The FDIC Quarterly provides a comprehensive summary of the most current financial results for the banking industry, along with feature articles. These articles range from timely analysis of economic and banking trends at the national and regional level that may affect the risk exposure of FDIC-insured institutions to research on issues affecting the banking system and the development of regulatory policy. The FDIC Quarterly brings together data and analysis that were previously available through three retired publications -- the FDIC Outlook, the FDIC Banking Review, and the FYI: An Update on Emerging Issues in Banking. Past issues of these publications are archived under their original publication names.
FDIC-insured institutions reported a net loss of $32.1 billion in the fourth quarter of 2008, a decline of $32.7 billion from the $575 million that the industry earned in the fourth quarter of 2007 and the first quarterly loss since 1990. Rising loan-loss provisions, large writedowns of goodwill and other assets, and sizable losses in trading accounts all contributed to the industrys net loss. More than two-thirds of all insured institutions were profitable in the fourth quarter, but their earnings were outweighed by large losses at a number of big banks.
Insurance Fund Indicators
Estimated insured deposits (based on the basic FDIC insurance limit of $100,000) increased by 4.6 percent in the fourth quarter. The Deposit Insurance Fund reserve ratio fell to 0.40 percent, and 12 FDIC-insured institutions failed during the quarter.
Temporary Liquidity Guarantee Program
The FDIC Board approved the Temporary Liquidity Guarantee Program (TLGP) in response to major disruptions in credit markets. The TLGP improves access to liquidity for participating institutions by fully guaranteeing non-interest-bearing transaction deposit accounts and by guaranteeing eligible senior unsecured debt. More than 85 percent of FDIC-insured institutions have opted in to the Transaction Account Guarantee Program, and more than 8,000 eligible entities have elected the option to participate in the Debt Guarantee Program. Over $680 billion in non-interest-bearing transaction accounts was guaranteed as of December 31, 2008, and $224 billion in guaranteed senior unsecured debt, issued by 64 entities, was outstanding at year-end.
Events in the U.S. and global financial markets are powerful drivers of the recession that began in 2007. However, this economic downturn is unfolding in unique ways across the various regional economies. The following series of articles takes a closer look at the distinct way that this recession is playing out in four major regions of the country. Printable Version - PDF 605k (PDF Help)
Recession Adds to Long-Term Manufacturing Challenges in the Industrial Midwest
By Patrick M. Dervin and John M. Anderlik - Printable Version - PDF 189k (PDF Help)
The Sand States: Anatomy of a Perfect Housing-Market Storm
By Shayna M. Olesiuk and Kathy R. Kalser - Printable Version - PDF 145k (PDF Help)
Financial Sector Woes Pressure the Northeast
By Robert M. DiChiara and Kathy R. Kalser - Printable Version - PDF 184k (PDF Help)
How Long Can Energy and Agriculture Boost the Nations Midsection?
By Adrian R. Sanchez and John M. Anderlik - Printable Version - PDF 254k (PDF Help)
Alternative Financial Services: A Primer
By Christine Bradley, Susan Burhouse, Heather Gratton, Rae-Ann Miller
Alternative financial services (AFS) is a term often used to describe the array of financial services offered by companies that are not federally insured banks and thrifts. It sometimes also refers to financial services that are offered through alternative channels, such as the Internet or mobile phones. This article provides an overview of AFS and a description of the key products and services in this sector. It is intended as a primer for banks and others who are interested in understanding the competitive landscape in the financial services industry and exploring suitable opportunities in the AFS sector. Printable Version - PDF 282k (PDF Help)