Financial Examiners

Summary

financial examiners image
Financial examiners ensure compliance with laws governing financial institutions and transactions.
Quick Facts: Financial Examiners
2014 Median Pay $76,310 per year
$36.69 per hour
Typical Entry-Level Education Bachelor's degree
Work Experience in a Related Occupation None
On-the-job Training Moderate-term on-the-job training
Number of Jobs, 2014 38,200
Job Outlook, 2014-24 10% (Faster than average)
Employment Change, 2014-24 3,700

What Financial Examiners Do

Financial examiners ensure compliance with laws governing financial institutions and transactions. They review balance sheets, evaluate the risk level of loans, and assess bank management.

Work Environment

Most financial examiners work for the finance and insurance industry, the federal government, or state governments. Most financial examiners worked full time in 2014.

How to Become a Financial Examiner

Financial examiners typically need a bachelor’s degree that includes some coursework in accounting. Entry-level examiners are trained on the job by senior examiners.

Pay

The median annual wage for financial examiners was $76,310 in May 2014.

Job Outlook

Employment of financial examiners is projected to grow 10 percent from 2014 to 2024, faster than the average for all occupations. New regulations will likely create a need for more examiners, especially in financial institutions.

State & Area Data

Explore resources for employment and wages by state and area for financial examiners.

Similar Occupations

Compare the job duties, education, job growth, and pay of financial examiners with similar occupations.

More Information, Including Links to O*NET

Learn more about financial examiners by visiting additional resources, including O*NET, a source on key characteristics of workers and occupations.

What Financial Examiners Do

Financial examiners
Financial examiners working in consumer compliance monitor lending activity to ensure that borrowers are treated fairly.

Financial examiners ensure compliance with laws governing financial institutions and transactions. They review balance sheets, evaluate the risk level of loans, and assess bank management.

Duties

Financial examiners typically do the following:

  • Monitor the financial condition of banks and other financial institutions
  • Review balance sheets, operating income and expense accounts, and loan documentation to confirm institution assets and liabilities
  • Prepare reports that detail an institution’s safety and soundness
  • Examine the minutes of meetings of managers and directors
  • Train other examiners in the financial examination process
  • Review and analyze new regulations and policies to determine their impact on the organization
  • Establish guidelines for procedures and policies that comply with new and revised regulations

Financial examiners typically work in one of two main areas: risk scoping or consumer compliance.

Those working in risk scoping evaluate the health of financial institutions. Their role is to ensure that banks and other financial institutions offer safe loans and that they have enough cash on hand to handle unexpected losses. These procedures help ensure that the financial system as a whole remains stable. These examiners also evaluate the performance of bank managers.

Financial examiners working in consumer compliance monitor lending activity to ensure that borrowers are treated fairly. They ensure that banks extend loans that borrowers are likely to be able to pay back. They help borrowers avoid “predatory loans”—loans that may generate profit for banks through high interest payments but may be costly to borrowers and damage their credit scores. Examiners also ensure that banks do not discriminate against borrowers based on ethnicity or other characteristics.

Work Environment

Financial examiners
Financial examiners must pay close attention to details when reviewing balance sheets.

Financial examiners held about 38,200 jobs in 2014. The industries that employed the most financial examiners were as follows:

Federal government 19%
Depository credit intermediation 18
State government, excluding education and hospitals 13
Securities, commodity contracts, and other financial investments and related activities 12
Management of companies and enterprises 11

Financial examiners typically work in offices. They frequently have to travel to inspect a bank onsite.

Work Schedules

Most financial examiners worked full time in 2014.

How to Become a Financial Examiner

Financial examiners
Examiners working for the Federal Deposit Insurance Corporation (FDIC) must have at least six semester hours in accounting.

Financial examiners typically need a bachelor’s degree that includes some coursework in accounting. Entry-level examiners are trained on the job by senior examiners.

Education

Specific requirements for financial examiners vary between federal and state governments. However, all financial examiners typically need a bachelor’s degree that includes some coursework in accounting, finance, economics, or a related field. Examiners working for the Federal Deposit Insurance Corporation (FDIC) must have at least 6 semester hours in accounting.

Training

Once hired, financial examiners receive on-the-job training. Entry-level workers begin under the supervision of senior examiners, as they learn their job duties.

Advancement

After a few years of experience, financial examiners can advance to a senior examiner position. Requirements for these positions vary by employer but often require a master’s degree in either accounting or business or becoming a Certified Public Accountant (CPA).

Important Qualities

Analytical skills. Financial examiners need strong analytical skills to evaluate how well the managers of financial institutions are handling risk and whether the individual loans the institution makes are safe.

Detail oriented. Financial examiners must pay close attention to details when reviewing balance sheets to identify risky assets.

Math skills. Financial examiners need good math skills to monitor balance sheets and see if the bank’s or other financial institution’s available cash is dangerously low.

Writing skills. Financial examiners regularly write reports on the safety and soundness of financial institutions. They must be able to explain technical information clearly.

Pay

Financial Examiners

Median annual wages, May 2014

Financial examiners

$76,310

Financial specialists

$66,220

Total, all occupations

$35,540

 

The median annual wage for financial examiners was $76,310 in May 2014. The median wage is the wage at which half the workers in an occupation earned more than that amount and half earned less. The lowest 10 percent earned less than $44,660, and the highest 10 percent earned more than $146,190.

