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2012 Annual Report

Prior Years’ Performance Results

Refer to the respective full Annual Report of prior years for more information on performance results for those years. Minor wording changes may have been made to reflect current goals and targets. (Shaded areas indicate no such target existed for that respective year.)

Insurance Program Results

Strategic Goal: Insured depositors are protected from loss without recourse to taxpayer funding.

Annual Performance Goals and Targets

2011

2010

2009

1. Respond promptly to all financial institution closings and related emerging issues.

 

Depositors have access to insured funds within one business day if the failure occurs on a Friday.

Achieved.

Achieved.

Achieved.

Depositors have access to insured funds within two business days if the failure occurs on any other day of the week.

Achieved.

Achieved.

Achieved.

There are no depositor losses on insured deposits.

Achieved.

Achieved.

Achieved.

No appropriated funds are required to pay insured depositors.

Achieved.

Achieved.

Achieved.

2. Identify and address risks to the Deposit Insurance Fund (DIF).

 

Assess the insurance risks in large (all for 2008–2009) insured depository institutions and adopt appropriate strategies.

 

 

Achieved.

Identify and follow up on all material issues raised through off-site review and analysis.

 

 

Achieved.

Identify and analyze existing and emerging areas of risk, including non-traditional and subprime mortgage lending, declines in housing market values, mortgage-related derivatives/collateralized debt obligations (CDOs), hedge fund ownership of insured institutions, commercial real estate lending, international risk, and other financial innovations.

 

 

Achieved.

3. Disseminate data and analyses on issues and risks affecting the financial services industry to bankers, supervisors, the public, and other stakeholders on an ongoing basis.

 

Disseminate results of research and analyses 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.

4. Effectively administer temporary financial stability programs.

 

Provide liquidity to the banking system by guaranteeing noninterest-bearing transaction deposit account 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.

Substantially complete by September 30, 2009, the review of and recommendations to the Department of Treasury on CPP applications from FDIC-supervised institutions.

 

 

Achieved.

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.

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 Set assessment rates to restore the insurance fund reserve ratio to the statutory minimum of 1.35 percent of estimated insured deposits by September 30, 2020.

 

Provide updated fund projections to the FDIC Board of Directors by June 30, 2011, and December 31, 2011.

Achieved.

 

 

Recommend changes to deposit insurance assessment rates for the DIF to the FDIC Board as necessary.

Achieved.

 

 

Provide updates to the FDIC Board by June 30, 2011, and December 31, 2011.

Achieved.

 

 

6. Set assessment rates to restore the insurance fund reserve ratio to the statutory minimum of at least 1.15% of estimated insured deposits by year-end 2016, in accordance with the Amended Restoration Plan.

 

Provide updated fund projections to the FDIC Board of Directors by June 30, 2010, and December 31, 2010.

 

Achieved.

 

Recommend deposit insurance assessment rates for the DIF to the FDIC Board, as necessary.

 

Achieved.

 

Provide updates to the FDIC Board by June 30, 2010, and December 31, 2010.

 

Achieved.

 

7. Maintain and improve the deposit insurance 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.

Ensure/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.

Set assessment rates to maintain the insurance fund reserve ratio between 1.15 and 1.50 percent of estimated insured deposits. Restore to 1.15 percent by year-end 2015.

 

 

Achieved.

Monitor progress in achieving the restoration plan.

 

 

Achieved.

8. 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.

 

Conduct at least three sets of deposit insurance seminars/teleconferences (per quarter in 2009) for bankers.

 

 

Achieved.

Respond within two weeks to 95 percent of written inquiries from consumers and bankers about FDIC deposit insurance coverage.

Achieved.

 

 

Conduct at least 12 telephone or in-person seminars for bankers on deposit insurance coverage.

Achieved.

 

Achieved.

Enter into deposit insurance education partnerships with consumer organizations to educate consumers.

 

 

Achieved.

