III. Performance Results Summary
Summary of 2010 Performance Results by Program
The FDIC successfully achieved 30 of the 34
annual performance targets established in its 2010
Annual Performance Plan. Three targets were
deferred due to specific legislation in the Dodd-Frank Act. One target will be met in 2011. There
were no instances in which 2010 performance
had a material adverse effect on the successful
achievement of the FDIC’s mission or its strategic
goals and objectives regarding its major program
Additional key accomplishments are noted below.
- Presented updated deposit insurance fund
projections to the FDIC Board twice, in
June and October 2010. No changes were
recommended for assessment rates in June.
In October, based on updated projections
and changes to the Restoration Plan target
required by the Dodd-Frank Act, staff
recommended that the Board forgo the three
basis point increase that was scheduled to
take effect on January 1, 2011.
- In October, based on updated projections,
staff estimated that the reserve ratio will
become positive by year-end 2011 and will
reach 1.15 percent by the fourth quarter
of 2018. The FDIC intends to pursue
rulemaking next year to implement the
Dodd-Frank Act requirement that the FDIC
offset the effect of requiring the reserve ratio
reach 1.35 percent by September 30, 2020
rather than 1.15 percent by year-end 2016
on smaller banks.
- Completed reviews of the recent accuracy of the contingent loss reserves.
- Researched and analyzed emerging risks
and trends in the banking sector, financial
markets, and the overall economy to identify
issues affecting the banking industry and the
deposit insurance fund.
- Supported supervision activities related to
fair lending, enforcement actions, and the
unbanked and underbanked survey, and
supported efforts of the Advisory Committee
on Economic Inclusion (ComE-In).
- Began a comprehensive study of the trends
and events that contributed to the recent
- Provided senior/executive management
policy research and analysis in support of
legislative efforts to reform financial industry
regulation, as well as support for testimonies
- Published economic and banking
information and analyses, through the FDIC
Quarterly, FDIC Quarterly Banking Profile (QBP), FDIC State Profiles, and the Center for
Financial Research Working Papers.
- Conducted over 40 outreach events for
bankers and community groups to discuss
risks affecting the financial services industry.
- Answered 99 percent of written inquiries
from consumers and bankers about FDIC
deposit insurance coverage within 14 days.
- Electronic Deposit Insurance Estimator
(EDIE) user sessions for 2010 totaled
- Expanded avenues for publicizing deposit
insurance rules and resources by:
- Enhancing EDIE to (1) incorporate new
functionality that allows users to calculate
coverage for irrevocable trust accounts
and government accounts and (2) provide
each FDIC-insured bank the opportunity
to integrate the EDIE application into
the bank’s website.
- Producing an updated version of the
FDIC Overview Video on Deposit
Insurance Coverage for consumers and
new bank employees.
- Updating the FDIC’s consumer and
banker brochures on deposit insurance
- These resources are available on the FDIC’s
website with the video also available on the
FDIC’s YouTube channel and downloadable
for multimedia applications.
- Developed computer-based training for
all FDIC examiners on FDIC deposit
insurance coverage. The training provides an
opportunity for all examiners to strengthen
and enhance their knowledge of deposit
insurance and the risks associated with
insured institutions engaging in deposit
Supervision and Consumer Protection
- Conducted 2,813 Bank Secrecy Act
examinations, including required follow-up
examinations and visitations.
- Conducted 2,121 IT examinations of
financial institutions and technology service
- Worked with other federal banking
regulators and the Basel Committee on
Banking Supervision to develop proposals to
strengthen capital and liquidity requirements.
- Published Final Rulemaking for the Secure
and Fair Enforcement for Mortgage
Licensing Act of 2008 and posted the final
guidance to the FDIC website to implement
provisions applicable to mortgage loan
originators employed by insured depositories.
- Published the Supervisory Insights journal to
contribute to and promote sound principles
and best practices for bank supervision.
- Among other releases, issued Financial
Institution Letters (FILs) providing
guidance on (1) meeting the needs of
creditworthy small business borrowers; (2)
identifying, monitoring, and managing
correspondent concentration risks; (3)
prudent appraisal and evaluation programs;
(4) incentive compensation practices; (5)
golden parachute payments; (6) deposit
collection and placement activities in FDIC-supervised
institutions; and (7) registering
as a municipal advisor under the Securities
and Exchange Commission’s new rule. In
addition, 23 disaster relief FILs were issued.
- Issued industry notification of two
interagency releases regarding conducting
cross-border funds transfers and examination
procedures for compliance with the Unlawful
Internet Gambling Enforcement Act.
- Issued joint final Community Reinvestment
Act (CRA) rule change corresponding to
statutory requirements relating to student
loans and activities in cooperation with
minority- and women-owned financial
institutions and low-income credit unions. In
addition, issued final CRA rule that revised
the definition of “community development”
in the CRA regulations, to provide favorable
CRA consideration for loans, investments,
and services by financial institutions that
directly support, enable or facilitate eligible
projects and activities in designated target
areas of the Neighborhood Stabilization
Program (NSP) that are approved by
the Department of Housing and Urban
- Announced annual adjustment to the asset
size thresholds used to define small bank,
small savings associations, intermediate
small bank and intermediate small savings
associations under the CRA regulations.
- Updated interagency guidance on the CRA.
Jointly issued, with other Federal Financial
Institutions Examination Council member
agencies, supervisory guidance on reverse
- Issued final supervisory guidance on overdraft
payment programs, which reaffirms existing
supervisory expectations and provides specific
guidance with respect to automated overdraft
- Issued guidance to assist lenders in meeting their compliance obligations under the National Flood Insurance Program (NFIP) during periods when the statutory authority of the Federal Emergency Management Agency (FEMA) to issue flood insurance contracts under the NFIP lapses; released compliance guide for state non-member banks wishing to use the model privacy form to comply with disclosure requirements under the Gramm-Leach-Bliley Act; issued financial institutions notice on FEMA announcement that Preferred Risk Policy eligibility will be extended two years beginning January 1, 2011.
- Issued examination procedures corresponding
to amendments to Regulation CC
(Expedited Funds Availability); Regulation
Z (Truth in Lending) under the Credit
Card Accountability Responsibility and
Disclosure Act of 2009, the Higher
Education Opportunity Act of 2008, and
the Helping Families Save Their Homes Act
of 2009; Regulation DD (Truth in Savings);
Regulation E (Electronic Fund Transfers); the
Fair Credit Reporting Act (FCRA) Furnisher
Rule; and the FCRA Risk-Based Pricing
- Issued examination procedures for identifying
Unfair or Deceptive Acts or Practices that are
violations of Section 5 of the Federal Trade
Commission Act as well as for reviewing
third-party relationships and identifying
- Adopted a final rule requiring the largest
IDIs to adopt mechanisms that would, in the
event of the institution’s failure, (1) provide
the FDIC with standard deposit account and
other customer information and (2) allow the
placement and release of holds on liability
accounts, including deposits.
- Identified and implemented program
improvements to ensure efficient and
effective management of the contract
resources used to perform receivership
management functions. Implemented
enhanced reporting capabilities from the
Automated Procurement System.
- Optimized the effectiveness of oversight
managers and technical monitors by
restructuring work assignments, providing
enhanced technical support, and improving
- Terminated 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
- Made final decisions for 82 percent of all
investigated claim areas that were within 18
months of the institution’s failure date.