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Federal Deposit
Insurance Corporation

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

2016 Annual Report

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II. Performance Results Summary

PRIOR YEARS’ PERFORMANCE RESULTS

Refer to the respective full Annual Report of prior years, located on the FDIC’s website for more information on performance results for those years. Shaded areas indicate no such target existed for that respective year.

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

INSURANCE PROGRAM RESULTS
Annual Performance Goals and Targets 2015 2014 2013
1. Respond promptly to all financial institution closings and related 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.
Depositors do not incur any losses on insured deposits. Achieved. Achieved. Achieved.
No appropriated funds are required to pay insured depositors. Achieved. Achieved. 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.
Disseminate results of research and analyses in a timely manner through regular publications, ad hoc reports, and other means. Achieved. Achieved. Achieved.
Undertake industry outreach activities to inform bankers and other stakeholders about current trends, concerns, and other available FDIC resources. Achieved. Achieved. 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.
Provide updated fund balance projections to the FDIC Board of Directors by June 30, 2015, and December 31, 2015. Achieved.    
Provide updated fund projections to the FDIC Board of Directors by June 30, 2014, and December 31, 2014.   Achieved.  
Provide updated fund projections to the FDIC Board of Directors by June 30, 2013, and December 31, 2013.     Achieved.
Provide progress reports to the FDIC Board of Directors by June 30, 2015, and December 31, 2015. Achieved.    
Provide progress reports to the FDIC Board of Directors by June 30, 2014, and December 31, 2014.   Achieved.  
Provide progress reports to the FDIC Board of Directors by June 30, 2013, and December 31, 2013.     Achieved.
Recommend changes to deposit insurance assessment rates for the DIF to the FDIC Board as necessary. Achieved. Achieved. 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.
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.    
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. Achieved.  
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.    
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 the FSB's Resolution Steering Group (ReSG). Achieved.    
Support visits, study tours, secondments, and longer-term technical assistance and training programs for representatives for foreign jurisdictions to strengthen their deposit insurance organizations, central banks, bank supervisors, and resolution authorities.   Achieved.  
Maintain open dialogue with counterparts in strategically important countries as well as international financial institutions and partner U.S. agencies.   Achieved.  
Engage with authorities responsible for resolutions and resolutions planning in priority foreign jurisdictions.   Achieved.  
Contribute to the resolution-related agenda of the Financial Stability Board (FSB) through active participation in the FSB’s Resolution Steering Group and its working groups.   Achieved.  
Actively participate in bilateral interagency regulatory dialogues.   Achieved.  
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.  
5. Expand and strengthen the FDIC’s participation and leadership role in supporting robust international deposit insurance and banking systems.
Maintain open dialogue with counterparts in strategically important countries as well as international financial institutions and partner U.S. agencies.     Achieved.
Conduct workshops and assessments of deposit insurance systems based on the methodology for assessment of compliance with the Basel Committee on Bank Supervision (BCBS) and the International Association of Depositor Insurers (IADI) Core Principles for Effective Deposit Insurance Systems.     Achieved.
Support visits, study tours, and longer-term technical assistance and training programs for foreign jurisdictions to strengthen their deposit insurance organizations, central banks, and bank supervisors.     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.
Respond within two weeks to 95 percent of written inquiries from consumers and bankers about FDIC deposit insurance coverage. Achieved. Achieved. Achieved.
Conduct at least 4 telephone or in-person seminars for bankers on deposit insurance coverage. Achieved.    
Complete and post on the FDIC website videos for bankers and consumers on deposit insurance coverage. Achieved.    
Conduct at least 12 telephone or in-person seminars for bankers on deposit insurance coverage..   Achieved.  
Conduct at least 15 telephone or in-person seminars for bankers on deposit insurance coverage.     Achieved.

 

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

Supervision Program Results
Annual Performance Goals and Targets 2015 2014 2013
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.
Conduct all required risk management examinations within the time frames prescribed by statute and FDIC policy. Achieved. Achieved. Achieved.
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.    
Implement formal or informal enforcement actions within 60 days for at least 90 percent of all institutions that are newly downgraded to a composite Uniform Financial Institutions Rating of 3, 4, or 5.   Substantially
Achieved.
Substantially
Achieved.1
2. Assist in protecting the infrastructure of the U.S. banking system against terrorist financing, money laundering, and other financial crimes.
Conduct all Bank Secrecy Act examinations within the time frames prescribed by statute and FDIC policy. Achieved. Achieved. Achieved.
3. More closely align regulatory capital standards with risk and ensure that capital is maintained at prudential levels.
Publish by December 31, 2015, an interagency Notice of Proposed Rulemaking on implementation of the Basel III Net Stable Funding Ratio. Not
Achieved.
   