In May 2014, the median annual wages for financial examiners in the top industries in which they worked were as follows:

Federal government $110,920
Securities, commodity contracts, and other financial investments and related activities 82,090
Management of companies and enterprises 75,540
State government, excluding education and hospitals 65,840
Depository credit intermediation 65,530

Most financial examiners worked full time in 2014.

Job Outlook

Financial Examiners

Percent change in employment, projected 2014-24

Financial specialists

10%

Financial examiners

10%

Total, all occupations

7%

 

Employment of financial examiners is projected to grow 10 percent from 2014 to 2024, faster than the average for all occupations. Employment growth for financial examiners will vary by industry group. Implementation of new financial regulations is expected to create a need for more examiners among financial institutions. However, declining overall employment in the federal government will slow growth for these workers.

Demand for these workers has risen in the financial industry because of an increasing number of new regulations. More financial institutions are hiring financial examiners to help navigate the new regulatory environment, and reduce the cost of compliance. Financial examiners’ employment is projected to grow 16 percent from 2014 to 2024 in the finance and insurance industry.

At the federal level, the creation of the Consumer Financial Protection Bureau (CFPB) has increased employment of financial examiners in recent years. As this agency continues to grow, more financial examiner positions will be added. However, overall budget constraints in the federal government may limit employment growth. Employment of financial examiners in the federal government is projected to grow 1 percent from 2014 to 2024.

Employment of financial examiners tends to increase during periods of financial instability. As bank losses and failures become more prevalent during economic downturns, more examiners are needed to enforce regulation. However, during normal economic times, employment tends to be steady.

Job Prospects

Financial examiners should face strong competition for jobs. Those with previous work experience in banking should have the best prospects.

Employment projections data for financial examiners, 2014-24
Occupational Title SOC Code Employment, 2014 Projected Employment, 2024 Change, 2014-24 Employment by Industry
Percent Numeric

SOURCE: U.S. Bureau of Labor Statistics, Employment Projections program

Financial examiners

13-2061 38,200 42,000 10 3,700 [XLSX]

State & Area Data

Occupational Employment Statistics (OES)

The Occupational Employment Statistics (OES) program produces employment and wage estimates annually for over 800 occupations. These estimates are available for the nation as a whole, for individual states, and for metropolitan and nonmetropolitan areas. The link(s) below go to OES data maps for employment and wages by state and area.

Projections Central

Occupational employment projections are developed for all states by Labor Market Information (LMI) or individual state Employment Projections offices. All state projections data are available at www.projectionscentral.com. Information on this site allows projected employment growth for an occupation to be compared among states or to be compared within one state. In addition, states may produce projections for areas; there are links to each state’s websites where these data may be retrieved.

Career InfoNet

America’s Career InfoNet includes hundreds of occupational profiles with data available by state and metro area. There are links in the left-hand side menu to compare occupational employment by state and occupational wages by local area or metro area. There is also a salary info tool to search for wages by zip code.

Similar Occupations

This table shows a list of occupations with job duties that are similar to those of financial examiners.

Occupation Job Duties ENTRY-LEVEL EDUCATION 2014 MEDIAN PAY
Accountants and auditors

Accountants and Auditors

Accountants and auditors prepare and examine financial records. They ensure that financial records are accurate and that taxes are paid properly and on time. Accountants and auditors assess financial operations and work to help ensure that organizations run efficiently.

Bachelor's degree $65,940
Budget analysts

Budget Analysts

Budget analysts help public and private institutions organize their finances. They prepare budget reports and monitor institutional spending.

Bachelor's degree $71,220
Financial analysts

Financial Analysts

Financial analysts provide guidance to businesses and individuals making investment decisions. They assess the performance of stocks, bonds, and other types of investments.

Bachelor's degree $78,620
Loan officers

Loan Officers

Loan officers evaluate, authorize, or recommend approval of loan applications for people and businesses.

Bachelor's degree $62,620
Tax examiners and collectors, and revenue agents

Tax Examiners and Collectors, and Revenue Agents

Tax examiners and collectors, and revenue agents ensure that federal, state, and local governments get their tax money from businesses and citizens. They review tax returns, conduct audits, identify taxes owed, and collect overdue tax payments.

Bachelor's degree $51,120
Management analysts

Management Analysts

Management analysts, often called management consultants, propose ways to improve an organization’s efficiency. They advise managers on how to make organizations more profitable through reduced costs and increased revenues.

Bachelor's degree $80,880
Personal financial advisors

Personal Financial Advisors

Personal financial advisors provide advice on investments, insurance, mortgages, college savings, estate planning, taxes, and retirement to help individuals manage their finances.  

Bachelor's degree $81,060
Suggested citation:

Bureau of Labor Statistics, U.S. Department of Labor, Occupational Outlook Handbook, 2016-17 Edition, Financial Examiners,
on the Internet at http://www.bls.gov/ooh/business-and-financial/financial-examiners.htm (visited February 08, 2016).

Publish Date: Thursday, December 17, 2015