Bank Examination

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Bank Examination

A regular inspection performed by a regulator on a bank. An examination evaluates the number and quality of loans a bank makes, the quality of the bank's other assets and its compliance with regulation. An examination helps determine the stability and solvency of the bank in question. It often involves personal visits by examiners to the bank.
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Larger firms would be subject to a horizontal review process to compare their practices against rivals, while the compensation review for smaller banks would be part of their regular bank exams, the Fed source said.