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2011 Annual Report

3. Performance Results Summary

Prior Years’ Performance Results

Refer to the respective full Annual Report of prior years for more information on performance results for those years. Minor wording changes may have been made to reflect current goals and targets. (Shaded areas indicate no such target existed for that respective year.)

Insurance Program Results

Strategic Goal: Insured depositors are protected from loss without recourse to taxpayer funding.

Annual Performance Goals and Targets 2010 2009 2008
1. Respond promptly to all financial institution closings and emerging issues.  
Depositors have access to insured funds within one business day if the failure occurs on a Friday. Achieved. Achieved. Achieved.
Depositors have access to insured funds within two business days if the failure occurs on any other day of the week. Achieved. Achieved. Achieved.
Complete rulemaking/review comments received in response to the Advance Notice of Proposed Rulemaking on Large-Bank Deposit Insurance Determination Modernization.     Achieved.
There are no depositor losses on insured deposits. Achieved. Achieved. Achieved.
No appropriated funds are required to pay insured depositors. Achieved. Achieved. Achieved.
2. Identify and address risks to the Deposit Insurance Fund (DIF).  
Assess the insurance risks in large (all for 2008-2009) insured depository institutions and adopt appropriate strategies.   Achieved. Achieved.
Identify and follow up on all material issues raised through off-site review and analysis.   Achieved. Achieved.
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.   Achieved. Achieved.
Address potential risks from cross-border banking instability through coordinated review of critical issues and, where appropriate, negotiate agreements with key authorities.     Achieved.
3. Disseminate data and analyses on issues and risks affecting the financial services industry to bankers, supervisors, the public, and other stakeholders.  
Disseminate results of research and analyses in a timely manner through regular publications, ad hoc reports, and other means. Achieved. Achieved. Achieved.
Industry outreach activities are undertaken to inform bankers and other stakeholders about current trends, concerns, and other available FDIC resources. Achieved. Achieved. Achieved.
4. Effectively administer temporary financial stability programs.  
Provide liquidity to the banking system by guaranteeing noninterest-bearing transaction deposit account and new senior unsecured debt issued by eligible institutions under the TLGP.   Achieved.  
Implement an orderly phase-out of new guarantees under the program when the period for issuance of new debt expires.   Achieved.  
Substantially complete by September 30, 2009, the review of and recommendations to the Department of Treasury on CPP applications from FDIC-supervised institutions.   Achieved.  
Expeditiously implement procedures for the LLP, including the guarantee to be provided for debt issued by Public Private Investment Funds, and provide information to financial institutions and private investors potentially interested in participating.   Achieved.  
Expeditiously implement procedures to review the use of CPP funds, TLGP guarantees, and other resources made available under financial stability programs during examinations of participating FDIC-supervised institutions.   Achieved.  
5. Set assessment rates to restore the insurance fund reserve ratio to the statutory minimum of at least 1.15% of estimated insured deposits by year-end 2016, in accordance with the Amended Restoration Plan.  
Provide updated fund projections to the FDIC Board of Directors by June 30, 2010, and December 31, 2010. Achieved.    
Recommend deposit insurance assessment rates for the DIF to the FDIC Board as necessary. Achieved.    
Provide updates to the FDIC Board by June 30, 2010, and December 31, 2010. Achieved.    
6. Maintain and improve the deposit insurance system.  
Adopt and implement revisions to the pricing regulations that provide for greater risk differentiation among insured depository institutions reflecting both the probability of default and loss in the event of default.   Achieved.  
Revise the guidelines and enhance the additional risk measures used to adjust assessment rates for large institutions.   Achieved.  
Review the effectiveness of the new pricing regulations that were adopted to implement the reform legislation.     Achieved.
Enhance the additional risk measures used to adjust assessment rates for large institutions.     Achieved.
Develop a final rule on a permanent dividend system.     Achieved.
Ensure/enhance 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.   Achieved. Achieved.
Set assessment rates to maintain the insurance fund reserve ratio between 1.15 and 1.50 percent of estimated insured deposits. Restore to 1.15 percent by year-end 2015.   Achieved. Not Achieved.
Monitor progress in achieving the restoration plan.   Achieved.  
7. 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.  
Conduct at least three sets of Deposit Insurance Seminar/teleconferences (per quarter in 2009) for bankers.   Achieved. Achieved.
Conduct outreach events and activities to support a deposit insurance education program that features the FDIC 75th anniversary theme.     Achieved.
Assess the feasibility of (and if feasible, define the requirements for) a consolidated Electronic Deposit Insurance Estimator (EDIE) application for bankers and consumers (to be developed in 2009).     Achieved.
Respond to 90 percent of inquiries from consumers and bankers about FDIC deposit insurance coverage within time frames established by policy.     Achieved.
Respond to 90 percent of written inquiries from consumers and bankers about FDIC deposit insurance coverage within two weeks.   Achieved.  
Enter into deposit insurance education partnerships with consumer organizations to educate consumers.   Achieved.  
Expand avenues for publicizing deposits insurance rules and resources to consumers through a variety of media.   Achieved.  
8. Expand and strengthen the FDIC’s participation and leadership role in providing technical guidance, training, consulting services, and information to international governmental banking and deposit insurance organizations; and in supporting robust international deposit insurance systems.  
Undertake outreach activities to inform and train foreign bank regulators and deposit insurers. Achieved. Achieved. Achieved.
Foster strong relationships with international banking regulators and associations that promote sound banking supervision and regulations, failure resolutions and deposit insurance practices. Achieved. Achieved. Achieved.
Develop methodology for assessing compliance with implementation of the Core Principles for Effective Deposit Insurance Systems. Achieved.    

