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 an aggregate net loss of $3.7 billion in the second quarter of 2009. Increased expenses for bad loans were chiefly responsible for the industrys loss. Quarterly earnings were also adversely affected by writedowns of asset-backed commercial paper, and by higher assessments for deposit insurance. Almost two out of every three institutions reported lower quarterly earnings than a year ago, and more than one in four reported a net loss for the quarter.
Insurance Fund Indicators
Estimated insured deposits (based on the basic FDIC insurance limit of $100,000) decreased by 0.3 percent in the second quarter of 2009. The Deposit Insurance Fund reserve ratio fell to 0.22 percent, and 24 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. As of June 30, 2009, more than 86 percent of FDIC-insured institutions have opted in to the Transaction Account Guarantee Program, and 8,038 eligible entities have elected the option to participate in the Debt Guarantee Program. Approximately $736 billion in non-interest-bearing transaction accounts was guaranteed as of June 30, 2009, and $339 billion in guaranteed senior unsecured debt, issued by 97 entities, was outstanding at the end of the second quarter.