The Board of Directors today approved minor adjustments
to the Corporation's strategic plan that recognize the progress the
agency has made since the plan was first adopted two years ago.
The FDIC adopted the five-year plan -- the first in the
agency's history -- in April 1995. It is the basis for the corporate
operating plan, which implements the strategic plan through
projects designed to accomplish the objectives of the plan, and the
business plan that guides the day-to-day operations of all the
FDIC's divisions and offices.
"When we reevaluated the plan earlier this year, all of us
were pleased to see how well it has stood up over time," said
Chairman Ricki Helfer. "The changes we made reflect the
accomplishments of the past two years."
Chairman Helfer said the corporate planning process had
imposed a greater degree of discipline and accountability on the
agency's management practices.
"We don't approve any expenditures that haven't been
evaluated and approved as part of the planning process," she said.
The strategic plan shifted the Corporation's focus from
closing failed financial institutions to helping banks remain healthy
and serve their communities.
As part of that change in focus, a Division of Insurance was
created to help identify emerging areas of risk before they result in
significant problems for the banking industry.
The strategic plan also guided efforts to adjust staffing
levels to the diminished workload that resulted from the banking
industry's return to health. As a result, staffing was reduced 36
percent from the levels of 1994 and programs were developed to
ensure that the downsizing would be implemented in a fair,
equitable and humane manner.
Other accomplishments stemming from the strategic plan include:
A comprehensive review of why banks and thrifts failed in
the late 1980s and early 1990s;
Creation of a board-level audit committee;
Establishment of an Office of Internal Control
Management;
Implementation of a single automated general ledger that
combined 100 separate accounting systems into one
financial information management system;
Application of technology to reduce the time examiners
spend on-site in banks, provide more timely data to
examiners and to give examiners more analytical tools for
evaluating risks in an institution;
Wider dissemination of information to the public through
the Internet, conferences and new publications;
Successful integration of the remaining functions and staff
of the RTC into the FDIC;
Reduction in annual expenses by 40 percent, to $1.127
billion in 1996, not counting the $579 million in RTC-work
related expenses which were covered by funds appropriated
by Congress.
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 11,452 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 or through Gopher at gopher.fdic.gov.
They may also be obtained through the FDIC's Public Information Center,
801 17th St. NW, Room 100, Washington, DC, ((703) 562-2200).
