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2009 Annual Report



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III. Performance Results Summary

Performance Results by Program and Strategic Goal

2009 Insurance Program Results
Strategic Goal: Insured depositors are protected from loss without recourse to taxpayer funding.
# Annual Performance Goal Indicator Target Results
1 Respond promptly to all financial institution closings and related emerging issues. Number of business days after institution failure that depositors have access to insured funds either through transfer of deposits to the successor insured depository institution or depositor payout. Depositors have access to insured funds within one business day if the failure occurs on a Friday. Achieved.
Depositors have access to insured funds within two business days if the failure occurs on any other day of the week. Achieved.
Insured depositor losses resulting from a financial institution failure. There are no depositor losses on insured deposits. Achieved.
No appropriated funds are required to pay insured depositors. Achieved.
2 Identify and address risks to the DIF. Insurance risks posed by insured depository institutions. Assess the insurance risks in large insured depository institutions and adopt appropriate strategies. Achieved.
Concerns referred for examination or other action. Identify and follow up on all material issues raised through off-site review and analysis. Achieved.
Emerging risks to the DIF. Identify and analyze existing and emerging areas of risk. Achieved.
3 Disseminate data and analyses on issues and risks affecting the financial services industry to bankers, supervisors, the public, and other stakeholders. Scope and timeliness of information dissemination on identified or potential issues and risks. Results of research and analyses are disseminated in a timely manner through regular publications, ad hoc reports, and other means. Achieved.
Industry outreach activities are undertaken to inform bankers and other stakeholders about current trends, concerns, and other available FDIC resources. Achieved.
4 Effectively administer temporary financial stability programs. Administration of the Temporary Liquidity Guarantee Program (TLGP). Provide liquidity to the banking system by guaranteeing noninterest-bearing transaction deposit accounts and new senior unsecured debt issued by eligible institutions under the TLGP. Achieved.
Implement an orderly phase-out of new guarantees under the program when the period for issuance of new debt expires. Achieved.
Administration of the Capital Purchase Program (CPP). Substantially complete by September 30, 2009, the review of and recommendations to the Department of the Treasury on CPP applications from FDIC-supervised institutions. Achieved.
Implementation of the Legacy Loans Program (LLP). Expeditiously implement procedures for the LLP, including the guarantee to be provided for debt issued by Public Private Investment Funds, and provide information to financial institutions and private investors potentially interested in participating. Achieved.
Oversight of the use of financial stability resources by FDIC-supervised institutions. Expeditiously implement procedures to review the use of CPP funds, TLGP guarantees, and other resources made available under financial stability programs during examinations of participating FDIC-supervised institutions. Achieved.
5 Maintain and improve the deposit insurance system. Enhance the risk-based pricing system. Adopt and implement revisions to the pricing regulations that provide for greater risk differentiation among insured depository institutions reflecting both the probability of default and loss in the event of default. Achieved.
Revise the guidelines and enhance the additional risk measures used to adjust assessment rates for large institutions. Achieved.
Loss reserves. 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.
Fund adequacy. Set assessment rates to restore the insurance fund reserve ratio to at least 1.15 percent of estimated insured deposits by year-end 2015. Achieved.
Monitor progress in achieving the restoration plan. 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. Timeliness of responses to insurance coverage inquiries. Respond to 90 percent of written inquiries from consumers and bankers about FDIC deposit insurance coverage within two weeks. Achieved.
Public education campaign to increase awareness of deposit insurance changes and expected 2010 changes. Conduct at least three sets of Deposit Insurance Seminars/teleconferences per quarter for bankers. Achieved.
Enter into deposit insurance educational partnerships with consumer organizations to educate consumers. Achieved.
Expand avenues for publicizing deposit insurance rules and resources to consumers through a variety of media. 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. Scope of information sharing and assistance available to international governmental bank regulatory and deposit insurance entities. Undertake 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 supervision and regulation, failure resolution, and deposit insurance practices. Achieved.

 

