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 institutionsreported an aggregate profit of $18.0 billion in the first quarter of 2010, a $12.5 billion improvement from the $5.6 billion the industry earned in the first quarter of 2009, but still well below historical norms for quarterly profits. More than half of all institutions (52.2 percent) reported year-over-year improvements in their quarterly net income. Fewer than one in five institutions (18.7 percent) reported net losses for the quarter, compared to 22.3 percent a year earlier. The average return on assets (ROA) rose to 0.54 percent, from 0.16 percent a year ago. This is the highest quarterly ROA for the industry since the first quarter of 2008.
Insurance Fund Indicators
Estimated insured deposits (based on $250,000 coverage) increased 1.3 percent in the first quarter of 2010. The Deposit Insurance Fund reserve ratio rose 1 basis point during the quarter to -0.38 percent, and 41 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 March 31, 2010, approximately 80 percent of FDIC-insured institutions have opted in to the Transaction Account Guarantee Program, and 7,678 eligible entities elected the option to participate in the Debt Guarantee Program. Approximately $279 billion in non-interest-bearing transaction accounts was guaranteed as of March 31, 2010, and $305 billion in guaranteed senior unsecured debt, issued by 79 entities, was outstanding at the end of the first quarter. Issuance under the Debt Guarantee Program ended on October 31, 2009.
A Template for Success: The FDIC's Small-Dollar Loan Pilot Program
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The Federal Deposit Insurance Corporations two-year Small-Dollar Loan Pilot Program concluded in the fourth quarter of 2009. The pilot was a case study designed to illustrate how banks can profitably offer affordable small-dollar loans as an alternative to high-cost credit products such as payday loans and fee-based overdraft programs. This article summarizes the results of the pilot, outlines the lessons learned and the potential strategies for expanding the supply of affordable small-dollar loans, and highlights pilot bank successes through case studies.
A Guide to Processing Deposit Insurance Claims: A Cross-Country Perspective
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This article discusses the deposit insurance claims process, whereby insured depositors are reimbursed when a bank fails. The article reviews the role of deposit insurers in a bank failure as well as their responsibilities in the claims process. It also reviews the basic tools that deposit insurers need to satisfy the claims of insured depositors (and others) and the procedures commonly followed in the claims process. Finally, the article explores the claims process of deposit insurers in Canada, the Philippines, the Russian Federation, and the United States.