2008 Insurance Program Results
Strategic Goal: Insured depositors are protected from loss without recourse to taxpayer funding.
Annual Performance Goal
Respond promptly to all financial institution closings and emerging issues.
Number of business days
after an institution failure that depositors have access to insured funds either through transfer of deposits to the successor insured depository institution or depositor payout.
Depositors have access to insured funds within one business day if the failure occurs on a Friday.
Identify and analyze existing and emerging areas of risk, including non-traditional and subprime mortgage lending, declines in housing market values, mortgage-related derivatives/collateralized debt obligations (CDOs), hedge fund ownership of insured institutions, commercial real estate lending, international risk, and other financial innovations.
Ensure the effectiveness of the reserving methodology by applying sophisticated analytical techniques to review variances between projected losses and actual losses, and by adjusting the methodology accordingly.
Expand and strengthen the FDIC’s participaton and leadership role in providing technical guidance, training, consulting services and information to international governmental banking and deposit insurance
Scope of information sharing and assistance available to international governmental bank regulatory and deposit insurance entities.
Undertake outreach activities to inform and train foreign bank regulators and deposit insurers.
2008 Supervision and Consumer Protection Program Results
Strategic Goal: FDIC-supervised institutions are safe and sound.
Annual Performance Goal
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.
Percentage of required examinations conducted in accordance with statutory requirements and FDIC policy.
One hundred percent of required risk management examinations are conducted on schedule.
Take prompt and effective supervisory action to address problems 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.
Percentage of follow-up examinations of problem institutions conducted within required time frames.
One hundred percent of follow-up examinations are conducted within 12 months of completion of the prior examination.
Ensure that FDIC-supervised institutions that plan to operate under the new Basel II Capital Accord are well positioned to respond to new capital requirements.
Percentage of on-site examinations or off-site analyses performed.
Performed on-site examinations or off-site analyses of all FDIC-supervised banks that have indicated a possible intention to operate under Basel II to ensure that they
are effectively working toward meeting required qualification standards.
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.
Percentage of follow-up examinations or related activities conducted within required time frames.
One hundred percent
of follow-up examinations
or related activities are conducted within 12 months from the date of a formal enforcement action to confirm that the institution is in compliance with the enforcement action.
Determine the need for changes in current FDIC
practices for following up
on significant violations of consumer compliance laws and regulations identified during examinations of banks for compliance with consumer protection and fair lending laws.
Implementation review of new practices instituted in 2007.
Complete a review of the effectiveness of the 2007 instructions issued on the handling of repeat instances of significant violations identified during compliance examinations.
Scrutinize evolving consumer products, analyze their current or potential impact on consumers and identify potentially harmful or illegal practices. Promptly institute a supervisory response program across FDIC-supervised institutions when such practices are identified.
Establishment of supervisory response programs to address potential risks posed by new consumer products.
Revise the FDIC’s system for identifying, reviewing and addressing potentially harmful or illegal practices associated with evolving consumer products.
Support for expanded foreclosure prevention efforts for consumers at risk of foreclosure (in partnership with NeighborWorks® America and other organizations).
Provide technical assistance, support and consumer outreach activities in all six FDIC regions to at least eight local NeighborWorks® America affiliates or local coalitions that are providing foreclosure mitigation counseling in high need areas.
Continue to expand the FDIC’s national leadership role in development and implementation of programs and strategies to encourage and promote broader economic inclusion within the nation’s banking system.
Results of pilot small-dollar lending program conducted by participating financial institutions.
Analyze quarterly data submitted by participating institutions to identify early trends and potential best practices.
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, a decision is made to close or pursue claims within 18 months of the failure date.