|Subject:||OE Examination Manual Update|
|Date of Memorandum:||05/28/1998|
|Expiration Date:|| |
|Signed By:||Smith, Roland|
|FCA Contact Person:||Holland, Tom|
|List of Attachments:||Revised Section EM-135--Financial Institution Rating System|
May 28, 1998
To: FCA Examination Manual Subscribers
From: Roland E. Smith, Chief Examiner /s/
Office of Examination
Subject: FCA Examination Manual Update
Attached is the revised Section EM-135 of the FCA Examination Manual (Manual) entitled Financial Institution Rating System (FIRS). This document reflects recent adoption of FIRS by the Farm Credit Administration (FCA) Board on April 9, 1998. The FIRS modifies the FCA Rating System (currently referred to as CAMEL) by adding a separate rating factor for sensitivity to market risk. This is referred to as the "S" component on CAMELS. Included in the revised section is a discussion of the sensitivity component and definitions for four new ratios that reflect interest rate risk sensitivities. Questions concerning revisions to EM-135 should be directed to either Jim Enzler or Greg Yowell at (703) 883-4483.
Please remove existing Section EM-135: FCA Rating System from your copy of the Manual and insert the revised section.