examination report schedules, supporting comments and workpapers submitted by assisting examiners, and statements made by branch or agency employees, to determine whether any risks are present which unduly expose the branch, agency or international division to loss.

- Reviews apparent violations of law or regulation, discusses each case with assisting examiners and institution management, determines what documents and records should be assembled to complete a review and analysis and, if necessary, asks for and reviews the opinion of institution counsel.

- Reviews with management significant examination findings and conclusions; suggests and explores practicable approaches to correct deficiencies.

- Writes comments for the confidential section of the examination report in which a quality rating is accorded management, giving opinions on top management, the soundness of policies formulated by the board of directors and their implementation by management.

When on office assignment, duties include:

- Processes, analyzes and recommends action on complex corporate actions submitted for approval by institutions.

- Analyzes applications for various actions by conferring with principals of the institutions involved, reviewing plans, evaluating financial data and all legal and financial requirements.  Recommends approval or denial of applications to the Deputy Superintendent. 

- Notifies applicant of Banking Board action, prepares detailed letter outlining any items upon which approval is contingent, reviews changes and prepares periodic reports.

- Assists and advises the Deputy Superintendent, field examiners, officials of institutions, and others on regulatory matters.

- Prepares studies and special projects for the Superintendent and Deputy Superintendent on various topics by establishing objectives, developing parameters, conducting research, conferring with appropriate individuals and preparing the final draft of position papers and studies.

- Prepares presentations to the Banking Board on matters requiring Board action.

- Acts as liaison to, and meets with, Federal and State regulatory authorities and industry groups on legal and accounting matters affecting supervised institutions.

- Addresses potentially critical and highly controversial issues affecting the banking industry, and provides guidance to subordinate examiners.

- Assists higher level examiners with the development and implementation of regulatory policies affecting supervised institutions.

SUPERVISING BANK EXAMINER

When assigned to field examinations, duties include:

- Develops a pre-examination plan that includes a risk assessment, risk matrix, staff utilization, and scope of examination based on previous examination reports, internal Departmental memoranda on developments at the institution, and directives from the Deputy Superintendent in charge of the operating division.

- Consults with the Federal agency EIC on joint examinations to decide the most efficient and productive use of examiners.

- Provides guidance in solving problems and in coping with unusual situations, and to gauge the prospect for completing the examination within the projected timeline.

- Reviews the administration of some of the largest personal trust, corporate trust and employee benefit trust accounts for adherence to law, indentures and sound policy requirements.

- Determines the soundness of mortgage appraisal, origination and servicing policies, the adequacy of risk diversification by type and location of mortgaged properties and the effectiveness of procedures employed to assure adherence to FHA and VA regulations governing insured and guaranteed mortgage loans.

- Evaluates the examination report schedule and supporting workpapers on income and expense and confers with institution management on earnings results and forecasts to determine the ability to provide for inherent loan losses, interest and operating costs, dividends at existing levels and reasonable additions to capital.

- Reviews the examination report schedule showing the computation of capital adequacy and confers with institution management on short- and long-range plans to rectify an inadequate capital ratio, or to preserve and maintain a position appropriate to the volume and character of the institution's business.

- Analyzes all examination report schedules, supporting comments and workpapers submitted by assisting examiners, statements made by institution officers, employees and attorneys, and other pertinent information generated during the examination. Determines whether any risks are present which unduly expose the institution to loss, including excessive loan or investment concentrations to one interest or industry, excessive or unwarranted insider loans, poor accounting systems, weak internal controls, inadequate auditing, insufficient insurance coverage or large contingent liabilities.

- Writes comments for the section of the examination report restricted to the confidential use of the Banking Department in which a quality rating is accorded management.

- Reviews and discusses with institution management and board of directors/trustees significant examination findings and conclusions and explores approaches for correcting the deficiencies.

When assigned to the office, duties entail:

- Schedules and coordinates the activities of an examination team. Assigns EICs and examiners to on-site examinations.

- Reviews and approves the risk assessment, risk matrix, examination scope and staff utilization prepared by the EIC.

- Communicates with federal regulatory agencies on critical risk elements, examination scope and scheduling.

- Meets with bank management to learn of present plans, trends and problems, and to discuss significant examination findings.

- Reviews examination report schedules, supporting comments and workpapers and examination reports prepared by team members.

- Transmits examination reports to institutions, and recommends and justifies formal supervisory action to correct adverse trends and exceptions, and coordinates such actions with appropriate Federal regulatory authorities.