Expand avenues for publicizing deposits insurance rules and resources to consumers through a variety of media.

 

 

Achieved.

9. Expand and strengthen the FDIC’s participation and leadership role in providing technical guidance, training, consulting services, and information to international governmental banking and deposit insurance organizations; and in supporting robust international deposit insurance and banking systems.

 

Undertake outreach activities to inform and train foreign bank regulators and deposit insurers.

Achieved.

Achieved.

Achieved.

Foster strong relationships with international banking regulators and associations that promote sound banking supervision and regulation, failure resolutions, and deposit insurance practices.

Achieved.

Achieved.

Achieved.

Develop methodology and lead the International Association of Deposit Insurers training on the methodology for assessing compliance with implementation of the Core Principles for Effective Deposit Insurance Systems.

Achieved.

Achieved.

 

Supervision and Consumer Protection Program Results

Strategic Goal: FDIC-supervised institutions are safe and sound.

Annual Performance Goals and Targets

2011

2010

2009

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 are conducted on schedule.

 

Achieved.

Achieved.

Conduct 100 percent of required risk management examinations within the time frames prescribed by statute and FDIC policy.

Achieved.

 

 

2. For all institutions that are assigned a composite Uniform Financial Institutions Rating of 3, 4, or 5, conduct on-site visits within six months after implementation of a corrective program. Ensure during these visits and subsequent examinations that the institution is fulfilling the requirements of the corrective program that has been implemented and that the actions taken are effectively addressing the underlying concerns identified during the examination.

 

Conduct 100 percent of required on-site visits within six months after implementation of a corrective program.

Achieved.

 

 

3. Complete the transfer of personnel and supervisory responsibility for state-chartered thrifts from the Office of Thrift Supervision to the FDIC in accordance with approved plans and statutory requirements.

 

Complete the transfer of supervisory responsibility for state-chartered thrifts by July 21, 2011.

Achieved.

 

 

Identify the OTS employees to be transferred and complete the transfer of those employees to the FDIC no later than 90 days after July 21, 2011.

Achieved.

 

 

4. Take prompt and effective supervisory action to address unresolved problems 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.

 

One hundred percent of required on-site visits are conducted within six months of completion of the prior examination to confirm that the institution is fulfilling the requirements of the corrective program.

 

Achieved.

 

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.

Achieved.

5. Assist in protecting the infrastructure of the U.S. banking system against terrorist financing, money laundering, and other financial crimes.

 

Conduct 100 percent of required Bank Secrecy Act examinations within the time frames prescribed by statute and FDIC policy.

Achieved.

Achieved

Achieved.

6. More closely align regulatory capital with risks and ensure that capital is maintained at prudential levels.

 

Complete by June 30, 2011, the final rule addressing capital floors for banking organizations.

Achieved.

 

 

Complete by September 30, 2011, the Basel III Notice of Proposed Rulemaking (NPR) for the new definition of capital, the July 2009 enhancements to resecuritizations risk weights, and securitization disclosures.

Deferred.

 

 

Complete by September 30, 2011, the Basel NPR for the new leverage ratio.

Deferred.

 

 

Complete by September 30, 2011 the Basel NPR for the new liquidity requirements.

Deferred.

 

 

Complete by December 31, 2011, the final rule on the Market Risk Amendment (includes finalizing alternatives to the use of credit ratings in accordance with DFA requirements).

Deferred.

 

 

Complete by September 30, 2011, the NPR for the Standardized Framework.

Deferred.

 

 

Conduct analyses of early results of the performance of new capital rules in light of recent financial turmoil as information becomes available.

 

 

Achieved.

Workings domestically and internationally, develop improvements to regulatory capital requirements based on the experience of the recent financial market turmoil.

 

 

Achieved.

7. More closely align regulatory capital with risk and ensure that capital is maintained at prudential levels.

 

Complete by December 31, 2010, the rulemaking for implementing the Standardized Approach for an appropriate subset of U.S. banks.

