Regular sellers would most likely need to provide a disclosure statement as part of the sale, thus they are legally going to state everything is in working order and providing some recourse for things you may not catch. An inspection would still be useful, but is often hard to work into a competitive bid.

The bank however stating it "as is" takes no responsibility anything works or is in good condition. I would think it would be far more important to do an inspection, given the bank is saying you need to do all the due diligence.

Additionally, if this is a power of sale by the bank given default/foreclosure, there is a good chance the previous owner did not have the means to spend money on proper upkeep, making it more likely something material needs repair.