- Monitors institutions’ compliance with the Department’s supervisory policies and procedures.

- Directs and supervises the activities of examiner and clerical staff.

- Makes policy recommendations on matters related to supervised institutions.

- Suggests new legislation and amendments to existing legislation affecting regulated institutions.

- Reviews and analyzes numerous types of applications from supervised institutions requesting approval from the Department and submits recommendations to Deputy Superintendent and Executive Division.

- Represents Division at various meetings and conferences both within and outside the Banking Department.

- Makes recommendations to the Deputy Superintendent in preparing data for the Superintendent's Annual Report to the Legislature.

Assistant Deputy Superintendent of Banks

When acting as field examiner, performs duties similar to those described for Supervising Bank Examiner but for more complex institutions where examinations have far greater implications for the financial community. Performs examinations that carry greater responsibility in risk assessment and are subject to a number of complex variables. As EIC of the largest problem banks, evaluates the prospect of restored financial health or the necessity for merger or acquisition.

When assigned to the office, duties include:

- Assumes overall responsibility for a division’s operation in the absence of the Deputy Superintendent.

- Advises the Superintendent on matters dealing with banking industry and individual institutions.

- Evaluates and approves examination reports and transmits them to the institutions.

- Resolves regulatory problems arising through the examination process, including meetings with senior management and boards of directors of regulated institutions.

- Provides surveillance of problem entities, which operate under significant financial and management difficulties and pose the greatest supervisory concern to the assigned division.

- Assesses penalties on institutions that violate the Banking Law and suspends the license of insolvent institutions, as delegated by the Superintendent.

- Analyzes proposals submitted by subordinates and recommends appropriate action to the Deputy Superintendent and executive staff.

- Assists Deputy Superintendent in developing policies and procedures and introducing changes to laws and regulations. Formulates new or revised legislation and regulations.

- Represents the Department at conferences, seminars and trade association meetings.

- Oversees division operations by supervising staff, preparing budget, overseeing information systems, and making and reviewing assignments.

Deputy Superintendent of Banks

- Directs one of the divisions of the Department.

- Plans and directs the examinations of financial institutions.

- Assigns commissions to examiners at all levels.

- Develops standards and methods for examining institutions, and reviews examination reports on the financial condition of institutions, the adequacy of their operations and the capability of management.

- Directs letters to institutions to convey examination findings, calling attention to management on corrective action desired.

- Meets with institution officers to discuss policies and resolve problems.

- Advises the Superintendent on banking matters. 

COMMUNICATION

Bank Examiners and Senior Bank Examiners communicate orally and in writing with officials of financial institutions and, in rare situations, have contact with high level management. Principal Bank Examiners 1 have daily contact with officials of financial institutions and less frequent contact with high level management and members of the boards of the institutions. These contacts are generally oral and involve explaining the examination process, requesting information and records. Principal Bank Examiners 2 and Supervising Bank Examiners communicate orally with the board members of institutions to discuss examination findings and criticisms of management contained in the reports. Assistant Deputy Superintendents of Banks confer with the highest level industry officials such as presidents, chief executive officers, and board chairpersons to present recommendations and findings based on examinations, and review of applications submitted by these institutions.

MINIMUM QUALIFICATIONS

BANK EXAMINER

Open Competitive: Bachelor’s Degree and three years of industry or regulatory experience.

SENIOR BANK EXAMINER

Promotion:   one year of service as a Bank Examiner.

Open Competitive: five years of industry or regulatory experience or an equivalent combination of the two.

PRINCIPAL BANK EXAMINER 1

Promotion: one year of service as a Senior Bank Examiner.

PRINCIPAL BANK EXAMINER 2

Promotion: one year of service as a Principal Bank Examiner 1.

SUPERVISING BANK EXAMINER

Promotion: one year of service in a Bank Examiner position allocated to Grade 29 or higher.

Assistant Deputy Superintendent of Banks

Promotion: One year of service as a Supervising Bank Examiner.

Deputy Superintendent of Banks

Promotion: one year of service as an Assistant Deputy Superintendent of Banks.

Revised:  12/03

NOTE: Classification Standards illustrate the nature, extent and scope of duties and responsibilities of the classes they describe. Standards cannot and do not include all of the work that might be appropriately performed by a class. The minimum qualifications above are those which were required for appointment at the time the Classification Standard was written. Please contact the Division of Staffing Services for current information on minimum qualification requirements for appointment or examination.