Footnote 1: The loan penetration ratio is calculated by dividing the
total dollar volume of nonhomogenous loans reviewed by the total dollar volume of nonhomogenous loans.
Nonhomogenous loans may be broadly defined as loans that are commercial or agricultural in nature and
that generally require individual loan review.
Footnote 2: The QLA is a DSC internal reporting mechanism for
identifying those insured institutions engaged in lending activities that inherently pose an increased risk to
the institution, including subprime lenders, payday lenders, and other high-risk lenders. The DSC regions
report this information to DSC’s Washington office quarterly.
Footnote 3: The Financial Services Roundtable promotes the business
of banking and encourages the development of sound banking and financial policies and practices. Membership
in The Financial Services Roundtable is reserved for the 125 largest banking and thrift companies in the United
States. The roundtable sponsors independent research and analysis of issues relating to the future development
of the nation’s banking and financial system.
Footnote 4: The Basel Committee on Banking Supervision is a committee
of banking supervisory authorities that was established in 1975. It consists of senior representatives of banking
supervisory authorities and central banks from Belgium, Canada, France, Germany, Italy, Japan, Luxembourg,
Netherlands, Sweden, Switzerland, the United Kingdom and the United States.
Footnote 5: The term subprime refers to the credit characteristics of
borrowers who typically have weakened credit histories that include payment delinquencies, previous charge-offs,
judgments, or bankruptcies. On January 31, 2001, the Federal banking regulators issued expanded guidance for
the examination of subprime lending activities. The guidance applies to those institutions that deliberately target
the subprime market as part of their business strategy and have an aggregate credit exposure greater than or equal
to 25 percent of Tier 1 capital.
Footnote 6: Before the issuance of Memorandum 2001-037, PEP memoranda
included a discussion regarding examination hours (budgeted hours, average hours, and previous hours).
Footnote 7: The SAER provides a historical record of an institution, and includes
comments that briefly summarize an examination’s findings. In developing SAER comments, emphasis is placed on the
CAMELS components and weaknesses identified in the report.
Footnote 8: Includes state banking authority examinations accepted by the FDIC.
Footnote 9: Ibid.
