FDIC: 2006 Annual Report


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2006 Annual Report

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Excerpted from the 2004 Annual Report.
Note: Page numbers refer to the 2004 report.

#	Annual Performance Goal	Indicator	Target	Results
Insurance Program Results
Strategic Goal: Insured depositors are protected from loss without recourse to taxpayer funding.
1	Respond promptly to all 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. See pg. 19 .
1			If the failure occurs on any other day of the week, the target is two business days.	Not Applicable. All failures occurred on a Friday.
2	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. See pg. 11.
		Identify and follow up on concerns referred for examination or other action (i.e., contact the insured institution or primary supervisor).	Identify and follow up on 100 percent of referrals.	Achieved. See pg. 12.
		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. See pg. 11.
			Conduct industry outreach activities aimed at the banking community and industry trade groups to discuss current trends and concerns and to inform bankers about available FDIC resources.	Achieved. See pgs. 11.
3	Maintain sufficient and reliable information on insured depository institutions.	Maintain quality and timeliness of bank data.	Implement a modernized Call Reporting process by December 31, 2004.	Not Achieved. See pg. 11.
4	Maintain and improve the deposit insurance system.	Pursuit of changes to the deposit insurance system is in accordance with proposals submitted to the Congress.	Provide information and analysis to Congressional committees in support of deposit insurance reform legislation.	Achieved. See pgs. 8-9.
			Develop and obtain the necessary support for a proposed assessment credit and rebate system and a new deposit insurance pricing system.	Achieved. See pgs. 8-9.
			When deposit insurance reform is enacted, implement legislation in accordance with statutorily prescribed time frames.	Not Applicable. Legislation not enacted in 2004
		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. See pgs. 8-9.
			Implement enhancements to the reserving process and methodology in accordance with recommendations from a comprehensive 2003 review.	Achieved. See pgs. 8-9.
		Maintain fund adequacy.	Set assessment rates to maintain the insurance funds at the designated reserve ratio, or return them to the designated reserve ratio if they fall below it, as required by statute.	Achieved. See pgs. 8-9.
			If deposit insurance reform legislation becomes law in 2004, promulgate rules and regulations establishing criteria for replenishing the deposit insurance fund when it falls below the low end of the range.	Not Applicable. Legislation enacted in 2004.
			Develop a working prototype of a new, integrated fund model for financial risk management.	Achieved. See pgs. 8-9 .
		Conduct a conference on the "Future of Banking."	Host conference, present findings from the study and obtain feedback from scholars and industry representatives and other interested parties.	Not Achieved. See pg. 28.
		Maintain quality and visibility of the Corporation's banking research activities.	Implement an FDIC Center for Financial Research with enhanced ties to the academic community.	Achieved. See pg. 10.
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 developed for bankers and consumers.	Develop a CD-ROM and Internet-based resource for bankers on the deposit insurance rules.	Achieved. See pg. 18.

#	Annual Performance Goal	Indicator	Target	Results
Supervision and Consumer Protection Program Results
Strategic Goal: FDIC-supervised institutions are safe and sound.
1	Conduct on-site risk management examinations to assess an FDIC-supervised insured depository institution's overall financial condition, management practices and policies, and compliance with applicable laws and regulations.	Percentage of required examinations in accordance with statutory requirements and FDIC policy.	One hundred percent of required examinations are conducted on time.	Achieved. See pg. 12 .
2	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 institutions' compliance with formal and informal enforcement actions.	Follow -up examination of problem banks.	Follow -up examination is conducted within 12 months of completion of the prior examination.	Achieved. See pg. 12 .
Strategic Goal: Consumers' rights are protected and FDIC-supervised institutions invest in their communities.
3	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 curriculum provided.	Add an additional 200 Money Smart Alliance Members.	Achieved. See pg. 15 .
			Provide an additional 20,000 copies of Money Smart curriculum.	Achieved. See pg. 15 .
			Reach an additional 200,000 individuals.	Achieved. See pg. 15 .
		Outreach activities and technical assistance.	Conduct or participate in 125 technical assistance efforts (examination support) or banker/ community outreach activities related to CRA, fair lending, or community development.	Achieved. See pg. 15 .
4	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. See pg. 17 .
5	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. See pg. 12 .
6	Take prompt supervisory actions and monitor institutions rated "4" or "5" for compliance to address problems identified during compliance examinations.	Timely follow-up examinations and related activity.	Follow-up examination or related activity is 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. 12 .

#	Annual Performance Goal	Indicator	Target	Results
Receivership Management Program Results
Strategic Goal: Recovery to creditors of receiverships is achieved.
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. See pg. 19 .
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.	Eighty-five percent of book value of a failed institution's marketable assets are marketed within 90 days of failure.	Achieved. See pg.19 .
3	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.	Achieved. See pg. 20 .
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 the claim within 18 months after the failure date.	Achieved. See pg. 19 .

Last Updated 03/21/2007

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