2014 Annual Report
II. Performance Results Summary
PERFORMANCE RESULTS BY PROGRAM AND STRATEGIC GOAL
2014 Insurance Program Results
Strategic Goal: Insured depositors are protected from loss without recourse to taxpayer funding.
| # | Annual Performance Goal | Indicator | Target | Results |
|---|---|---|---|---|
| 1 | Respond promptly to all insured financial institution closings and related emerging issues. | Number of business days after an institution failure depositors have access to insured funds. | Depositors have access to insured funds within one business day if the failure occurs on a Friday. | Achieved. See pg. 39, or here. |
| Depositors have access to insured funds within two business days if the failure occurs on any other day of the week. | Achieved. See pg. 39, or here. |
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| Insured depositor losses resulting from a financial institution failure. | Depositors do not incur any losses on insured deposits. | Achieved. See pg. 39, or here. |
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| No appropriated funds are required to pay insured depositors. | Achieved. See pg. 39, or here. |
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| 2 | 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. | Scope and timeliness of information dissemination on identified or potential issues and risks. | Disseminate results of research and analyses in a timely manner through regular publications, ad hoc reports, and other means. | Achieved. See pg. 49, or here. |
| Undertake industry outreach activities to inform bankers and other stakeholders about current trends, concerns, and other available FDIC resources. | Achieved. See pg. 34, or here. |
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| 3 | Adjust assessment rates, as necessary, to achieve a DIF reserve ratio of at least 1.35 percent of estimated insured deposits by September 30, 2020. | Updated fund balance projections and recommended changes to assessment rates. | Provide updated fund balance projections to the FDIC Board of Directors by June 30, 2014, and December 31, 2014. | Achieved. See pg. 49, or here. |
| Recommend changes to deposit insurance assessment rates to the FDIC Board of Directors as necessary. | Achieved. See pg. 49, or here. |
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| Demonstrated progress in achieving the goals of the Restoration Plan. | Provide progress reports to the FDIC Board of Directors by June 30, 2014, and December 31, 2014. | Achieved. See pg. 49, or here. |
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| 4 | Expand and strengthen the FDIC's participation and leadership role in supporting robust and effective deposit insurance programs, resolution strategies, and banking systems worldwide. | Initiatives to advance the FDIC's global leadership and participation. | Maintain open dialogue with counterparts in strategically important countries as well as international financial institutions and partner U.S. agencies. | Achieved. See pgs. 41, or here. |
| Maintain a leadership position in the International Association of Deposit Insurers (IADI) by conducting workshops and performing assessments of deposit insurance systems based on the methodology for assessment of compliance with the IADI Core Principles for Effective Deposit Insurance Systems (Core Principles), developing and conducting training on priority topics identified by IADI members, and actively participating in IADI's Executive Council and Standing Committees. | Achieved. See pgs. 41-42, or here. |
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| Engage with authorities responsible for resolutions and resolutions planning in priority foreign jurisdictions. | Achieved. See pgs. 41, or here. |
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| Contribute to the resolution-related agenda of the Financial Stability Board (FSB) through active participation in the FSB's Resolution Steering Group and its working groups. | Achieved. See pgs. 41, or here. |
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| Actively participate in bilateral interagency regulatory dialogues. | Achieved. See pgs. 43, or here. |
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| Provision of technical assistance to foreign counterparts. | Support visits, study tours, and longer-term technical assistance and training programs for foreign jurisdictions to strengthen their deposit insurance organizations, central banks, bank supervisors, and resolution authorities. | Achieved. See pg. 42, or here. |
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| 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. | Timeliness of responses to deposit insurance coverage inquiries. | Respond within two weeks to 95 percent of written inquiries from consumers and bankers about FDIC deposit insurance coverage. | Achieved. See pg. 38, or here. |
| Initiatives to increase public awareness of deposit insurance coverage changes. | Conduct at least 12 telephone or in-person seminars for bankers on deposit insurance coverage. | Achieved. See pg. 38, or here. |
2014 SUPERVISION AND CONSUMER PROTECTION PROGRAM RESULTS
Strategic Goal: FDIC-insured institutions are safe and sound.
