2016 Annual Report
II. Performance Results Summary
PERFORMANCE RESULTS BY PROGRAM AND STRATEGIC GOAL
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. |
| 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 |
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. | |||
| 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, 2016, and December 31, 2016. |
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, 2016, and December 31, 2016. | Achieved. | ||
| 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. |
Foster strong relationships with international banking regulators, deposit insurers, and other relevant authorities by engaging with strategically important jurisdictions and organizations on key international financial safety net issues. |
Achieved. |
|
Continue to play leadership roles within key international organizations and associations and promote sound deposit insurance, bank supervision, and resolution practices. |
Achieved. | |||
| Provision of technical assistance to foreign counterparts. |
Promote continued enhancement of international standards and expertise in financial regulatory practices and stability through the provision of technical assistance and training to global financial system authorities. |
Achieved. | ||
| Develop and foster closer relationships with bank supervisors in the reviews through the provision of technical assistance and by leading governance efforts in the Association of Supervisors of Banks of the Americas (ASBA). | Achieved. | |||
| 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. |
| 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 four telephone or in-person seminars for bankers on deposit insurance coverage. | Achieved. |
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. |
| 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. | ||
| 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. |
| 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 in 2016, a Notice of (proposed) Rulemaking on the Basel III Net Stable Funding Ratio. | Achieved. |
| 4 |
Implement strategies to promote enhanced information security, cybersecurity, and business continuity within the banking industry. |
Enhancements to IT supervision program. |
Establish a horizontal review program that focuses on the IT risks in large and complex supervised institutions and Technology Service Providers (TSPs). |
Achieved. |
|
Complete by June 30, 2016, examiner training and implement by September 30, 2016, the new IT examination work program to enhance focus on information security, cybersecurity, and business continuity. |
Achieved. |
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 consumer 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. |
| 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. | ||
| 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 acknowledgment within two weeks. | Achieved. |
| 3 | Promote economic inclusion and access to responsible financial services through supervisory, research, policy, and consumer/community affairs initiatives. | Completion of planned initiatives. | Published the results of the 2015 FDIC National Survey of Unbanked and Underbanked Households. | Achieved. |
|
Promote broader awareness of the availability of low-cost transaction accounts consistent with the FDIC’s Model SAFE transaction account template. |
Achieved. | |||
|
Complete and present to the Advisory Committee on Economic Inclusions (ComE-IN) a report on the pilot Youth Savings Program (YSP) conducted jointly with the CFPB. |
Achieved. |
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, including those designated as systemically important. |
Completion of statutory and regulatory requirements under Title I of the DFA and Section 360.10 of the FDIC Rules and Regulations. |
In collaboration with the FRB continue to review all resolution plans subject to the requirements of Section 165(d) of the DFA to ensure their conformance to statutory and other regulatory requirements. Identify potential impediments in those plans to resolution under the Bankruptcy Code. |
Achieved. |
|
Continue to review all resolution plans subject to the requirements of Section 360.10 of the IDI rule to ensure their conformance to statutory and other regulatory time frames. Identify potential impediments to resolvability under the Federal Deposit Insurance (FDI) Act. |
Achieved. | |||
| 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. |
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 failure date (for structured sales). | Achieved. |
| 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. |
| 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. |
| 4 | Ensure the FDIC’s operational readiness to administer the resolution of large, financial institutions, including those designated as systemically important. | Establishment of resolution plans and strategies. |
Refine plans to ensure the FDIC’s operational readiness to administer the resolution of large financial institutions including those designated as systemically important. |
Achieved. |
| Meetings of the Systemic Resolution Advisory Committee (SRAC). |
Hold a meeting of the Systemic Resolution Advisory Committee in early 2016 to obtain feedback on resolving SIFIs. |
Achieved. | ||
| Enhanced cross-border coordination and cooperation in resolution planning. | Continue to deepen and strengthen bilateral working relationships with key foreign jurisdictions. | Achieved. |