Banking Department

Issues in the Credit Examination Process

The Banking Department, which is responsible for regulating the State's banking industry, is required to conduct periodic on-site examinations of banks' financial records. We reviewed the Department's examination process and found that improvements are needed. For example, some of the banks requiring annual examinations may not have been examined annually, and the examinations themselves could be better documented by Department staff. We also found that some of work performed by Department examiners may duplicate work performed by certified public accountants and other reviewers. We recommend a number of improvements in the procedures used by the Department to examine banks' financial records.

For a complete copy of Report 96-S-33 click here.
For a copy of the associated follow-up report click here.
For a copy of the 90-day response click here.