| # | Annual Performance Goal | Indicator | Target | Results |
|---|---|---|---|---|
| 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. When problems are identified, promptly implement appropriate corrective programs, and follow up to ensure that identified problems are corrected. | Percentage of required examinations conducted in accordance with statutory requirements and FDIC policy. | Conduct all required risk management examinations within the time frames prescribed by statute and FDIC policy. | Achieved. See pg. 24, or here. |
| Implement appropriate corrective program where violations are identified. | Implement formal or informal enforcement actions within 60 days for at least 90 percent of all institutions that are newly downgraded to a composite Uniform Financial Institutions Rating of 3, 4, or 5. | Achieved. See pg. 25, or here. |
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| 2 | Assist in protecting the infrastructure of the U.S. banking system against terrorist financing, money laundering, and other financial crimes. | Percentage of required examinations conducted in accordance with statutory requirements and FDIC policy. | Conduct all Bank Secrecy Act examinations within the time frames prescribed by statute and FDIC policy. | Achieved. See pg. 24, or here. |
| 3 | More closely align regulatory capital standards with risk and ensure that capital is maintained at prudential levels. | Issuance of final Basel III reporting instructions. | Finalize Basel III reporting instructions in time to ensure that institutions that are using the advanced approaches can implement Basel III in the first quarter of 2014 and that all IDIs can implement the standardized approach in the first quarter of 2015. | Achieved. See pgs. 14-15, or here. |
| Issuance of a final Basel Liquidity Coverage Ratio rule. | Publish a final Basel Liquidity Coverage Rule, in collaboration with other regulators by December 31, 2014. | Achieved. See pgs. 18, or here. |
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| Issuance of a final rule implementing the Basel III capital accord. | Publish a final rule implementing the Basel III capital accord in collaboration with other regulators, by December 31, 2014. | Achieved. See pgs. 13-14, or here. |
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| Issuance of an enhanced U.S. supplementary leverage ratio standard. | Finalize, in collaboration with other regulators, an enhanced U.S. supplementary leverage ratio standard by December 31, 2014. | Achieved. See pgs. 14, or here. |
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| 4 | Identify and address risks in financial institutions designated as systemically important. | Risk monitoring of systemically important banks, bank holding companies, and designated non-banking firms. | Conduct ongoing risk analysis and monitoring of SIFIs to understand their structure, business activities and risk profiles, and their resolution and recovery capabilities. | Achieved. See pgs. 19-20, or here. |
| Completion of statutory and regulatory requirements under Title I of the Dodd-Frank Act. | Complete, in collaboration with the Federal Reserve Board and in accordance with statutory and regulatory time frames, all required actions associated with the review of resolution plans submitted by financial companies subject to the requirements of Section 165 (d) of the Dodd-Frank Act. | Achieved. See pg. 20-21, or here. |
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| Meetings of the Systemic Resolution Advisory Committee. | Hold at least one meeting of the Systemic Resolution Advisory Committee to obtain feedback on resolving SIFIs. | Achieved. See pg. 24, or here. |
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| 5 | Implement strategies to promote enhanced cybersecurity within the banking industry. | Implementation of an enhanced information technology (IT) supervision program. | In coordination with the FFIEC, implement recommendations to enhance the FDIC's supervision of the IT risks at insured depository institutions and their technology service providers. | Achieved. See pg. 27-28, or here. |
2014 supervision and consumer protection program results (continued)
Strategic Goal: Consumers' rights are protected and FDIC-supervised institutions invest in their communities.
| # | Annual Performance Goal | Indicator | Target | Results |
|---|---|---|---|---|
| 1 | Conduct on-site CRA and compliance examinations to assess compliance with applicable laws and regulations by FDIC-supervised depository institutions. When violations are identified, promptly implement appropriate corrective programs and follow up to ensure that identified problems are corrected. | Percentage of examinations conducted in accordance with the time frames prescribed by FDIC policy. | Conduct 100 percent of required examinations within the time frames established by FDIC policy. | Substantially Achieved. See pg. 26, or here. |
| Implementation of corrective programs. | Conduct visits and/or follow-up examinations in accordance with established FDIC policies to ensure that the requirements of any required corrective program have been implemented and are effectively addressing identified violations. | Achieved. See pg. 26, or here. |
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| 2 | Effectively investigate and respond to written consumer complaints and inquiries about FDIC-supervised financial institutions. | Timely responses to written consumer complaints and inquiries. | Respond 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 acknowledgement within two weeks. | Achieved. See pg. 37, or here. |
| 3 | Promote economic inclusion and access to responsible financial services through supervisory, research, policy, and consumer/community affairs initiatives. | Completion of planned initiatives. | Publish the results of the 2013 FDIC National Survey of Unbanked and Underbanked Households (conducted jointly with the U.S. Census Bureau). | Achieved. See pg. 33, or here. |
| Implement the strategy outlined in the work plan approved by the Advisory Committee on Economic Inclusion to support the expanded availability of SAFE accounts and the responsible use of technology, to expand banking services to the underbanked. | Achieved. See pg. 33, or here. |
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| Facilitate opportunities for banks and community stakeholders to address issues concerning access to financial services, community development, and financial education. | Achieved. See pgs. 35-36, or here. |
2014 RECEIVERSHIP MANAGEMENT PROGRAM RESULTS
Strategic Goal: Resolutions are orderly and receiverships are managed effectively.
| # | Annual Performance Goal | Indicator | Target | Results |
|---|---|---|---|---|
| 1 | Market failing institutions to all known qualified and interested potential bidders. | Scope of qualified and interested bidders solicited. | Contact all known qualified and interested bidders. | Achieved. See pg. 39, or here. |
| 2 | Value, manage, and market assets of failed institutions and their subsidiaries in a timely manner to maximize net return. | Percentage of the assets marketed for each failed institution. | 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. See pg. 39, or here. |
| 3 | Manage the receivership estate and its subsidiaries toward an orderly termination. | Timely termination of new receiverships. | Terminate at least 75 percent of new receiverships that are not subject to loss-share agreements, structured sales, or other legal impediments, within three years of the date of failure. | Achieved. See pg. 50, or here. |
| 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. | 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, make a decision to close or pursue professional liability claims within 18 months of the failure of an insured depository institution. | Achieved. See pg. 50, or here. |
Last Updated 04/15/2015