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2012 Annual Report

Performance Results by Program and Strategic Goal

2012 Insurance Program Results

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

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Annual Performance Goal

Indicator

Target

Results

1

Respond promptly to all financial institution closings and related 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.

Achieved.

Depositors have access to insured funds within two business days if the failure occurs on any other day of the week.

Achieved.

Insured depositor losses resulting from a financial institution failure.

Depositors do not incur any losses on insured deposits.

Achieved.

No appropriated funds are required to pay insured depositors.

Achieved.

2

Deepen the FDIC’s understanding of the future of community banking.

Completion and publication of research.

Conduct a nationwide conference on the future of community banking during the first quarter of 2012.

Achieved.

Publish by December 31, 2012, a research study on the future of community banks, focusing on their evolution, characteristics, performance, challenges, and role in supporting local communities.

Achieved.

3

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.

Undertake industry outreach activities to inform bankers and other stakeholders about current trends, concerns, and other available FDIC resources.

Achieved.

4

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, 2012, and December 31, 2012.

Achieved.

Recommend changes to deposit insurance assessment rates to the FDIC Board of Directors as necessary.

Achieved.

Demonstrated progress in achieving the goals of the Restoration Plan.

Provide progress reports to the FDIC Board of Directors by June 30, 2012, and December 31, 2012.

Achieved.

Analysis of possible refinements to the deposit insurance pricing methodology.

Provide to the Chairman by September 1, 2012, an analysis, with recommendations where appropriate, of refinements to the deposit insurance pricing methodology for banks with assets under $10 billion.

Achieved

5

Expand and strengthen the FDIC’s participation and leadership role in supporting robust international deposit insurance and banking systems.

Scope of information sharing and assistance available to international governmental bank regulatory and deposit insurance entities.

Maintain open dialogue with counterparts in strategically important countries as well as international financial institutions and partner U.S. agencies.

Achieved.

Foster strong relationships with international banking regulators and associations that promote sound banking supervision and regulation, failure resolutions, and deposit insurance practices.

Achieved.

Target capacity building based on the assessment methodology of the BCBS and IADI Core Principles for an Effective Deposit Insurance System.

Achieved.

Lead and support the Association of Supervisors of Banks of the America’s efforts to promote sound banking principles throughout the Western Hemisphere.

Achieved.

6

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.

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.

2012 Supervision and Consumer Protection Program Results

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

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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.

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.

2

For all institutions that are assigned a composite Uniform Financial Institutions Rating of 3, 4, or 5, conduct on-site visits within six months after implementation of a corrective program. Ensure during these visits and subsequent examinations that the institution is fulfilling the requirements of the corrective program that has been implemented and that the actions taken are effectively addressing the underlying concerns identified during the examination.

Percentage of follow-up examinations and on-site visits of 3-, 4-, or 5-rated institutions conducted within required time frames.

Conduct 100 percent of required on-site visits within six months after implementation of a corrective program.

Achieved.

 

3

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.

 

4

More closely align regulatory capital standards with risk and ensure that capital is maintained at prudential levels.

Issuance by the federal banking agencies of rules implementing alternative standards of creditworthiness for credit rating in risk-based capital rules.

Complete by December 31, 2012, final rules addressing alternative standards of creditworthiness for credit ratings in the risk-based capital rules.

Not Achieved.

Issuance by the federal banking agencies of rules to implement internationally agreed upon enhancements to regulatory capital standards.

Complete by December 31, 2012, a final rule for the Basel III capital standards.

Not Achieved.

Complete by July 31, 2012, a final rule on the Market Risk Amendment, including finalizing alternatives to the use of credit ratings in accordance with DFA requirements.

Achieved.

5

Identify and address risks in financial institutions designated as systemically important.

Issuance of rules and policy guidance (with other financial regulatory agencies) to implement provisions of DFA applicable to systemically important institutions and markets.

Take all steps necessary to facilitate timely issuance of implementing regulations and related policy guidance on proprietary trading and other investment restrictions (also known as the Volcker Rule).

Achieved.

Take all steps necessary to facilitate timely issuance of implementing regulations and related policy guidance on restrictions on federal assistance to swap entities.

Achieved.

Take all steps necessary to facilitate timely issuance of implementing regulations and related policy guidance on capital and margin and other requirements for OTC derivatives.

Achieved.

Take all steps necessary to facilitate timely issuance of implementing regulations and related policy guidance on credit risk retention requirements for securitizations.

Achieved.

Take all steps necessary to facilitate timely issuance of implementing regulations and related policy guidance on enhanced compensation structure and incentive compensation requirements.

Achieved.

Establishment of institution monitoring and resolution planning programs for systemically important institutions.

Monitor risk within and across large, complex firms to assess the potential need for, and obtain the information that would be required to carry out, if necessary, an FDIC resolution of the institution.

Achieved.

Establish by June 30, 2012, with the FRB, policies and procedures for collecting, processing, and reviewing for completeness and sufficiency holding company and insured depository institution (IDI) resolution plans submitted under Section 165(d) of DFA.

Achieved.

Completed reviews of resolution plans.

Complete, with the FRB and in accordance with prescribed time frames, the review of holding company and IDI resolution plans submitted under Section 165(d) of DFA.

Achieved.

2012 Supervision and Consumer Protection Program Results

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

6

Conduct on-site CRA and compliance examinations to assess compliance with applicable laws and regulations by FDIC-supervised depository institutions.

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.

Achieved.

7

Take prompt and effective supervisory action to address problems identified during compliance examinations of FDIC-supervised institutions that receive a composite 3, 4, or 5 rating for compliance with consumer protection and fair lending laws. Ensure that each institution is fulfilling the requirements of any corrective program that has been implemented and that the actions taken are effectively addressing the underlying concerns identified during the examination.

Percentage of follow-up examinations or on-site visits of 3-, 4-, and 5-rated institutions conducted within required time frames.

Conduct follow-up examinations or on-site visits for any unfavorably rated (3, 4, or 5) institution within 12 months of completion of the prior examination.

Achieved.

8

Establish an effective working relationship with the new Consumer Financial Protection Bureau (CFPB).

Transfer of complaint processing responsibilities.

Complete the transfer of consumer compliant processing responsibilities within the purview of the CFPB within approved time frames.

Achieved.

9

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.

10

Promote economic inclusion and access to responsible financial services through supervisory, research, policy, and consumer/community affairs initiatives.

Completion of planned initiatives.

Complete and publish results of the second biennial National Survey of Unbanked and Underbanked Households and Banks’ Efforts to Serve the Unbanked and Underbanked.

 

Achieved.

Plan and hold meetings of the Advisory Committee on Economic Inclusion to gain feedback and advice on FDIC efforts to promote inclusion.

Achieved.

Coordinate 25 CRA community forums nationwide to facilitate community development opportunities for financial institutions.

Achieved.

2012 Receivership Management Program Results

Strategic Goal: Resolutions are orderly and receiverships are managed effectively.

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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.

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.

 

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.

4

Complete reviews of all loss-share and Limited Liability Corporation (LLC) agreements to ensure full compliance with the terms and conditions of the agreements.

Percentage of reviews of loss-share and LLC agreements completed and action plans implemented.

Complete reviews of 100 percent of the loss-share and LLC agreements active as of December 31, 2011, to ensure full compliance with the terms and conditions of the agreements.

Achieved.

Review the final report and implement an action plan to address the report’s finding and recommendations for 80 percent of the loss-share reviews and 70 percent of the LLC reviews.

Achieved.

5

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.


Last Updated 07/03/2013 communications@fdic.gov