FDIC ISSUES UPDATES ON THE INSURANCE FUNDS AND AGENCY SPENDING
FOR IMMEDIATE RELEASE PR-34-96 (5-14-96)
Media Contact: Robert M. Garsson (202) 898-6993
The FDIC announced today that the Bank Insurance Fund's
(BIF) net income dropped to $295 million in the first quarter of
1996, from $1.3 billion a year earlier. The decline resulted
almost entirely from the reduction in deposit insurance premiums
last year. The Savings Association Insurance Fund (SAIF), by
contrast, saw its net income rise to $292 million in the first
three months, up $13 million from 1995's first quarter. The
higher earnings resulted primarily from increased earnings on
U.S. Treasury obligations.
The FDIC also released audited year-end financial
information showing the BIF had a balance of $25.5 billion ($1.30
for every $100 of insured deposits) and the SAIF had a balance of
$3.4 billion (47 cents per $100 of insured deposits) at December
The agency also released year-end 1995 information on its
ongoing efforts to streamline, consolidate and reduce its
operations. The FDIC spent $1.37 billion in 1995, 23 percent
below the previous year's level and eight percent below the
amount budgeted for the year.
Congress created the Federal Deposit Insurance Corporation in
1933 to restore public confidence in the nation's banking
system. The FDIC insures deposits at the nation's 12,000 banks
and savings associations and it promotes the safety and soundness
of these institutions by identifying, monitoring and addressing
risks to which they are exposed.
FDIC press releases and other documents are available on the
Internet via the World Wide Web at www.fdic.gov.
They may also be obtained through the FDIC's Public Information
Center, 801 17th St. NW, Room 100, Washington, DC,