Each depositor insured to at least $250,000 per insured bank



Home > About FDIC > Financial Reports > 2006 Annual Report




2006 Annual Report

Previous | Contents | Next

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 all financial institution closings and emerging issues. Number of business days after institution failure that depositors 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. Not Applicable.
No failures in 2006.
See pg. 30.
If a failure occurs on any other day of the week, the target is two business days. Not Applicable.
No failures in 2006.
See pg. 30.
Enhancement of FDIC capabilities to make a deposit insurance determination for a large-bank failure. 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.
See pg. 31.
2 Identify and address risks to the insurance fund. Insurance risks posed by large insured depository institutions. Assess the insurance risks in 100 percent of large insured depository institutions and adopt appropriate strategies. Achieved.
See pg. 46.
Concerns referred for examination or other action. Identify and follow up on 100 percent of issues raised through off-site review and analysis. Achieved.
See pg. 46.
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.
See pgs. 17-18.
Industry outreach activities are undertaken to inform bankers and other stakeholders about current trends, concerns and other available FDIC resources. Achieved.
See pgs. 17-18, 23.
4 Maintain and improve the deposit insurance system. Implementation of deposit insurance reform. Develop and implement an assessment credit and dividends system and a new deposit insurance pricing system. Achieved.
See pg. 14.
Implement deposit insurance reform legislation in accordance with statutorily prescribed time frames. Achieved.
See pgs. 13-15.
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.
See pg. 46.
Fund adequacy. Set assessment rates to maintain the insurance fund reserve ratio between 1.15 and 1.50 percent of estimated insured deposits. Achieved.
See pg. 14.
5 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. Utility of educational tools available to bankers and consumers. 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 reform legislation. Achieved.
See pg. 28.
Develop and make available to the public an updated Spanish language version of EDIE reflecting deposit insurance reform. Achieved.
See pgs. 28.
Develop and make available to the public a Spanish language version of the FDIC's 30-minute video on deposit insurance coverage. Achieved.
See pg. 29.
Respond to 90 percent of inquiries from consumers and bankers about FDIC deposit insurance coverage within time frames established by policy. Achieved.
See pg. 28.
Respond to 90 percent of written inquiries within time frames established by policy. Achieved.
See pg. 28.

 

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 (including a review for Bank Secrecy Act (BSA) compliance) are conducted on schedule. Achieved.
See pg. 19.
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. Percentage of follow-up examinations of problem institutions conducted within required time frames. One hundred percent of follow-up examinations are conducted within 12 months of completion of the prior examination. Achieved.
See pg. 19.
3 Increase regulatory knowledge to keep abreast of current issues related to money laundering and terrorist financing. Certification of BSA/AML subject-matter experts. 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.
See pg. 26.
4 More closely align regulatory capital with risk in large or multinational banks. Continuation of preparatory activities related to the implementation of the new Basel Capital Accord (Basel II). Publish a Notice of Proposed Rulemaking (NPR). Achieved.
See pgs. 15-16.
Participate in the continuing analysis of the projected results of the new capital regime. Achieved.
See pgs. 15-16.
5 More closely align regulatory capital with risk in banks not subject to Basel II capital rules. Development of a revised capital framework proposal for institutions not subject to Basel II. Develop a Notice of Proposed Rulemaking (NPR) for public issuance. Achieved.
See pgs. 15-16.
6 Ensure that FDIC-supervised institutions that plan to operate under the new Basel Capital Accord are making satisfactory progress toward meeting required qualification standards. Percentage of on-site examinations or off-site analyses performed. 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.
See pg. 16.
Strategic Goal: Consumers' rights are protected and FDIC-supervised institutions invest in their communities.
7 Conduct CRA and compliance examinations in accordance with the FDIC's examination frequency policy. Percentage of examinations conducted in accordance with required time frames. One hundred percent of required examinations are conducted within time frames established by FDIC policy. Achieved.
See pg. 19.
8 Take prompt and effective supervisory action to monitor and address problems identified during compliance examinations of FDIC-supervised institutions that receive a "4" or "5" rating for compliance with consumer protection and fair lending laws. Percentage of follow-up examinations or related activities conducted within required time frames. 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.
See pg. 19.
9 Provide effective outreach and technical assistance on topics related to the CRA, fair lending, and community development. Number of individuals taking a Money Smart class or using the self-paced curriculum. 200,000 additional individuals are taught using the Money Smart curriculum. Achieved.
See pg. 29.
Number of outreach activities conducted, including technical assistance activities. 125 technical assistance (examination support) efforts or banker/community outreach activities are conducted related to CRA, fair lending, or community development. Achieved.
See pg. 29.
10 Effectively meet the statutory mandate to investigate and respond to consumer complaints about FDIC-supervised financial institutions. Timely responses to written complaints. Responses are provided to 90 percent of written complaints within time frame established by policy. Achieved.
See pg. 28.

 

Receivership Management Program Results
Strategic Goal: Recovery to creditors of receivership 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. Not Applicable.
No failures in 2006.
See pg. 30.
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 book value of a failed institution's marketable assets are marketed within 90 days of failure. Not Applicable.
No failures in 2006.
See pg. 31
3 Manage the receivership estate and its subsidiaries toward an orderly termination. Timely termination of new receiverships. Terminate all receiverships within 90 days of the resolution of all impediments. Achieved.
See pg. 31.
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. 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. Not Applicable.
No failures in 2006.
See pg. 31



Last Updated 03/20/2007 communications@fdic.gov