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2007 Annual Report

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III. Performance Results Summary

Prior Year's Performance Results
Refer to the respective full Annual Report of prior years for more information on performance results for those years.
(Shaded area indicates no such target existed for that respective year.)

Insurance Program Results
Strategic Goal: Insured depositors are protected from loss without recourse to taxpayer funding.
Annual Performance Goals and Targets 2006 2005 2004
1. Respond promptly to all financial institution closings and emerging issues.
If the failure occurs on a Friday, the target is one business day. Not Applicable.
No Failures.
Not Applicable.
No Failures.
Achieved.
If a failure occurs on any other day of the week, the target is two business days. Not Applicable. No Failures. Not Applicable. No Failures. Not Applicable. All failures occurred on a Friday
Review comments received from the advance notice of proposed rulemaking on Large-Bank Deposit Insurance Determination Modernization, consult with stakeholders, and make a determination on how to proceed. Achieved.  
2. Identify and address risks to the insurance funds.
Assess the insurance risks in 100 percent of large insured depository institutions and adopt appropriate strategies. Achieved. Achieved. Achieved.
Identify and follow up on 100 percent of issues raised through off-site review and analysis. Achieved.  
Identify and follow up on 100 percent of referrals.   Achieved. Achieved.
Analyses are included in regular publications or as ad hoc reports on a timely basis.   Achieved.
Conduct industry outreach activities aimed at the banking community and industry trade groups to discuss current trends and concerns and to inform bankers about available FDIC resources.   Achieved.
3. Maintain sufficient and reliable information on insured depository institutions.
Implement a modernized Call Reporting process during the second Call Reporting period in 2005.   Not Achieved.  
Implement a modernized Call Reporting process by December 31, 2004.   Not Achieved.
4. Disseminate data and analyses on issues and risks affecting the financial services industry to bankers, supervisors, the public and other stakeholders.
Results of research and analyses are disseminated in a timely manner through regular publications, ad hoc reports and other means. Achieved. Achieved.  
Industry outreach activities are undertaken to inform bankers and other stakeholders about current trends, concerns and other available FDIC resources. Achieved. Achieved.  
5. Maintain and improve the deposit insurance system.
Develop and implement an assessment credit and dividends system and a new deposit insurance pricing system. Achieved.  
Implement deposit insurance reform legislation in accordance with statutorily prescribed time frames. Achieved. Not Applicable. Legislation enacted Feb. 8, 2006. Not Applicable. Legislation not enacted in 2004.
Provide information and analysis to Congressional committees in support of deposit insurance reform legislation.   Achieved. Achieved.
Obtain legislative support for a proposed assessment credit and rebate system and a new deposit insurance pricing system.   Achieved. Achieved.
Enhance the effectiveness of the reserving methodology by applying sophisticated analytical techniques to review variances between projected losses and actual losses, and by adjusting the methodology accordingly. Achieved. Achieved. Achieved.
Set assessment rates to maintain the insurance fund reserve ratio between 1.15 and 1.50 percent of estimated insured deposits. Achieved.  
Set assessment rates to maintain the insurance funds at the designated reserve ratio (DRR), or return them to the DRR if they fall below it, as required by statute.   Achieved. Achieved.
When deposit insurance reform legislation is enacted, promulgate rules and regulations establishing criteria for replenishing the Deposit Insurance Fund when it falls below the low end of the range.   Not Applicable.
Legislation enacted Feb. 8, 2006.
Not Applicable. Legislation not enacted in 2004.
Enhance the working prototype of the integrated fund model for financial risk management.   Achieved.  
Develop a working prototype of a new, integrated fund model for financial risk management.   Achieved.
Host conference, present findings from the study and obtain feedback from scholars and industry representatives and other interested parties.   Not Achieved.
Implement an FDIC Center for Financial Research with enhanced ties to the academic community.   Achieved.
Implement enhancements to the reserving process and methodology in accordance with recommendations from a comprehensive 2003 review.   Achieved.
6. Provide educational information to insured depository institutions and their customers to help them understand the rules for determining the amount of insurance coverage on deposit accounts.
Update Insuring Your Deposits (basic deposit insurance brochure for consumers), Your Insured Deposit (comprehensive deposit insurance brochure), and EDIE (Electronic Deposit Insurance Estimator) on the FDIC Web site to reflect changes resulting from enactment of deposit insurance legislation. Achieved.  
Update the consumer version of the EDIE (Electronic Deposit Insurance Estimator) located on the FDIC's Web site.   Achieved.  
Develop and make available to the public an updated Spanish language version of EDIE reflecting deposit insurance reform. Achieved.  
Develop and make available to the public a Spanish language version of the FDIC's 30-minute video on deposit insurance coverage. Achieved.  
Respond to 90 percent of inquiries from consumers and bankers about FDIC deposit insurance coverage within time frames established by policy. Achieved.  
Respond to 90 percent of written inquiries within time frames established by policy. Achieved.  
Develop a CD-ROM and Internet-based resource for bankers on the deposit insurance rules.   Achieved.

