III. Performance Results Summary - Program Evaluation
2005, the FDIC completed evaluations of programs designed to achieve the
strategic objectives set
forth in the Supervision Program area of the FDIC's
2005-2010 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.
the FDIC ensure that FDIC-supervised institutions appropriately
to FDIC-supervised institutions that are not appropriately managing
The FDIC performs
safety and soundness, trust, Bank Secrecy Act, and information technology
examinations of FDIC-supervised institutions. The examinations are
conducted to assess an institution’s overall financial condition,
management practices and policies, and compliance with applicable
laws and regulations. Through the examination process, the FDIC
also assesses the adequacy of management and internal control systems
to identify, measure and control risks. If the examination process
reveals weaknesses in an FDIC-supervised institution’s operations
or conditions, appropriate actions are taken. Informal or formal
enforcement actions may be issued to the institutions that have
significant weaknesses or that are operating in a deteriorated financial
condition. The actions remain in effect until corrective actions
are taken and the identified weaknesses are corrected. If the problems
remain unresolved, the FDIC may take further steps to encourage
or compel institutions to comply.
have access to easily understood information about their rights
and the disclosures due them under consumer protection and fair
FDIC provide information to consumers about their rights and
the disclosures due consumers under current consumer protection
and fair lending laws?
Is the information
easily accessible and easily understood?
The FDIC undertakes
an extensive and expanding number of activities to provide information
on consumers’ rights and the disclosures due them under consumer
protection and fair lending laws. A wide array of materials detail
consumers’ rights; provide information and answers to questions
concerning deposit insurance, banks and consumer rights; and offer
practical guidance on how to become a better informed user of financial
services. These are readily accessible and widely distributed on
the FDIC’s Web site and at outreach seminars and workshops. Many
materials are also available in hard copy and some in multiple languages.
The FDIC also has been actively involved in consumer education and
disclosure with the on-going support of programs such as Money Smart
institutions comply with consumer protection, Community Reinvestment
Act (CRA), and fair lending laws.
the FDIC ensure that FDIC-supervised institutions comply with
consumer protection, CRA, and fair lending laws?
The FDIC conducts
compliance and CRA examinations to evaluate FDIC-insured institutions’ practices
regarding these areas. In addition to the examination process, the
FDIC investigates consumer complaints about banking practices. Noncompliance
with consumer protection and fair lending laws can result in civil
liability and negative publicity as well as informal or formal enforcement
actions against the institution to correct identified violations.
The FDIC also utilizes the institutions’ record of compliance with
consumer protection, CRA, and fair lending laws when evaluating
applications for new or expanded activities and certain other corporate