Multi-Year
Performance Trend |
Depositor
Payouts in Instance of Failure |
Annual
Goal |
2002
Results |
2003
Results |
2004
Results |
2005
Results |
The FDIC responds
promptly to financial institution closings and emerging issues. |
Timely payments
made to all depositors of the 11 insured depository institutions
that failed in 2002. |
Timely payments
made to all depositors of the three insured depository institutions
that failed in 2003. |
Timely payments
made to all depositors of the four insured depository institutions
that failed in 2004. |
There were no
failures in 2005. |
Risk
Classifications |
Annual
Goal |
2002
Results |
2003
Results |
2004
Results |
2005
Results |
Maintain and
improve the deposit insurance system. |
BIF and SAIF
reserve ratios maintained at or above the statutory ratio of 1.25
percent. Chairman testified before the Senate Committee in support
of deposit insurance reform. |
BIF and SAIF
reserve ratios maintained at or above the statutory ratio of 1.25
percent. Chairman testified before the Senate Committee in support
of deposit insurance reform. |
The FDIC completed
implementation of enhancements to the reserving process and methodology
in March 2004. During 2004, reserve ratios were maintained at or
above the designated reserve ratio as required by statute. |
Through September
30, 2005, BIF and SAIF reserve ratios were maintained at or above
the statutory ratio of 1.25 percent. |
|
Legislation
on deposit insurance reform was introduced in the House and the
Senate. |
Legislation
on deposit insurance reform was passed in the House and was pending
in the Senate when Congress recessed for the year. |
Deposit insurance
reform remained under consideration in the Senate, but no action
was taken prior to the end of the 108th Congress. |
Congress included
deposit insurance reform legislation in the conference report to
reconciliation legislation, S. 1932. The measure was adopted by
the Senate in December and was passed by the House February 1,
2006. The President signed the bill enacting deposit insurance
reform legislation on February 8, 2006. |
Risk
Management, Safety and Soundness |
Annual
Goal |
2002
Results |
2003
Results |
2004
Results |
2005
Results |
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. |
Conducted 2,534
or 98 percent of required safety and soundness examinations. |
Conducted 2,421
required safety and soundness examinations in accordance with FDIC
policy. |
Conducted 2,515
required safety and soundness examinations in accordance with FDIC
policy. |
Conducted 2,399
required safety and soundness examinations in accordance with FDIC
policy. |
Safety
and Soundness Enforcements Actions |
Annual
Goal |
2002
Results |
2003
Results |
2004
Results |
2005
Results |
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. (Revised 2005) |
Eighty-four
institutions designated as problem (composite 4 or 5 rated).
Forty-eight were removed from problem status and 63 were added. |
Seventy-three
institutions designated as problem (composite 4 or 5 rated).
Fifty-eight with total assets of $6.98 billion were removed from
problem status and 47 with total assets of $4.99 billion were added.
Additionally, the FDIC issued the following formal and informal
enforcement actions: 40 (5 contained BSA provisions) Cease and
Desist Orders and 157 (6 contained BSA provisions) Memoranda of
Understanding. |
Forty-four institutions
designated as problem (composite 4 or 5 rated). Fifty-seven
with total assets of $6.3 billion were removed from problem status
and 28 institutions with total assets of $4.8 billion were added.
Additionally, FDIC issued the following formal and informal actions:
38 (11 contained BSA provisions) Cease and Desist Orders and 145
(31 contained BSA provisions) Memoranda of Understanding. |
Twenty-nine
institutions designated as problem (composite 4 or 5 rated).
Thirty-six with total assets of $2.8 billion were removed from
problem status and 19 institutions with total assets of $802 million
were added. Additionally, FDIC issued the following formal and
informal actions: 15 (8 contained BSA provisions) Cease and Desist
Orders and 152 (69 contained BSA provisions) Memoranda of Understanding. |
Compliance
Examinations |
Annual
Goal |
2002
Results |
2003
Results |
2004
Results |
2005
Results |
Conduct CRA
and compliance examinations in accordance with FDIC examination
frequency policy. (Revised -2005) |
Conducted 1,840
comprehensive compliance-only and CRA examinations in accordance
with FDIC policy. There were no delinquencies in 2002. |
Conducted 1,919
comprehensive compliance-only and CRA examinations in accordance
with FDIC policy. There were no delinquencies in 2003. |
Conducted 2,136
comprehensive compliance-only and CRA examinations in accordance
with FDIC policy. There were no delinquencies in 2004. |
Conducted 2,020
comprehensive compliance-only and CRA examinations in accordance
with FDIC policy. A small number of exams were postponed to early
2006 to give financial institutions time to recover from the effects
of the Gulf Coast hurricanes. |
CRA
Outreach |
Annual
Goal |
2002
Results |
2003
Results |
2004
Results |
2005
Results |
Provide effective
outreach and technical assistance on topics related to CRA, fair
lending and community development. |
Money Smart
classes attended by approximately 2,800 participants. |
The FDIC supplied
more than 111,000 copies of Money Smart curricula to organizations.