 

Supervision and Consumer Protection Program Results
Strategic Goal: FDIC-supervised institutions are safe and sound.
Annual Performance Goals and Targets. 2006 2005 2004
1. Conduct on-site risk management examinations to assess the overall financial condition, management practices and policies, and compliance with applicable laws and regulations of FDIC-supervised depository institutions.
One hundred percent of required risk management examinations (including a review for Bank Secrecy Act (BSA) compliance are conducted on schedule. Achieved. Achieved. Achieved. (Excludes BSA.)
2. Take prompt and effective supervisory action to address issues identified during the FDIC examination of FDIC-supervised institutions that receive a composite Uniform Financial Institutions Rating of "4" or "5" (problem institutions.) Monitor FDIC-supervised insured depository institutions' compliance with formal and informal enforcement actions.
One hundred percent of follow-up examinations are conducted within 12 months of completion of the prior examination. Achieved. Achieved. Achieved.
3. Increase regulatory knowledge to keep abreast of current issues related to money laundering and terrorist financing.
At least 10 percent of BSA/AML subject-matter experts nationwide are certified under the Association of Certified Anti-Money Laundering Specialists certification program. Achieved.  
4. Increase industry and regulatory awareness of emerging/high-risk areas.
The number of trained BSA/AML subject-matter experts increased to 300.   Achieved.  
Advanced training is completed for all BSA/AML subject-matter experts.   Achieved.  
At least one outreach session per region.   Achieved.  
5. More closely align regulatory capital with risk in large or multinational banks.
Publish a Notice of Proposed Rulemaking (NPR). Achieved.  
Participate in the continuing analysis of the projected results of the new capital regime. Achieved.  
Notice of Proposed Rulemaking (NPR) and associated examination guidance for implementing the new Basel Capital Accord are published for comment.   Achieved.  
Quantitative Impact Study 4 is completed.   Achieved.  
6. More closely align regulatory capital with risk in banks not subject to Basel II capital rules.
Develop a Notice of Proposed Rulemaking (NPR) for public issuance. Achieved.  
7. Ensure that FDIC-supervised institutions that plan to operate under the new Basel Capital Accord are making satisfactory progress toward meeting required qualification standards.
On-site examinations or off-site analyses are performed for all FDIC-supervised banks that intend to operate under Basel II to ensure that they are effectively working toward meeting required qualification standards. Achieved. Achieved.  
Strategic Goal: Consumers' rights are protected and FDIC-supervised institutions invest in their communities.
1. Conduct CRA and compliance examinations in accordance with the FDIC's examination frequency policy.
One hundred percent of required examinations are conducted within time frames established by FDIC policy. Achieved. Achieved. Achieved.
2. Take prompt and effective supervisory action to monitor and address problems identified during compliance examinations of FDIC-supervised institutions that received a "4" or "5" rating for compliance with consumer protection and fair lending laws.
One hundred percent of follow-up examinations or related activities are conducted within 12 months from the date of a formal enforcement action to confirm that the institution is in compliance with the enforcement action. Achieved. Achieved. Achieved.
3. Provide effective outreach and technical assistance on topics related to the CRA, fair lending, and community development.
200,000 additional individuals are taught using the Money Smart curriculum. Achieved. Achieved. Achieved.
125 technical assistance (examination support) efforts or banker/community outreach activities are conducted related to CRA, fair lending, or community development. Achieved. Achieved. Achieved.
200 additional members are added to the Money Smart Alliance.   Achieved. Achieved.
20,000 additional copies of the Money Smart curricula are distributed.   Achieved. Achieved.
4. Effectively meet the statutory mandate to investigate and respond to consumer complaints about FDIC-supervised financial institutions.
Responses are provided to 90 percent of written complaints within time frames established by policy. Achieved. Achieved. Achieved.

 

Receivership Management Program Results
Strategic Goal: Recovery to creditors of receivership is achieved.
Annual Performance Goals and Targets 2006 2005 2004
1. Market failing institutions to all known qualified and interested potential bidders.
Contact all known qualified and interested bidders. Not Applicable. No Failures. Not Applicable. No Failures. Achieved.
2. Value, manage, and market assets of failed institutions and their subsidiaries in a timely manner to maximize net return.
Ninety percent of the book value of a failed institution's marketable assets are marketed within 90 days of failure. Not Applicable. No Failures. Not Applicable. No Failures.  
Eighty-five percent of book value of a failed institution's marketable assets are marketed within 90 days of failure.   Achieved.
3. Manage the receivership estate and its subsidiaries toward an orderly termination.
Terminate all receiverships within 90 days of the resolution of all impediments. Achieved.  
Inactivate 75 percent of receiverships managed through the Receivership Oversight Program within three years of the failure date.   Not Achieved. Achieved.
4. Conduct investigations into all potential professional liability claim areas in all failed insured depository institutions and decide as promptly as possible to close or pursue each claim, considering the size and complexity of the institution.
For 80 percent of all claim areas, a decision is made to close or pursue claims within 18 months of the failure date. Not Applicable. No Failures. Achieved. Achieved.



Last Updated 04/25/2008 communications@fdic.gov