An Examiner's Guide to Investment Products and Practices - December 1992 - Reformatted in 2021

Sep 26, 2026

Uploaded by James

An Examiner's Guide to Investment Products and Practices provides a structured resource for bank examiners reviewing community banks that purchase investment products. It presents foundational investment policies, procedures, practices, and controls, then uses product profiles to explain valuation sources, supervisory concerns, accounting treatment, risks, legal limitations, and risk-based capital considerations. The guide specifies the examiner focus on portfolio management, including investment policies, reporting, management information systems, and credit information to support prudent investment decisions.

LanguageEnglish

CategoryExam

FormatPDF

Pages126

Reading Time5 h 18 min

AccessFree to download

Foreword

1. Investment Portfolio Management Process

Investment policies and procedures

Management information systems

Quality-oriented investment culture

2. Investment Policy Content

Investment Products and Practices

Credit Information for Investment Securities

Unsuitable Investment Practices

Municipal and Corporate Bond Ratings

Investment Product Profiles

7. Glossary

Comptroller of the Currency Administrator of National Banks An Examiner's Guide to Investment Products and Practices December 1992 (Reformatted in 2021) Foreword An Examiner's Guide to Investment Products and Practices is intended as a resource for examiners when they examine community banks (purchasers of investment products) . Fundamental bank investment policies, procedures, practices, and controls appear in the introductory chapters, followed by product profiles. Each profile describes a product, where to find its current market value, supervisory concerns, accounting treatment, risks, legal limitations, and risk-based capital considerations. Sources contributing to the narrative are listed at the end of each product profile. OCC references may be obtained by contacting the Office of the Chief National Bank Examiner in Washington, D.C. The guide is the culmination of a project conceived in the Midwestern District. It was prepared under the direction of Robert R. Klinzing, Deputy Comptroller, Midwestern District. It was edited by Jeff W. Dick, National Bank Examiner (NBE) . Contributing authors were Jeff Dick, NBE; Joe Evers, NBE, CFA; Mike Larabee, NBE; Dave Wilson, NBE, CFA; Ann Jaedicke, NBE; Greg Anderson, CFA; Bruce Krueger, NBE, CFA; and, Kathy Dick, NBE, CFA. Technical support was provided by Barbara Gratch, NBE, Capital Markets Expert. The Midwestern District product was completed by the Capital Markets unit of the Office of the Chief National Bank Examiner under the direction of Assistant Chief National Bank Examiner Barbara C. Healey. Owen Carney, Senior Advisor for Investment Securities, and Lawrence Leong, NBE, performed the final review of its contents. The following people deserve special acknowledgment for their contributions: Donna E. Duncan; Edward Dumas; Jeff Mace; Amy Millen; Jamie Newell; Roger Tufts; and Stephen Theobald. Table of Contents An Examiner's 1. Investment Portfolio Management Process 1 Guide to 2. Investment Policy Content 2 Investment Products 3. Credit Information for Investment Securities 6 and Practices 4. Unsuitable Investment Practices 7 | 5. Municipal and Corporate Bond Ratings | 9 | | --- | --- | | 6. Investment Product Profiles
Asset-backed Securities
Certificates backed by accounts receivable, automobile paper, boat loans , recreational vehicle credits, and manufactured housing loans
Credit Card | 10
13 | | Corporate Debt | 15 | | Equity Securities | 18 | | Mutual Funds | 21 | Insurance 25 Guaranteed Insurance Contracts Annuities Life Insurance Products Money Market Instruments • Bankers Acceptances 27 • Certificates of Deposit 29 • Deposit and Bank Notes and Bank Holding Company Debt 31 • Asset-backed Commercial Paper 35 • Federal Funds Sold 37 • Repurchase Agreements 39 • Eurodollar CDs 41 | Mortgage-backed Securities | 43 | | --- | --- | | Pass-through Securities
Federal National Mortgage Association Government National Mortgage Association Federal Home Loan Mortgage Corporation Private Label Mortgage Securities | 52 | | Collateralized Mortgage Obligations | 58 | Stripped Mortgage-backed Securities and Residuals 72 Futures 93 | Forwards 96 | | | --- | --- | | U.S. Government and Agency Securities
• Treasury Bills 99
• Treasury Notes and Bonds 100
• Treasury Derivatives (STRIPS, TIGRS, CATS, etc) 101
• Agencies and Sponsored Corporations 103
Federal National Mortgage Association Federal Farm Credit Bank
Farm Credit System Financial Assistance Corporation
Student Loan Marketing Association Federal Home Loan Bank
Financing Corporation Resolution Funding Corporation Federal Financing Bank Tennessee Valley Authority Washington Metropolitan Areas
Transit Authority Maritime Administration
• SBA Pooled Loan Certificates 107
• FHA Title I Loan Pools 110 | | | 7. Glossary | 112 | 1. Investment Portfolio Management Process The growth and complexity of fixed income s

FAQs

What is the purpose of the guide for bank examiners?

It serves as a resource for examiners when they examine community banks that purchase investment products, outlining how to evaluate policies, controls, and product risks.

What does the guide cover before the product profiles?

It covers fundamental bank investment policies, procedures, practices, and controls in introductory chapters, before moving to detailed product profiles.

What key elements are included in an effective investment portfolio management process?

The guide emphasizes written, board-approved investment policies, solid management information systems with periodic reporting, and a quality-oriented investment culture supported by adequate credit information.

Sep 26, 2026

Uploaded by James