2009 Supervision and Consumer Protection Program Results
Strategic Goal: FDIC-supervised institutions are safe and sound.
# Annual Performance Goal Indicator Target Results
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. Percentage of required examinations conducted in accordance with statutory requirements and FDIC policy. One hundred percent of required risk management examinations are conducted on schedule. 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 "3", "4", or "5" (problem institution). Monitor FDIC-supervised insured depository institutions' compliance with formal and informal enforcement actions. Percentage of follow-up examinations of 3-, 4-;, and 5-rated institutions conducted within required time frames. One hundred percent of follow-;up examinations are conducted within 12 months of completion of the prior examination to confirm that identified problems have been corrected. Achieved.
3 Assist in protecting the infrastructure of the U.S. banking system against terrorist financing, money laundering, and other financial crimes. Percentage of required examinations conducted in accordance with statutory requirements and FDIC policy. One hundred percent of required Bank Secrecy Act examinations are conducted on schedule. Achieved.
4 More closely align regulatory capital with risk and ensure that capital is maintained at prudential levels. Preliminary results of new capital requirements. Conduct analyses of early results of the performance of new capital rules in light of recent financial turmoil as information becomes available. Achieved.
Improvements to capital requirements. Working domestically and internationally, develop improvements to regulatory capital requirements based on the experience of the recent financial market turmoil. Achieved.
Strategic Goal: Consumers' rights are protected and FDIC-supervised institutions invest in their communities.
5 Conduct on-site CRA and compliance examinations to assess compliance with applicable laws and regulations by FDICsupervised depository institutions. Percentage of examinations conducted in accordance with statutory requirements and FDIC policy. One hundred percent of required examinations are conducted on schedule. Achieved.
6 Take prompt and effective supervisory action to monitor and address problems identified during compliance examinations of FDIC-supervised institutions that receive an overall "3", "4", or "5" rating for compliance with consumer protection and fair lending laws. Percentage of follow-up examinations or visitations of 3- 4-, and 5-rated institutions conducted within required time frames. One hundred percent of follow-up examinations or visitations are conducted within 12 months from the date of an enforcement action to confirm compliance with the prescribed enforcement action. Not Achieved.
7 Scrutinize evolving consumer products, analyze their current or potential impact on consumers and identify potentially harmful or illegal practices. Promptly institute a supervisory response program across FDIC-supervised institutions when such practices are identified. Establishment of supervisory response programs to address potential risks posed by new consumer products. Proactively identify and respond to harmful or illegal practices associated with evolving consumer products. Achieved.
8 Educate consumers about their rights and responsibilities under consumer protection laws and regulations. Communications tools used to educate consumers. Expand use of media, such as the Internet, videos, and MP3 downloads, to disseminate information to the public on their rights and responsibilities as consumers. Achieved.
9 Effectively investigate and respond to consumer complaints about FDIC-supervised financial institutions. Timely responses to written complaints and inquiries. Responses are provided to 95 percent of written complaints and inquiries within time frames established by policy, with all complaints and inquiries receiving at least an initial acknowledgment within two weeks. Achieved.
10 Provide effective outreach related to CRA, fair lending, and community development. Number of outreach activities conducted, including technical assistance activities. Conduct 50 technical assistance (examination support) efforts or banker/community outreach activities related to CRA, fair lending, and community development. Achieved.
Expanded access to high quality financial education through the Money Smart curriculum. Evaluate the Money Smart initiatives and curricula for necessary updates and enhancements, such as games for young people, information on elder financial abuse, and additional language versions, if needed. Achieved.
Initiate a longitudinal survey project to measure the effectiveness of the Money Smart for Young Adults curriculum. Achieved.
Support for expanded foreclosure prevention efforts for consumers at risk of foreclosure (in partnership with NeighborWorks® America and other organizations). Provide technical assistance, support, and consumer outreach activities in all six FDIC regions to at least eight local Neighbor-Works® America affiliates or local coalitions that are providing foreclosure mitigation counseling in high need areas. Achieved.
11 Continue to expand the FDIC's national leadership role in developing and implementing programs and strategies to encourage and promote broader economic inclusion within the nation's banking system. Degree of success achieved in bringing the unbanked/underserved into the financial mainstream through the Alliance for Economic Inclusion (AEI). Expand the number of AEI coalitions by two. Achieved.
Results of pilot small-dollar lending program conducted by participating financial institutions. Analyze quarterly data submitted by participating institutions to identify trends and best practices. Achieved.

 

2009 Receivership Management Program Results
Strategic Goal: Recovery to creditors of receiverships is achieved.
# Annual Performance Goal Indicator Target Results
1 Market failing institutions to all known qualified and interested potential bidders. Scope of qualified and interested bidders solicited. Contact all known qualified and interested bidders. Achieved.
2 Value, manage, and market assets of failed institutions and their subsidiaries in a timely manner to maximize net return. Percentage of failed institution's assets marketed. Ninety percent of the book value of a failed institution's marketable assets is marketed within 90 days of failure. Achieved.
Enhancements to contract management program. Identify and implement program improvements to ensure efficient and effective management of the contract resources used to perform receivership management functions. Achieved.
3 Manage the receivership estate and its subsidiaries toward an orderly termination. Timely termination of new receiverships. Terminate at least 75 percent of new receiverships within three years of the date of failure. Achieved.
4 Conduct investigations into all potential professional liability claim areas for 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. Percentage of investigated claim areas for which a decision has been made to close or pursue the claim. For 80 percent of all claim areas, a decision is made to close or pursue claims within 18 months of the failure date. Achieved.




Last Updated 07/16/2010 communications@fdic.gov