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2003 Annual Report

II. 2003 Performance Results Summary -
Performance Results by Program and Strategic Goal


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 financial institution closings and emerging issues.
Number of business days after institution failure by which depositors will have access to insured funds either through transfer of deposits to successor insured depository institution or depositor payout. If the failure occurs on a Friday, the target is one business day. Achieved.
If the failure occurs on any other day of the week, the target is two business days. Achieved.
  1. Identify and address risks to the insurance funds.
Assess risks posed by large insured depository institutions. Assess risks in 100 percent of large insured depository institutions and adopt appropriate strategies. Achieved.
Identify and follow up on concerns referred for examination or other action (i.e., contact the insured institutions or primary supervisor). Identify and follow up on 100 percent of referrals. Achieved.
Disseminate data and analyses on current issues and risks affecting the banking industry to bankers, supervisors, stakeholders, and the public. Analyses are included in regular publications or as ad hoc reports on a timely basis. Achieved.
Conduct industry outreach aimed at the banking community and industry trade groups to discuss current trends and concerns and to inform bankers about available FDIC resources. Achieved.
  1. Maintain sufficient and reliable information on insured depository institutions.
Maintain and improve the Research Information System (RIS), which serves as the foundation of most analysis and statistical reporting for the FDIC. Update and expand data availability in RIS. Achieved.
Develop a more efficient approach to bank data collection and management. Determine Call Report Modernization system development approach; prepare migration plan for the implementation of data editing, storage and distribution facility for Call Report data; complete reconciliation of bank structure databases; and implement standard business rules and data definitions for Call Report information. Achieved.
  1. Maintain and improve the deposit insurance system.
Continue to pursue changes in the deposit insurance system in accordance with proposals submitted to Congress in 2002. Work with Congress to develop and pass a reform package. Not Achieved. (see pages 12 & 13.)
Develop final pricing recommendations and implementation plans for inclusion in a notice-and-comment rulemaking during 2003. Achieved.
If deposit insurance reform is passed, implement legislation in a timely manner. Not Applicable
Develop and analyze baseline data of implemented modification results. Achieved.
Continue to identify and review possible modifications to the Risk-Related Premium System (RRPS). Assess improvements to the objective screens for the RRPS that identify financial institutions engaging in excessive risk taking, such as certain types of credit, market, and operational risks. Achieved.
Make appropriate changes to the current methodology for projecting losses in failing financial institutions and establishing related loss reserves for the deposit insurance funds. Review discrepancies between projected failed assets and actual failed assets by applying sophisticated analytical techniques to examine the effectiveness of the loss projection model and adjust the methodology for projecting losses accordingly. Achieved.
Perform comprehensive review of all aspects of the reserving process and methodology and implement enhancements as necessary. Achieved.
Maintain fund adequacy. Set assessment rates to maintain the insurance funds at or above the designated reserve ratio, or to return them to the designated reserve ratio if they fall below it, as required by statute. If deposit insurance reform legislation becomes law in 2003, promulgate rules and regulations establishing criteria for replenishing the deposit insurance fund when it falls below the low end of the range. Achieved.
Conduct a study on the “Future of Banking.” Determine the implications of major trends for the evolution of the industry, development of regulatory policy and management of the deposit insurance funds. Achieved.
Enhance FDIC’s ties to the academic community and upgrade and provide greater visibility to the Corporation’s research activities. Establish an FDIC Center for Financial Research.
 
Achieved.
  1. 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.
Enhance the existing Electronic Deposit Insurance Estimator (EDIE) Banker version. Issue a new version of the EDIE (Banker version) that accommodates corporate and organization accounts as well as any changes to the deposit insurance rules that may be adopted. Achieved.


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 safety and soundness examinations to assess an FDIC-supervised insured depository institution’s overall financial condition, management practices and policies, and compliance with applicable regulations.
Conduct required examinations in accordance with statute and FDIC policy. One hundred percent of required examinations are conducted on time.
 
Achieved.
  1. Take prompt supervisory actions to address problems found during the FDIC examination of FDIC-supervised institutions identified as problem insured depository institutions. Monitor FDIC-supervised insured depository institution's compliance with formal and informal enforcement actions.
The number of months between last examination of a problem bank and follow-up examination.
 
Follow-up examination conducted within 12 months of completing the prior examination. Achieved.
Strategic Goal: Consumers’ rights are protected and FDIC-supervised institutions invest in their communities.
Annual Performance Goal Indicator Target Results
  1. Provide effective outreach and technical assistance on topics related to CRA, fair lending, and community development.
Additions to the Money Smart Alliance and the number of Money Smart curricula provided. By December 31, 2003, cumulative totals of 400 Money Smart Alliance members and 40,000 Money Smart curricula provided. Achieved.
Outreach activities and technical assistance. Conduct or participate in 125 Money Smart events, technical assistance efforts (examination support), or banker/community outreach activities related to CRA, fair lending, or community development. Achieved.
  1. Effectively meet the statutory mandate to investigate and respond to consumer complaints about FDIC-supervised financial institutions.
Timely responses to written complaints. Ninety percent of written complaints are responded to within time frames established by policy. Achieved.
  1. Conduct comprehensive and compliance-only examinations in accordance with FDIC examination frequency policy.
Conduct required examinations in accordance with FDIC policy. One hundred percent of required examinations are conducted within time frames established by FDIC policy. Achieved.
  1. Take prompt supervisory actions and monitor all institutions rated “4” or “5” for compliance to address problems identified during compliance examinations.
Timely follow-up examination and related activity confirm whether the institution is in compliance with the enforcement action. A follow-up examination or related activity is conducted within 12 months from the date of a formal enforcement action. Achieved.


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.
List of qualified and interested bidders. Contact all known qualified and interested bidders. Achieved.
  1. Value, manage, and market assets of failed institutions and their subsidiaries in a timely manner to maximize net return.
Failed institutions' assets marketed. Eighty-five percent of book value of a failed institution’s marketable assets are marketed within 90 days of failure. Achieved.
  1. Manage the receivership estate and its subsidiaries toward an orderly termination.
Timely termination of new receiverships. Terminate 75 percent of receiverships managed through the Receivership Oversight Program within three years of the failure date. Not Achieved. (see page 19.)
  1. Conduct investigations into all potential professional liability claim areas in all failed insured depository institutions, and decide to close or pursue each claim as promptly as possible, 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 within 18 months after the failure date. For 80 percent of all claim areas, a decision is made to close or pursue the claim. Achieved.


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Last Updated 02/24/2004 communications@fdic.gov