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2008 Annual Report



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III. Performance Results Summary

Prior Years’ Performance Results
Refer to the respective full Annual Report of prior years for more information on performance results for those years.

Insurance Program Results
Strategic Goal: Insured depositors are protected from loss without recourse to taxpayer funding.
Annual Performance Goals and Targets 2007 2006 2005
1. Respond promptly to all financial institution closings and emerging issues.
  • Provide access to insured funds in one business day if the failure occurs on a Friday.
Achieved. Not Applicable. No Failures. Not Applicable. No Failures.
  • Provide access to insured funds in two business days if the failure occurs on any other day of the week.
Achieved. Not Applicable. No Failures. Not Applicable. No Failures.
  • Review comments received in response to the Advance Notice of Proposed Rulemaking on Large-Bank Deposit Insurance Determination Modernization.
Achieved. Achieved.  
2. Identify and address risks to the Deposit Insurance Fund.
  • Assess the insurance risks in 100 percent of insured depository institutions and adopt appropriate strategies.
Achieved. Achieved. Achieved.
  • Identify and follow up on 100 percent of material issues raised through off-site review and analysis.
Achieved. Achieved.  
  • Identify and review the emerging areas of risk, including mortgage lending, hedge funds, commercial real estate lending, derivatives, money laundering, illicit financial transactions and the international operations of insured depository institutions.
Achieved.    
  • Address potential risks from cross-border banking instability through coordinated review of critical issues and, where appropriate, agreements with key authorities.
Achieved.    
  • Identify and follow up on 100 percent of referrals.
    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.
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. Achieved.
  • Industry outreach activities are undertaken to inform bankers and other stakeholders about current trends, concerns and other available FDIC resources.
Achieved. Achieved. Achieved.
5. Maintain and improve the deposit insurance system.
  • Implement the new deposit insurance pricing system.
Achieved.    
  • Complete and issue guidance on the pricing of deposit insurance for large banks.
Achieved.    
  • Publish an ANPR seeking comment on a permanent dividend system.
Achieved.    
  • 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.
  • Provide information and analysis to Congressional committees in support of deposit insurance reform legislation.
    Achieved.
  • Obtain legislative support for a proposed assessment credit and rebate system and a new deposit insurance pricing system.
    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. 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.
  • 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.
  • Enhance the working prototype of the integrated fund model for financial risk management.
    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.

  • Publish a comprehensive and authoritative resource guide for bankers, attorneys, financial advisors and similar professionals on the FDIC’s rules and requirements for deposit insurance coverage of revocable and irrevocable trust accounts.
Achieved.    
  • Conduct a series of national teleconferences for insured financial institutions to address current questions and issues relating to FDIC insurance coverage of deposit accounts.
Achieved.    
  • 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 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. Achieved.  
  • Respond to 90 percent of written inquiries within time frames established by policy.
  Achieved.  
7. Expand and strengthen the FDIC’s leadership role in providing technical guidance, training, consulting services and information to international governmental banking and deposit insurance organizations.
  • Undertake global outreach activities to inform and train foreign bank regulators and deposit insurers.
Achieved.    
  • Foster strong relationships with international banking regulators and associations that promote sound banking policies in order to provide leadership and guidance in global banking supervision and regulations, failure resolution and deposit insurance.
Achieved.    



Supervision and Consumer Protection Program Results
Strategic Goal: FDIC-supervised institutions are safe and sound.
Annual Performance Goals and Targets 2007 2006 2005
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 reviews of information technology (IT) and Bank Secrecy Act (BSA) compliance) are conducted on schedule.
Achieved. Achieved. Achieved.
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 institution). 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.
  • An additional 10 percent (at least 10 percent for year 2006) of BSA/AML subject-matter experts nationwide are certified under the Association of Certified Anti-Money Laundering Specialists certification program.
Achieved. 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 while maintaining capital at prudential levels.
  • Further develop the Basel II framework to ensure that it does not result in a substantial reduction in risk-based capital requirements or significant competitive inequities among different classes of banks. Consider alternative approaches for implementing the Basel Capital Accord.
Achieved.    
  • Participate in the continuing analysis of the projected results of the new capital regime.
Achieved.    
  • Promote international cooperation on the adoption of supplemental capital measures in countries that will be operating under Basel II.
Achieved.    
  • 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 while maintaining capital at prudential levels.
  • Complete rulemaking on Basel IA.
Not Applicable.    
  • 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 II Capital Accord are well positioned to respond to the new capital requirements.
  • 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. Achieved.
8. Reduce regulatory burden on the banking industry while maintaining appropriate consumer protection and safety and soundness safeguards.
  • Applicable provisions of the Financial Services Regulatory Relief Act of 2006 (FSRRA) are implemented in accordance with statutory requirements.
Partially Achieved.    
  • Support is provided to the Government Accountability Office (GAO), as requested, for studies required under FSRRA.
Achieved.    
  • State AML assessments of MSBs are incorporated into FDIC risk management examinations in states where MSB AML regulatory programs are consistent with FDIC risk management standards.
Partially 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. Determine the need for changes in current FDIC practices for following up on actions on significant violations of consumer compliance laws and regulations identified during examinations of banks for compliance with consumer protection and fair lending laws.
  • An analysis is completed for all institutions on the prevalence and scope of repeat instances of significant violations from the previous compliance examination.
Achieved.    
  • A determination is made regarding the need for changes to current FDIC and FFIEC guidance on follow-up supervisory action on significant violations identified during compliance examinations based on the substance and level of risk posed to consumers by these repeat violations.
Achieved.    
4. 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.
  • 120 school systems and government entities are contacted to make them aware of the availability of Money Smart as a tool to teach financial education to high school students.
Achieved.    
  • A review of existing risk management and compliance/CRA examination guidelines and practices is completed to ensure that they encourage and support the efforts of insured financial institutions to foster economic inclusion, consistent with safe and sound banking practices.
Achieved.    
  • A pilot project is conducted with banks near military installations to provide small-dollar loan alternatives to high-cost payday lending.
Achieved.    
  • Strategies are developed and implemented to encourage FDIC-supervised institutions to offer small-denomination loan programs.
Achieved.    
  • Research is conducted and findings disseminated on programs and strategies to encourage and promote broader economic inclusion within the nation’s banking system.
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.
  • 20,000 additional copies of the Money Smart curricula are distributed.
    Achieved.
5. 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 2007 2006 2005
1. Market failing institutions to all known qualified and interested potential bidders.
  • Contact all known qualified and interested bidders.
Achieved. Not Applicable. No Failures. Not Applicable. No Failures.
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.
Achieved. Not Applicable. No Failures. Not Applicable. No Failures.
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. Achieved.  
  • Inactivate 75 percent of receiverships managed through the Receivership Oversight Program within three years of the failure date.
    Not 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 claims within the 18-month period. Not Applicable. No Failures. Achieved.

Last Updated 06/18/2009 communications@fdic.gov