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Federal Deposit
Insurance Corporation

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

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2003 Annual Report

II. 2003 Performance Results Summary - Program Evaluation

During 2003, the FDIC completed evaluations of programs designed to achieve the strategic objectives set forth in the Insurance Program area of the FDIC’s 2001-2006 Strategic Plan.

The program evaluation of each strategic objective included a list of issues to be evaluated, background context of the evaluation, analysis of programs and actions to achieve the objective, evaluation methodology, and findings. The following section highlights the issues evaluated and summarizes the results of this evaluation.

Customers of failed insured depository institutions have timely access to insured funds and financial services.
Issues evaluated Do customers have timely access to insured funds?

Do customers of failed insured depository institutions have timely access to financial services?

The FDIC has appropriate procedures in place to ensure that customers have timely access to insured funds and financial services. If an institution failure occurs on a Friday, FDIC’s target for access to insured funds by customers is one business day. If a failure occurs on any other day of the week, the target is two business days. When an institution fails, the FDIC fulfills its role as insurer by either facilitating the transfer of the institution’s insured deposits to an assuming institution or by paying insured depositors directly. If an institution failure occurs, the FDIC ensures its customers timely access to financial services, such as automated teller machines, safe deposit boxes and wire services. From January 2003 to December 2003, there were three bank failures. In all cases, an acquiring institution assumed insured deposits and re-opened for business the Monday morning immediately following the Friday failure.

The FDIC has a wide array of materials available to provide timely financial information to customers of failed institutions. These materials are available through the FDIC Web site ( with an Electronic Deposit Insurance Estimator (EDIE) and the FDIC’s toll free number (877-ASK-FDIC). The FDIC’s diligence in promoting financial education is also evident in its outreach seminars, workshops, and its award-winning Money Smart program. All of these initiatives provide methods for consumers to have timely access to financial education.

The FDIC promptly identifies and responds to potential risks to the insurance funds.
Issues evaluated How does the FDIC identify and respond to potential risks to the insurance funds?

The FDIC monitors the condition of the financial services industry and projects insured financial institution failures as well as associated resolution costs. Risks posed by large insured institutions are assessed through two supervisory programs: the Dedicated Examiner program, which covers the largest eight depository institutions, and the Large Insured Depository Institution (LIDI) program, which covers remaining institutions with over $10 billion in assets. The results of these risk assessments are communicated to FDIC regional and divisional management. The Risk Analysis Center receives the summary data and analysis results of the LIDI process, which is then provided to the Financial Risk and National Risk Committees for their purposes.

Also, the FDIC identifies and follows up on concerns referred for examination or other action through an Off-site Review Program.

The FDIC disseminates 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 available on the FDIC’s Web site.

The deposit insurance funds and system remain viable.
Issues evaluated What actions has the FDIC taken to improve the deposit insurance system?

The FDIC continues to pursue enactment of deposit insurance reform legislation. Under the reform proposals, the BIF and SAIF will be merged, and the FDIC’s ability to manage the combined fund and price premiums properly to reflect risk will improve.

During 2003, the FDIC developed a study on the future of banking. The study focused on underlying trends in the economy and the banking industry, and their implications for different sectors of the industry and for bank regulators in the future.

The FDIC established a Center for Financial Research (CFR) to encourage and support innovative research on topics that are important to the FDIC’s role as deposit insurer and bank supervisor. The CFR will explore key developments affecting the banking industry, risk measurement and management methods, regulatory policy and related topics of interest to the FDIC and the larger financial community.

Copies of the complete Insurance Program Evaluation Report may be obtained from:

The FDIC Public Information Center
801 17th Street, NW
Room 100
Washington, DC 20434

Copies may also be requested by:
telephone: 202-416-6940,
fax: 202-416-2076, or


Last Updated 02/27/2004

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