II. Performance Results Summary
SUMMARY OF 2016 PERFORMANCE RESULTS BY PROGRAM
The FDIC successfully achieved all of the 37 annual performance targets established in its 2016 Annual Performance Plan. There were no instances in which 2016 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 responsibilities.
Additional key accomplishments are noted below.
- Updated the FDIC Board of Directors on loss, income, and reserve ratio projections for the Deposit Insurance Fund (DIF) at the March and September meetings.
- Briefed the FDIC Board of Directors in March and September on progress in meeting the goals of the Restoration Plan.
- Published a final rule, which was adopted by the FDIC Board of Directors, to increase the reserve ratio of the DIF from 1.15 percent to 1.35 percent by September 30, 2020, by imposing a surcharge on insured depository institutions with assets of $10 billion or more.
- Published a revenue-neutral final rule, which was adopted by the FDIC Board of Directors, to improve the risk-based deposit insurance assessment system applicable to established small banks to more accurately reflect risk.
- 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 DIF.
- Provided policy research and analysis to FDIC leadership in support of the implementation of financial industry regulation, as well as support for testimony and speeches.
- 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.
- Operated the Electronic Deposit Insurance Estimator (EDIE), which had 691,375 user sessions in 2016.
Supervision and Consumer Protection
- A total of 395 institutions were assigned a composite CAMELS rating of 2 and had Matters Requiring Board Attention (MRBAs) identified in the examination reports. To ensure that MRBAs are being appropriately addressed at these institutions, the FDIC timely reviews progress reports and follows up with bank management as needed. More specifically, within six months of issuing the examination reports, the FDIC conducted appropriate follow up and review of these MRBAs at 381 (96 percent) of these institutions. Follow up and review of the MRBAs at the remaining 14 institutions (4 percent) occurred more than six months after issuing the examination reports primarily due to delayed responses from some banks as well as the need for additional information in order to complete a full review.
- Participated in the examinations of selected financial institutions, for which the FDIC is not the primary federal regulator, to assess risk to the DIF.
- Implemented the strategy outlined in the work plan approved by the Advisory Committee on Economic Inclusion to support the expanded availability of SAFE accounts and the responsible use of technology, to expand banking services to the underbanked.
- Published an edition of Supervisory Insights that included information on strategic planning in an evolving earnings environment, new requirements related to investments in securitizations as a result of the Dodd-Frank Act, and recently released regulations and supervisory guidance.
- 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 failure.
- Continued to enhance the FDIC’s ability to administer deposit insurance claims at large insured deposit institutions.
- Evaluated within 120 days all termination offers from Limited Liability Corporation (LLC) managing members to determine whether to pursue dissolution of those LLCs that are determined to be in the best overall economic interest of the participating receiverships.