Depository Institution Examination Improvement Act of 1985

Depository Institution Examination Improvement Act of 1985 - Redesignates the Financial Institution Examination Council as the Depository Institutions Examination Council. Requires the Council to devise a Federal examiner classification system and, for each of 12 districts approximating the districts of the Federal depository institutions regulatory agencies (regulatory agencies), a regional pay scale in order to provide Federal examiners with compensation and benefits commensurate with private sector accountants and auditors who perform similar functions in such districts. Directs each regulatory agency and each regional bank, branch, or office of such agency to assign and pay examiners accordingly. Directs the Council to prescribe methods of determining travel allowances and pay rates for temporary assignments of examiners.

Exempts from Federal laws and regulations applicable to Government employees the officers and employees of the Board of Governors of the Federal Reserve System, the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, the Federal Home Loan Bank Board, the Federal Savings and Loan Insurance Corporation, and the National Credit Union Administration. Exempts such entities, the Council, Federal reserve banks, and Federal Home Loan Banks from Federal laws and regulations providing for budget and appropriation review and provides that certain assessments received by such entities shall not be considered Government funds or appropriated money. Subjects such entities and banks to audit by the Comptroller General. Repeals authority of the Secretary of the Treasury over the Comptroller of the Currency and staff. Authorizes each regulatory agency to establish procedures for transferring employees affected by this Act out of the civil service and for providing fair and equitable compensation and reimbursement to such employees for any resulting loss of benefits.

Directs the Council to: (1) develop a proposal for consolidating all Federal examiner training programs in one school to be established and conducted by the Council; and (2) report to specified congressional committees on its findings, legislative recommendations, and the savings to the regulatory agencies that would result from such consolidation.

Requires the Council to: (1) study the feasibility of establishing a graduate degree program in financial management analysis for officers and employees of the regulatory agencies and the State depository institutions supervisory agencies (State agencies); and (2) report to specified congressional committees on its findings, legislative recommendations, the cost of establishing and conducting the program, and on the approval or disapproval by each regulatory agency of the Council's proposal for such program.

Requires the Council to establish minimum requirements for examinations of depository institutions by State agencies in order for such an examination to be acceptable for purposes of Federal law. Directs the Council: (1) at least annually, to request each State agency which examines institutions subject to Federal examination to allow the Council to review its examination methods; (2) to notify a State agency if its examination methods do not satisfy such minimum requirements and allow the agency not more than three years to cure any deficiency; and (3) notify each Federal regulatory agency if a State agency refuses to allow a review of its examination methods or fails to remedy any deficiency in its methods. Prohibits any Federal regulatory agency or any regional bank, branch, or other office of such Federal agency to rely on any report of examination by a State agency for which such a notice has been received to fulfill an examination requirement under Federal law.

Requires the Council to establish a State examiner certification program and to evaluate State examiners for certification at the request of a State agency.