SUPERVISION AND CONSUMER PROTECTION PROGRAM RESULTS

Strategic Goal: FDIC-supervised institutions are safe and sound.

Annual Performance Goals and Targets 2010 2009 2008
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.  
One hundred percent of required risk management examinations are conducted on schedule. Achieved. Achieved. Achieved.
2. Take prompt and effective supervisory action to address unresolved problems identified during the FDIC examination of FDIC-supervised institutions that receive a composite Uniform Financial Institutions Rating of “3”, “4”, or “5” (problem institution). Monitor FDIC-supervised insured depository institutions’ compliance with formal and informal enforcement actions.  
One hundred percent of required on-site visits are conducted within six months of completion of the prior examination to confirm that the institution is fulfilling the requirements of the corrective program. Achieved.    
One hundred percent of follow-up examinations are conducted within 12 months of completion of the prior examination to confirm that identified problems have been corrected. Achieved. Achieved. Achieved.
3. Assist in protecting the infrastructure of the U.S. banking system against terrorist financing, money laundering and other financial crimes.  
One hundred percent of required Bank Secrecy Act (BSA) examinations are conducted on schedule. Achieved. Achieved. Achieved.
4. More closely align regulatory capital with risk in large or multinational banks while maintaining capital at prudential levels.  
Develop options for refining Basel II that are responsive to lessons learned from the 2007-2008 market turmoil.     Achieved.
Conduct analyses of early results of the performance of new capital rules in light of recent financial turmoil as information becomes available.   Achieved. Achieved.
Working domestically and internationally, develop improvements to regulatory capital requirements based on the experience of the recent financial market turmoil.   Achieved.  
5. More closely align regulatory capital with risk and ensure that capital is maintained at prudential levels.  
Complete by December 31, 2010, the rulemaking for implementing the Standardized Approach for an appropriate subset of U.S. banks. Deferred.    
Complete by December 31, 2010, the rulemaking for amending the floors for banks that calculate their risk-based capital requirements under the Advanced Approaches Capital rule to ensure capital requirements meet safety-and-soundness objectives. Not Achieved.    
Complete by December 31, 2010, the rulemaking for implementing revisions to the Market Risk Amendment of 1996. Deferred.    
Complete by December 31, 2010, the rulemaking for implementing revisions to regulatory capital charges for resecuritizations and asset-backed commercial paper liquidity facilities. Deferred.    
6. More closely align regulatory capital with risk in banks not subject to Basel II capital rules while maintaining capital at prudential levels.  
Finalize a regulatory capital framework based on the Basel II “Standardized Approach” as an option for U.S. banks not required to use the new advanced approaches.     Achieved.
7. Ensure that FDIC-supervised institutions that plan to operate under the new Basel II Capital Accord are well positioned to respond to the new capital requirements.  
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.     Not Applicable.
8. Reduce regulatory burden on the banking industry while maintaining appropriate consumer protection and safety and soundness safeguards.  
Complete and evaluate options for refining the current risk-focused approach used in the conduct of BSA/AML examinations to reduce the burden they impose on FDIC-supervised institutions.     Achieved.

Strategic Goal: Consumers’ rights are protected and FDIC-supervised institutions invest in their communities.

Annual Performance Goals and Targets 2010 2009 2008
1. Conduct on-site CRA and compliance examinations to assess compliance with applicable laws and regulations by FDIC-supervised depository institutions and in accordance with the FDIC’s examination frequency policy.  
One hundred percent of required examinations are conducted on schedule. Achieved. Achieved. Achieved.
2. Take prompt and effective supervisory action to monitor and address problems identified during compliance examinations of FDIC-supervised institutions that received an overall “3”, “4”, or “5” rating for compliance with consumer protection and fair lending laws.  
One hundred percent of follow-up examinations or visitations are conducted within 12 months from the date of a formal enforcement action to confirm compliance with the prescribed enforcement action. Achieved. Not Achieved. Achieved.

