FDIC OIG: Audiit Report 05-027 (APPENDIX IV Corporation Comments) - Maximum Efficiency, Risk-focused, Institution Targeted (MERIT) Eligibility Process, July, 2005

July 2005
Audit Report 05-027

Step 1. Institution Size	Step 2. Capital Status	Step 3. Composite Rating at Last Two Exams	Step 4. Eligibility Criteria
$1 billion or less	Well Capitalized	1 or 2	Stable management
			No recent change in control
			No significant adverse external factors
			No de novo, niche, or banks identified on DSC’s Quarterly Lending Alert (QLA)
			No significant change in risk profile evident from offsite analysis or monitoring systems
			Effective formal or informal loan grading systems
			No significant new business lines
			No component rating of 3, 4, or 5

Source: Regional Directors Memorandum 2004-001, dated January 27, 2004.