 

Deferred.

 

Complete by December 31, 2010, the rulemaking for amending the floors for banks that calculate their risk-based capital requirements under the Advanced Approaches Capital rule to ensure capital requirements meet safety-and-soundness objectives.

 

Not Achieved.

 

Complete by December 31, 2010, the rulemaking for implementing revisions to the Market Risk Amendment of 1996.

 

Deferred.

 

Complete by December 31, 2010, the rulemaking for implementing revisions to regulatory capital charges for resecuritizations and asset-backed commercial paper liquidity facilities.

 

Deferred.

 

8. Identify and address risks in financial institutions designated as systemically important.

 

Establish an ongoing FDIC monitoring program for all covered financial institutions.

Achieved.

 

 

Complete rulemaking to establish (with the Board of Governors of the Federal Reserve System) criteria for resolution plans to be submitted by systemically important institutions.

Achieved.

 

 

9. Facilitate more effective regulatory compliance so as to reduce regulatory burden on the banking industry, where appropriate, while maintaining the independence and integrity of the FDIC’s risk management and consumer compliance supervisory programs.

 

Issue by March 31, 2011, a revised corporate directive on the issuance of Financial Institution Letters (FILs) that includes a requirement that all FILs contain an informative section as to their applicability to smaller institutions (total assets under $1 billion).

Achieved.

 

 

Complete by June 30, 2011, a review of all recurring questionnaires and information requests to the industry and submit a report to FDIC management with recommendations on improving efficiency and ease of use, including a scheduled plan for implementing these revisions. Carry out approved recommendations in accordance with the plan.

Achieved.

 

 

Supervision and Consumer Protection Program Results

Strategic Goal: Consumers’ rights are protected and FDIC-supervised institutions invest in their communities.

Annual Performance Goals and Targets

2011

2010

2009

1. Conduct on-site CRA and compliance examinations to assess compliance with applicable laws and regulations by FDIC-supervised depository institution.

 

Conduct 100 percent of required examinations within the time frames established by FDIC policy.

Achieved.

 

 

One hundred percent of required examinations are conducted on schedule.

 

Achieved.

Achieved.

2. Take prompt and effective supervisory action to monitor and address problems identified during compliance examinations of FDIC-supervised institutions that received an overall “3”, “4”, or “5” rating for compliance with consumer protection and fair lending laws.

 

One hundred percent of follow-up examinations or visitations are conducted within 12 months from the date of a formal enforcement action to confirm compliance with the prescribed enforcement action.

 

Achieved.

Not Achieved.

For all institutions that are assigned a compliance rating of 3, 4, or 5, conduct follow-up examinations or on-site visits within 12 months to ensure that each institution is fulfilling the requirements of any corrective programs that have been implemented and that the actions taken are effectively addressing the underlying concerns identified during the examination.

Achieved.

 

 

3. Complete the transfer of personnel and supervisory responsibility for compliance examinations of FDIC supervised institutions with more than $10 billion in assets and their affiliates from the FDIC to the new Consumer Financial Protection Bureau (CFPB) in accordance with statutory requirements.

 

Complete by July 21, 2011, the transfer of supervisory responsibility from the FDIC to the CFPB.

Achieved.

 

 

Identify the FDIC employees to be transferred to the CFPB and transfer them in accordance with established time frames.

Achieved.

 

 

4. 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.

 

Proactively identify and respond to harmful or illegal practices associated with evolving consumer products.

 

 

Achieved.

5. Provide effective outreach related to the CRA, fair lending, and community development.

 

Conduct 50 technical assistance (examination support) efforts or banker/community outreach activities related to CRA, fair lending, and community development.

 

 

Achieved.

Evaluate the Money Smart initiative 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 the longitudinal survey project to measure the effectiveness of the Money Smart for Young Adults curriculum.

 

 

Achieved.

