the next generation & state commitment

Conference of State Bank Supervisors Conference of State Bank Supervisors

Examination Tools

Examination Tools:

the next generation &

state commitment

Vaughn Noring: Chair, SSPC

Bank Bureau Chief—Iowa Division of Banking

Jim Cooper: ETS Executive Steering Committee Deputy Director—Indiana Department of Financial Institutions

of Financial Institutions Mary Beth Quist

Senior Vice President-Bank Supervision Kyle Thomas

Director Bank Supervisory Processes Director-Bank Supervisory Processes

Supervisory Processes

Supervisory Processes

• Coordination

E

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• Examiner support & best practices

– Safety & Soundness – IT – BSA – Compliance – Holding Company – Holding Company

• Technology

• Critical infrastructure

outline

outline

• Take aways—the importance of ETS

• History of the initiative

– The need for new tools – Involvement

– Leadership

• Overview of tools

– Replacement of existing tools p g

• GENESYS  SAGE

• ALERT  ETS-ALERT

– Brief SAGE overview

– Detailed ETS-ALERT overview

• Requirements & prerequisites

Take aways

Take aways

• The move to ETS tools will affect most examiners

– 41 states report using ALERT

– 47 states report using GENESYS

• Budget implications/planning for resource demands

The need for updates

The need for updates

• Current tools based on dated technology

gy

– GENESYS no significant updates for over 10 years – ALERT unchanged since 1998

Operating systems and Microsoft office products have changed – Operating systems and Microsoft office products have changed

significantly

• Decreasing reliability, unsupported environments

– Increasing support burden

• Desire for greater collaboration

– More joint exams – More joint exams

State examiner involvement

State examiner involvement

ETS

‐

ALERT

ETS

‐

SAGE

1.  Doug Hoselton (ND) 2.  George Roumeliotis (IL)

1.  Perry Anne Hayward (MS) 2. Richard Abdill (NJ) 3 G t h Ch b l i (IA) 3. Mike Kellum (OK) 3. Gretchen Chamberlain (IA) 4.  Gene St. Andrews (NC)

1. Tom Fite (IN) 2. Perry Anne Hayward (MS)

3.  Kevin Wu (TX)

1.  Doug Hoselton (ND) 2. George Roumeliotis (IL)

3. Craig Herrold (PA) 4.  Annette Cheng (CA)

5. Kevin Wu (TX) 5.  Kevin Wu (TX)

Leadership of the ETS

initiative

initiative

ETS S

i

ETS Program & 

Project Mgmt

ETS Governance 

Board

ETS Steering 

Committee

________

ETS Stakeholders

Board

Change Control 

Board

‐FDIC

‐State

FRB

‐FRB

Steven App (Deputy to  

the Chairman & CFO Russell Pittman (DIT 

Division Director and 

CIO

James LaPierre (RMS(  

the ETS Executive Steering

Committee

Committee

ETS

Steering

Steering

Committee

ETS SAGE

ETS SAGE

• Replacement of GENESYS

p

– Scheduled for deployment in mid-2013 – Currently in Construction phase

• Features:

Features:

– Modernized technology: no dependence on Microsoft Office products

– Will operate in connected and unconnected environmentsWill operate in connected and unconnected environments – Will offer attachment functionality to save imaged workpapers – Collaboration-based architecture

– Will use ETS-ALERT output (classifications writeups etc)Will use ETS ALERT output (classifications, writeups, etc)

• Currently in construction phase

ETS ALERT

ETS ALERT

• Replacement of Legacy ALERT

– Transition phase will begin in 2nd _{quarter 2012}

• Features

– Simplified data import functionp p

– No reliance on Microsoft Word, Excel, or Access – Integrated tools (LPAT and Loan Sampling)

– Excel-like capabilities of sorting, filtering and arranging data

– Interface with SAGE to simplify the Report of Examination creation process

– Electronic eLinesheets and eDiscuss-only

– Will allow examiners to scan or save supporting documents, such as an appraisal or financial statement for attachment to a particular loan’s eLinesheet

Prepare data

Prepare data

scoping

scoping

FDIC all-in plan

FDIC all in plan

h k

Three key areas:

(1) User Acceptance Testing 

(UAT) (2) Field Pilot (3) Training & Deployment

Transition to ETS-ALERT

Transition to ETS ALERT

User Acceptance Testing

2nd_{Quarter 2012}

• 4, two‐week sessions • Onsite in DC area Field Pilot 3rd_{Quarter 2012} • Conducted on actual  exams Training 3rd_& 4th_{Quarter 2012} • Option 1: receive 

training with local 

Onsite in DC area • Open to all 

examiners • Testers provide 

laptops

• Brief training will be

• Training provided 

prior to testing • Side by side testing 

with existing ALERT

g FDIC office • Option 2: send 

trainers to Train‐the‐

Trainer session • CSBS provides 

• Brief training will be 

provided to testers

p training

Examiners needed for all aspects of the transition State examiner participation

Examiners needed for all aspects of the transition .  State examiner participation 

Prerequisites & next steps

Prerequisites & next steps

User Acceptance Testing

2nd_{Quarter 2012} d di f Field Pilot 3rd_{Quarter 2012} d l b k Training 3rd_& 4th_{Quarter 2012} d if i • Understanding of 

loan review process • Familiarity with 

existing ALERT 

(helpful)

Abilit t ti i t

• Ideal test banks are 

noncomplex, but 

representative of 

banks in state • Identify possible 

exams scheduled for

• Identify examiners to 

attend  State TTT 

session onsite in DC 

area

• Coordinate with local 

FDIC office if • Ability to participate 

onsite for at least 

one two‐week 

session

• Access to a state‐

issued laptop

exams scheduled for 

May timeframe • EIC/AM should be 

able to attend 

training prior to pilot

FDIC office if  interested in  participating in their  examiner training  session • Contact CSBS to

issued laptop Contact CSBS to 

schedule state‐only 

Technical requirements

Technical requirements

• Target operating systems for the ETS products:

– Microsoft Windows 7, 32-bit – Microsoft Windows 7, 64-bit

F th t t T h S th j it f t t i di t d th ill b From the most recent Tech Survey, the majority of states indicated they are, or will be, using one of the above operating systems by the time ETS ALERT is deployed in mid-2012.

• Software prerequisites for ETS tools and training tools:

• Software prerequisites for ETS tools and training tools:

– Microsoft .NET Framework 4.0

– Microsoft SQL Server 2008 Express R2

– SAP Crystal Reports for Visual Studio 201y p 0 (Report Viewer) ( p )

– Adobe Flash Player 10.3

– Internet Explorer Version 7.0 or Firefox Version 3.5.3, or later

– Adobe Acrobat Reader 9.0, or later

Note: the above software prerequisites are freely available

Importance of state

participation

participation

• Meet the needs of the states

• Testers bring various levels of experience

• Increases consistency

• Training will be

needed at all levels

needed at all levels

Stay informed/get involved

Stay informed/get involved

• CSBS week-in-review

• ETS Information page

– http://www.csbs.org/regulatory/examtools/Pages/ETSInformation Page aspx

Page.aspx

• To coordinate your state’s participation contact:

y

p

p

– Mary Beth Quist (202.728.5722) [email protected] – Kyle Thomas (202.407.7131) [email protected]