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Federal Deposit
Insurance Corporation

Each depositor insured to at least $250,000 per insured bank

2015 Annual Report

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II. Performance Results Summary

PERFORMANCE RESULTS BY PROGRAM AND STRATEGIC GOAL

2015 Insurance Program Results

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

# Annual Performance Goal Indicator Target Results
1 Respond promptly to all insured financial institution closings and related emerging issues.
Number of business days after an institution failure that depositors have access to insured funds. Depositors have access to insured funds within one business day if the failure occurs on a Friday. Achieved.
See pg. 45, or here.
Depositors have access to insured funds within two business days if the failure occurs on any other day of the week. Achieved.
See pg. 45, or here.
Insured depositor losses resulting from a financial institution failure. Depositors do not incur any losses on insured deposits. Achieved.
See pg. 45, or here.
No appropriated funds are required to pay insured depositors. Achieved.
See pg. 45, or here.
2 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.
See pg. 59-60, or here.
Undertake industry outreach activities to inform bankers and other stakeholders about current trends, concerns, and other available FDIC resources. Achieved.
See pg. 39-40, 47-52, or here.
3 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, 2015, and December 31, 2015. Achieved.
See pg. 59, or here.
Recommend changes to deposit insurance assessment rates to the FDIC Board of Directors as necessary. Achieved.
See pg. 59, or here.
Demonstrated progress in achieving the goals of the Restoration Plan. Provide progress reports to the FDIC Board of Directors by June 30, 2015, and December 31, 2015. Achieved.
See pg. 59, or here.
4 Expand and strengthen the FDIC’s participation and leadership role in supporting robust and effective deposit insurance programs, resolution strategies, and banking systems worldwide. Activities to expand and strengthen engagement with foreign jurisdictions and advance the FDIC’s global leadership and participation. Maintain open dialogue with counterparts in strategically important jurisdictions, international financial organizations and institutions, and partner U.S. agencies; and actively participate in bilateral interagency regulatory dialogues. Achieved.
See pgs. 49-50, or here.
Maintain a leadership position in the International Association of Deposit Insurers (IADI) by conducting workshops and performing assessments of deposit insurance systems based on the methodology for assessment of compliance with the IADI Core Principles for Effective Deposit Insurance Systems (Core Principles), developing and conducting training on priority topics identified by IADI members, and actively participating in IADI’s Executive Council and Standing Committees. Achieved.
See pgs. 47-48, or here.
Maintain open dialogue with the Association of Supervisors of Banks of the Americas (ASBA) to develop and foster relationships with bank supervisors in the region by providing assistance when necessary. Achieved.
See pgs. 48, or here.
Engage with authorities responsible for resolutions and resolutions planning in priority foreign jurisdictions and contribute to the resolution-related agenda of the Financial Stability Board(FSB) through active participation in theFSB’s Resolution Steering Group (ReSG). Achieved.
See pgs. 47, or here.
Provision of technical assistance to foreign counterparts. Support visits, study tours, and longer-term technical assistance and training programs for foreign jurisdictions to strengthen their deposit insurance organizations, central banks, bank supervisors, and resolution authorities. Achieved.
See pg. 49-50, or here.
5 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.
See pg. 45, or here.
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.
See pg. 44, or here.
Initiatives to increase public awareness of deposit insurance coverage changes. Conduct at least 4 telephone or in-person seminars for bankers on deposit insurance coverage. Achieved.
See pg. 44, or here.
Complete and post on the FDIC website videos for bankers and consumers on deposit insurance coverage. Achieved.
See pg. 44, or here.