Provide technical assistance, support, and consumer outreach activities in all six FDIC regions to at least eight local NeighborWorks® America affiliates or local coalitions that are providing foreclosure mitigation counseling in high need areas.

 

 

Achieved.

6. Continue to expand the FDIC’s national leadership role in development and implementation of programs and strategies to encourage and promote broader economic inclusion within the nation’s banking system.

 

Expand the number of AEI coalitions by two.

 

 

Achieved.

Analyze quarterly data submitted by participating institutions to identify early trends and potential best practices.

 

 

Achieved.

7. Educate consumers about their rights and responsibilities under consumer protection laws and regulations.

 

Expand the 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.

8. Effectively investigate and respond to written consumer complaints and inquiries about FDIC-supervised financial institutions.

 

Responses are provided to 95 percent of written consumer complaints and inquiries within time frames established by policy, with all complaints and inquiries receiving at least an initial acknowledgment within two weeks.

Achieved.

Achieved.

Achieved.

9. Establish, in consultation with the FDIC’s Advisory Committee on Economic Inclusion and other regulatory agencies, national objectives and methods for reducing the number of unbanked and underbanked individuals.

 

Launch the FDIC Model Safe Accounts Pilot, begin data collection on the accounts from banks, and start reporting on results of the pilot.

Achieved.

 

 

Continue to promote the results of the FDIC Small-Dollar Loan Pilot and research opportunities for bringing small-dollar lending programs to scale, including exploring a test of employer-based lending using the federal workforce.

Achieved.

 

 

Engage in efforts to support safe mortgage lending in low- and moderate-income communities.

Achieved.

 

 

Facilitate completion of final recommendation on the initiatives identified in the Advisory Committee’s strategic plan.

 

Achieved.

 

Implement, or establish plans to implement, Advisory Committee recommendations approved by the FDIC for further action, including new research, demonstration and pilot projects, and new and revised supervisory and public policies.

 

Achieved.

 

Receivership Management Program Results

Strategic Goal: Recovery to creditors of receiverships is achieved.

Annual Performance Goals and Targets

2011

2010

2009

1. Market failing institutions to all known qualified and interested potential bidders.

 

Contact all known qualified and interested bidders.

Achieved.

Achieved.

Achieved.

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 is marketed within 90 days of failure.

 

 

Achieved.

For at least 95 percent of insured institution failures, market at least 90 percent of the book value of the institution’s marketable assets within 90 days of the failure date (for cash sales) or 120 days of the failure date (for structured sales).

Achieved.

Achieved.

 

Implement enhanced reporting capabilities from the Automated Procurement System.

 

Achieved.

 

Ensure that all newly designated oversight managers and technical monitors receive training in advance of performing contract administration responsibilities.

 

Achieved.

 

Optimize the effectiveness of oversight managers and technical monitors by restructuring work assignments, providing enhanced technical support, and improving supervision.

 

Achieved.

 

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.

 

Terminate within three years of the date of failure, at least 75 percent of new receiverships that are not subject to loss-share agreements, structured sales, or other legal impediments.

Achieved.

Achieved.

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.

 

For 80 percent of all claim areas, a decision is made to close or pursue professional liability claims within 18 months of the failure date of an insured depository institution.

Achieved.

Achieved.

Achieved.

5. Complete reviews of all loss-share and Limited Liability Corporation (LLC) agreements to ensure full compliance with the terms and conditions of the agreements.

 

Complete on-site field work for reviews of 100 percent of the loss-share and LLC agreements active as of December 31, 2010, to ensure full compliance with the terms and conditions of the agreements.

Achieved.

 

 

Review the final report and implement an action plan to address the report’s finding and recommendations for 75 percent of the loss-share reviews and 50 percent of the LLC reviews, including all reviews of agreements totaling more than $1.0 billion (gross book value).

Achieved.

 

 

 


Last Updated 07/09/2013 communications@fdic.gov