Strategic Goal: FDIC-supervised institutions are safe and sound.

Annual Performance Goals and Targets 2010 2009 2008
3. 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.  
Complete a review of the effectiveness of the 2007 instructions issued on the handling of repeat instances of significant violations identified during compliance examinations.     Achieved.
4. 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.  
Proactively identify and respond to harmful or illegal practices associated with evolving consumer products.   Achieved. Achieved.
Develop and implement new supervisory response programs across all FDIC-supervised institutions to address potential risks posed by new consumer products.     Achieved.
5. Provide effective outreach related to the CRA, fair lending, and community development.  
Conduct 50 in 2009 (125 in prior years) technical assistance (examination support) efforts or banker/community outreach activities related to CRA, fair lending, and community development.   Achieved. Achieved.
Evaluate the Money Smart initiative and curricula for necessary updates and enhancements, such as games for young people, information on elder financial abuse, and additional language versions, if needed.   Achieved.  
Initiate the longitudinal survey project to measure the effectiveness of the Money Smart for Young Adults curriculum.   Achieved.  
Release a “Young Adult” version of the Money Smart curriculum.     Achieved.
Distribute at least 10,000 copies of the “Young Adult” version of Money Smart.     Achieved.
Analysis of survey results is disseminated within six months of completion of the survey through regular publications, ad hoc reports, and other means.     Achieved.
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.   Achieved. Achieved.
6. 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.  
Expand the number of AEI coalitions by two.   Achieved.  
Analyze quarterly data submitted by participating institutions to identify early trends and potential best practices.   Achieved. Achieved.
Open 27,000 new bank accounts.     Achieved.
Initiate new small-dollar loan products in 32 financial institutions.     Achieved.
Initiate remittance products in 32 financial institutions.     Achieved.
Reach 18,000 consumers through financial education initiatives.     Achieved.
7. Educate consumers about their rights and responsibilities under consumer protection laws and regulations.  
Expand the use of media, such as the Internet, videos, and MP3 downloads, to disseminate information to the public on their rights and responsibilities as consumers.   Achieved.  
8. Effectively investigate and respond to written consumer complaints and inquiries about FDIC-supervised financial institutions.  
Responses are provided to 95 percent (90 percent for 2008) of written complaints and inquiries within time frames established by policy, with all complaints and inquiries receiving at least an initial acknowledgment within two weeks. Achieved. Achieved. Achieved.
9. Establish, in consultation with the FDIC’s Advisory Committee on Economic Inclusion and other regulatory agencies, national objectives and methods for reducing the number of unbanked and underbanked individuals.  
Facilitate completion of final recommendation on the initiatives identified in the Advisory Committee’s strategic plan. Achieved.    
Implement, or establish plans to implement, Advisory Committee recommendations approved by the FDIC for further action, including new research, demonstration and pilot projects, and new and revised supervisory and public policies. Achieved.    

RECEVERSHIP MANAGEMENT PROGRAM RESULTS

Strategic Goal: Recovery to creditors of receiverships is achieved.

Annual Performance Goals and Targets 2010 2009 2008
1. Market failing institutions to all known qualified and interested potential bidders.  
Contact all known qualified and interested bidders. Achieved. Achieved. Achieved.
2. Value, manage, and market assets of failed institutions and their subsidiaries in a timely manner to maximize net return.  
Ninety percent of the book value of a failed institution’s marketable assets is marketed within 90 days of failure.   Achieved. Achieved.
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.    
Implement enhanced reporting capabilities from the Automated Procurement System. Achieved.    
Ensure that all newly designated oversight managers and technical monitors receive training in advance of performing contract administration responsibilities. Achieved.    
Optimize the effectiveness of oversight managers and technical monitors by restructuring work assignments, providing enhanced technical support, and improving supervision. Achieved.    
Identify and implement program improvements to ensure efficient and effective management of the contract resources used to perform receivership management functions.   Achieved.  
3. Manage the receivership estate and its subsidiaries toward an orderly termination.  
Terminate all receiverships within 90 days of the resolution of all impediments.     Achieved.
Terminate within three years of the date of failure, at least 75 percent of new receiverships that are not subject to loss-share agreements, structured sales, or other legal impediments. Achieved. Achieved  
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.  
For 80 percent of all claim areas, a decision is made to close or pursue claims within 18 months of the failure date. Achieved. Achieved. Achieved.
Last Updated 09/05/2012 communications@fdic.gov