2015 SUPERVISION AND CONSUMER PROTECTION PROGRAM RESULTS

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

# 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. When problems are identified, promptly implement appropriate corrective programs, and follow up to ensure that identified problems are corrected. 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.
See pg. 26-27, or here.
Follow-up actions on identified problems. For at least 90 percent of institutions that are assigned a composite CAMELS rating of 2 and for which the examination report identifies “Matters Requiring
Board Attention” (MRBAs), review progress reports and follow up with the institution within six months of the issuance of the examination report to ensure that all MRBAs are being addressed.
Achieved.
See pg. 60, or here.
2 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.
See pg. 26-27, or here.
3 More closely align regulatory capital standards with risk and ensure that capital is maintained at prudential levels. U.S. implementation of internationally agreed regulatory standards. Publish by December 31, 2015,
an interagency Notice of Proposed
Rulemaking on implementation of the Basel III Net Stable Funding Ratio.
Not Achieved.
See pgs. 18, or here.
4 Implement strategies to promote enhanced information security, cybersecurity, and business continuity within the banking industry. Enhancements to IT supervision program. Enhance the technical expertise of the IT supervisory workforce. Achieved.
See pgs. 29-30, or here.
Working with FFIEC counterparts, update and strengthen IT guidance to the industry on cybersecurity preparedness. Achieved.
See pg. 30, or here.
Working with the FFIEC counterparts, update and strengthen IT examination work programs for institutions and technology service providers (TSPs) to evaluate cybersecurity preparedness and cyber resiliency. Achieved.
See pg. 30, or here.
Improve information sharing on identified technology risks among the IT examination workforces of FFIEC member agencies. Achieved.
See pg. 30, or here.

2015 supervision and consumer protection program results (continued)

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

# Annual Performance Goal Indicator Target Results
1 Conduct on-site CRA and compliance examinations to assess compliance with applicable laws and regulations by FDIC-supervised depository institutions. When violations are identified, promptly implement appropriate corrective programs and follow up to ensure that identified problems are corrected. Percentage of examinations conducted in accordance with the time frames prescribed by FDIC policy. Conduct all required examinations within the time frames established by FDIC policy. Achieved.
See pg. 27, or here.
Implementation of corrective programs. Conduct visits and/or follow-up examinations in accordance with established FDIC policies to ensure that the requirements of any required corrective program have been implemented and are effectively addressing identified violations. Achieved.
See pg. 26-28, or here.
2 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.
See pg. 43, or here.
3 Promote economic inclusion and access to responsible financial services through supervisory, research, policy, and consumer/community affairs initiatives. Completion of planned initiatives. Revise, test, and administer the 2015 FDIC National Survey of Unbanked and Underbanked Households. Achieved.
See pg. 36-37, or here.
Support the Advisory Committee on Economic Inclusion in expanding the availability and awareness of low-cost transaction accounts, consistent with the FDIC’s SAFE account template. Achieved.
See pg. 36, or here.
In partnership with the Consumer Financial Protection Bureau, enhance financial capability among school-age
children through (1) development and delivery of tailored financial education materials; (2) resources and outreach targeted to youth, parents, and teachers; and (3) implementation of a pilot youth savings program.
Achieved.
See pgs. 38-39, or here.

2015 supervision and consumer protection program results (continued)

Strategic Goal: Large and complex financial institutions are resolvable in an orderly manner under bankruptcy.

# Annual Performance Goal Indicator Target Results
1 Identify and address risks in large, complex financial institutions. Risk monitoring of large, complex financial institutions, bank holding companies and designated nonbanking firms. Conduct ongoing risk analysis and monitoring of large, complex financial institutions to understand and assess their structure, business activities, risk profiles, and resolution and recovery plans. Achieved.
See pg. 21-24, or here.
Completion of statutory and regulatory requirements under Title I of DFA. Complete, in collaboration with the FRB and in accordance with statutory and regulatory time frames, a review of resolution plans submitted by individual financial companies subject to the requirements of section 165 (d) of DFA and Part 360.10 of the FDIC Rules and Regulations. Achieved.
See pg. 22-23, or here.

2015 RECEIVERSHIP MANAGEMENT PROGRAM RESULTS

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

# Annual Performance Goal Indicator Target Results
1 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.
See pg. 45-46, or here.
2 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.
See pg. 60, or here.
3 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.
See pg. 47, or here.
4 Ensure the FDIC’s operational readiness to resolve a large, complex financial institution using the orderly liquidation
authority in Title II of the DFA.
Establishment of resolution plans and strategies. Update and refine firm-specific resolutions plans and strategies and develop operational procedures for the
administration of a Title II receivership.
Achieved.
See pg. 24, or here.
Meetings of the Systemic Resolution Advisory Committee (SRAC). Prepare for an early 2016 meeting of the Systemic Resolution Advisory Committee to obtain feedback on resolving SIFIs. Achieved.
See pg. 25, or here.
Enhanced cross-border coordination and cooperation in resolution planning. Continue to deepen and strengthen bilateral working relationships with key foreign jurisdictions. Achieved.
See pg. 24-25, or here.

 

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