FDIC sponsored 65 public outreach initiatives, 111 community development
activities, and 67 technical assistance activities. |
Targets for
the following were met: added 200 new Money Smart Alliance members;
distributed 20,000 copies of Money Smart curriculum; additional
294,000 members reached; and conducted 125 outreach and technical
assistance activities. |
Targets for
the following were met: added 306 new Money Smart Alliance members;
distributed 95,283 copies of Money Smart curriculum; additional
195,000 members reached; and conducted 163 outreach and technical
assistance activities. |
Compliance
Enforcement Actions |
Annual
Goal |
2002
Results |
2003
Results |
2004
Results |
2005
Results |
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. (Revised - 2005) |
Eight of nine
institutions entered into a Memorandum of Understanding (MOU) with
the FDIC; the ninth was in the process of reviewing the recommended
MOU at year-end. |
The only 4 rated
institution entered into a MOU with the FDIC. |
Of the five
institutions rated 4 as of December 31, 2004, two entered into
Memoranda of Understanding with the FDIC; and two were subject
to outstanding Cease and Desist Orders. A Cease and Desist Order
for the fifth institution was issued during the second quarter
of 2005. |
Of the three
institutions rated 4 as of December 31, 2005, one entered into
a Memorandum of Understanding with the FDIC; and two are subject
to outstanding Cease and Desist Orders. There are no institutions
currently rated a 5. |
Risk
Management Safety and Soundness |
Annual Goal |
2002 Results |
2003 Results |
2004 Results |
2005 Results |
Increase industry
and regulatory awareness of emerging/high-risk areas. (Added -
2005) |
|
|
|
The Anti-Money
Laundering (AML) goal has met targets and the advanced training
for all BSA/AML subject matter experts has been accomplished. |
More closely
align regulatory capital with risk in large or multinational banks.
(Added 2005) |
|
|
|
Final results
of the 4th Quantitative Impact Study (QIS- 4) show a 15.5 percent
decline in minimum regulatory capital from current levels, with
a wide dispersion in results that was primarily due to banks' assessment
of risk, rather than actual risk. |
Basel
Capital Accord |
Annual Goal |
2002 Results |
2003 Results |
2004 Results |
2005 Results |
Ensure that
FDIC-supervised institutions that plan to operate under the new
Basel Capital Accord are making satisfactory progress toward meeting
required qualification standards. (Added -2005) |
|
|
|
Initial Basel
II outreach efforts or baseline reviews continue at FDIC-supervised
institutions that have indicated their possible intent to opt-in
for treatment under the new rules. FDIC is integrally involved
in domestic and international policy and implementation processes
to help ensure a smooth transition to Basel II. |
Consumer
Complaints and Inquiries |
Annual Goal |
2002 Results |
2003 Results |
2004 Results |
2005
Results |
Meet the statutory
mandate to investigate and respond to consumer complaints about
FDIC-supervised financial institutions. |
FDIC received
8,368 consumer complaints and closed 95 percent of them. Of the
complaints closed, 94 percent were closed within policy time frames. |
FDIC received
8,010 consumer complaints and closed 99 percent of them. Of the
complaints closed, 94 percent were closed within policy time frames. |
FDIC received
8,742 consumer complaints, closing 95 percent of them. Of the closed
complaints, 95 percent were closed within policy time frames. |
FDIC received
8,851 consumer complaints, closing 96 percent of them. Of the closed
complaints, 97 percent were closed within policy time frames. |
Asset
Management |
Annual Goal |
2002 Results |
2003 Results |
2004 Results |
2005 Results |
Value, manage
and market assets of the failed institutions and their subsidiaries
in a timely manner to maximize net return. |
For all 11 institutions
that failed, at least 87 percent of all marketable assets were
marketed within the 90-day time frame, thus exceeding the target
of 85 percent. |
For all three
institutions that failed, at least 98 percent of all marketable
assets were marketed within the 90-day time frame, thus exceeding
the target of 85 percent. |
Five financial
institutions reached their 90-day threshold during 2004. One hundred
percent of all marketable assets were marketed within the 90-day
time frame. |
No financial
institutions reached their 90-day threshold during 2005. |
Least-Cost
Resolution |
Annual Goal |
2002 Results |
2003 Results |
2004 Results |
2005 Results |
Market failing
institutions to all known qualified and interested potential bidders. |
There were 11
failures in 2002. One hundred percent of the qualified potential
bidders were contacted. |
There were three
failures in 2003. One hundred percent of the qualified bidders
were contacted. |
There were four
failures in 2004. One hundred percent of the qualified bidders
were contacted for the sale of three failed institutions. One failed
institution was not offered for sale. |
There were no
failures in 2005. |
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. (Revised -2005) |
Two of six institutions
that reached the 18-month milestone during 2002 had 100 percent
of professional liability investigations completed. The other four
institutions had at least 80 percent of professional liability
investigations completed, meeting the goal of 80 percent. |
Four of ten
institutions that reached the 18-month milestone during 2003 had
100 percent of professional liability investigations completed.
The other six institutions had at least 80 percent of professional
liability investigations completed, meeting the goal of 80 percent. |
All five institutions
that reached the 18-month milestone during 2004 had 100 percent
of professional liability investigations completed, meeting the
goal of 80 percent. |
All four institutions
that reached the 18-month milestone during 2005 had 100 percent
of professional liability investigations completed, meeting the
goal of 80 percent. |
Manage the receivership
estate and its subsidiaries toward an orderly termination. |
For the eight
failures from 1999 that matured in 2002, the FDIC terminated six
receiverships, meeting the target to terminate 75 percent within
three years of failure. |
For the seven
failures that occurred during 2000 that matured in 2003, the FDIC
terminated four receiverships, below the target to terminate 75
percent within three years of failure. |
For the four
failures that occurred during 2001 that matured in 2004, the FDIC
terminated three receiverships, meeting the target to terminate
75 percent within three years of failure. |
For the eleven
failures that occurred during 2002 that matured in 2005, the FDIC
terminated four receiverships. This did not meet the target to
terminate 75 percent within three years of failure date due to
various impediments to terminations. |