Finalize Basel III reporting instructions in time to ensure that institutions that are using the advanced approaches can implement Basel III in the first quarter of 2014 and that all IDIs can implement the standardized approach in the first quarter of 2015.   Achieved.  
Publish a final Basel Liquidity Coverage Rule, in collaboration with other regulators by December 31, 2014.   Achieved.  
Publish a final rule implementing the Basel III capital accord in collaboration with other regulators, by December 31, 2014.   Achieved.  
Finalize, in collaboration with other regulators, an enhanced U.S. supplementary leverage ratio standard by December 31, 2014.   Achieved.  
Complete by June 30, 2013, the review of comments and impact analysis of June 2012 proposed interagency changes to regulatory capital rules.     Achieved.
Issue by December 31, 2013, final regulatory capital rules.     Achieved.
4. Implement strategies to promote enhanced information security, cybersecurity, and business continuity within the banking industry.
Enhance the technical expertise of the IT supervisory workforce. Achieved.    
Working with FFIEC counterparts, update and strengthen IT guidance to the industry on cybersecurity preparedness. Achieved.    
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.    
Improve information sharing on identified technology risks among the IT examination workforces of FFIEC member agencies. Achieved.    
5. Identify and address risks in financial institutions designated as systemically important.
Conduct ongoing risk analysis and monitoring of SIFIs to understand their structure, business activities and risk profiles, and their resolution and recovery capabilities.   Achieved.  
Complete, in collaboration with the Federal Reserve Board and in accordance with statutory and regulatory time frames, all required actions associated with the review of resolution plans submitted by financial companies subject to the requirements of Section 165(d) of the Dodd-Frank Act.   Achieved.  
Hold at least one meeting of the Systemic Resolution Advisory Committee to obtain feedback on resolving SIFIs.   Achieved.  
Complete, in collaboration with the Federal Reserve Board and in accordance with statutory and regulatory time frames, all required actions associated with the review of Section 165(d) resolution plans submitted under Title 1 of DFA.     Achieved.
Hold at least one meeting of the Systemic Resolution Advisory Committee to obtain feedback on resolving systemically important financial companies.     Achieved.
6. Implement strategies to promote enhanced cybersecurity within the banking industry.
In coordination with the FFIEC, implement recommendations to enhance the FDIC’s supervision of the IT risks at insured depository institutions and their technology service providers.   Achieved.  

 

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

Supervision Program Results (Continued)
Annual Performance Goals and Targets 2015 2014 2013
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.
Conduct all required examinations within the time frames established by FDIC policy. Achieved.    
Conduct 100 percent of required examinations within the time frames established by FDIC policy.   Substantially Achieved. Achieved.
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.   Achieved.
Conduct visits and/or follow-up examinations in accordance with established FDIC policies and 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.

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. Achieved. Achieved.
3. Promote economic inclusion and access to responsible financial services through supervisory, research, policy, and consumer/community affairs initiatives.
Revise, test, and administer the 2015 FDIC National Survey of Unbanked and Underbanked Households. Achieved.    
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.    

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.    
Publish the results of the 2013 FDIC National Survey of Unbanked and Underbanked Households (conducted jointly with the U.S. Census Bureau).   Achieved.  
Implement 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.   Achieved.  
Facilitate opportunities for banks and community stakeholders to address issues concerning access to financial services, community development, and financial education.   Achieved.  

Conduct the third biennial FDIC National Survey of Unbanked and Underbanked Households (conducted jointly with the U.S. Census Bureau).

    Achieved.
Initiate work on the Survey of Banks’ Efforts to Serve the Unbanked and Underbanked.     Deferred.

Implement the strategy outlined in the work plan approved by the Advisory Committee on Economic Inclusion to support the responsible use of technology to expand banking services to the unbanked.

    Achieved.
Strategic Goal: Large and complex financial institutions are resolvable in an orderly manner under bankruptcy.
1. Identify and address risks in large and complex financial institutions designated as systemically important.
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.    

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.    

 

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

Receivership Management Program Results
Annual Performance Goals and Targets 2015 2014 2013
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.
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. Achieved. Achieved.
3. Manage the receivership estate and its subsidiaries toward an orderly termination.
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. 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, make a decision to close or pursue professional liability claims within 18 months of the failure date of an insured depository institution. Achieved. Achieved. Achieved.
5. Ensure the FDIC’s operational readiness to resolve a large, complex financial institution using the orderly liquidation authority in Title II of the DFA
Update and refine firm-specific resolutions plans and strategies and develop operational procedures for the administration of a Title II receivership. Achieved.    
Prepare for an early 2016 meeting of the Systemic Resolution Advisory Committee to obtain feedback on resolving SIFIs. Achieved.    
Continue to deepen and strengthen bilateral working relationships with key foreign jurisdictions. Achieved.    

1Erroneously reported as “Achieved” in the 2013 Annual Report.

 

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