financial examiner

What does a Financial Examiner do?

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A financial examiner determines if financial businesses and transactions comply with the law. These examiners evaluate the risk level of financial loans, assess bank management, and review balance sheets. They also monitor lending activity to make ensure borrowers are fairly treated and report on the financial soundness of a company. They typically work full-time and are mainly employed by the insurance or finance industry and governments.

Watch a video to learn what a financial examiner does:

How to Become a Financial Examiner

A financial examiner requires a bachelor’s degree that includes college courses in finance, accounting, economics, or a related field. However, specific requirements may vary between state and federal governments. Those working for the Federal Deposit Insurance Corporation (FDIC) need a minimum of 6 semester hours in accounting. After employment, you would receive on-the-job training as an entry-level worker under the supervision of a senior examiner.

Financial examiners with a few years experience may advance to senior examiner positions, but would typically need to hold a master’s degree in business or accounting or become a Certified Public Accountant (CPA).

Job Description of a Financial Examiner

financial examiner

A financial examiner monitors the financial condition of financial institutions. They examine balance sheets and loan documentation to confirm liabilities and assets, operating income, and expense accounts. He or she may train other examiners in the financial examination process.

A financial examiner reviews new policies or regulations to determine the impact on the institution. They establish guidelines for policies and procedures to remain in compliance with new and revised regulations. They typically work in one of two main areas: consumer compliance or risk scoping. Those working in consumer compliance monitor lending activity to ensure the fair treatment of borrowers and also ensures borrowers have the ability to pay the loan back to the back.

In addition, a consumer compliance examiner helps borrowers avoid “predatory loans” that generate profit for banks because of high-interest rates that may potentially damage the credit score of the borrower. He or she also ensures there is no discrimination to borrowers by a bank. A financial examiner working in risk scoping will determine a financial institution’s health. They make sure that banks and other financial institutions offer safe loans and have a required amount of cash on hand to handle unexpected losses.

Financial Examiner Career Video Transcript

Financial examiners work hard to prevent financial crises from occurring. They make sure that banks and other financial institutions follow laws and regulations that keep institutions operating securely and protect consumers’ interests. Financial examiners review balance sheets, evaluate the risk level of loans, and assess bank management.

Typically, they specialize in either risk assessment or consumer compliance. Those working in risk assessment evaluate financial institutions’ health. Examiners evaluate bank managers’ performance, ensuring that banks and other financial institutions offer safe loans and that they have enough cash on hand to manage unexpected losses. This helps ensure the financial system remains stable. Financial examiners working in consumer compliance ensure that borrowers are treated fairly. They help borrowers avoid “predatory loans” that generate profit for banks through high-interest payments and are risky for borrowers. Examiners also ensure that banks do not discriminate against borrowers.

Most financial examiners work full time, in offices, and frequently travel to inspect banks. Typically financial examiners need a bachelor’s degree with some coursework in accounting, finance, economics, or a related field. Examiners who work for the Federal Deposit Insurance Corporation typically need at least six semester hours in accounting. Once hired, financial examiners typically receive at least one year of on-the-job training… entry-level workers learn under the supervision of senior examiners.

Article Citations

Bureau of Labor Statistics, U.S. Department of Labor, Occupational Outlook Handbook, Financial Examiners.

National Center for O*NET Development. 13-2061.00. O*NET OnLine.

The career video is in the public domain from the U. S. Department of Labor, Employment and Training Administration.

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