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 profit of $21.7 billion in the fourth quarter of 2010, a $23.5 billion improvement from the $1.8 billion net loss the industry reported in the fourth quarter of 2009. This is the sixth consecutive quarter that earnings registered a year-over-year increase. Almost two-thirds of all institutions (62 percent) reported improvements in their quarterly net income from a year ago. The average return on assets (ROA) rose to 0.65 percent, from negative 0.06 percent a year ago.
Insurance Fund Indicators
Estimated insured deposits (based on $250,000 coverage) increased by 14.7 percent during the fourth quarter of 2010. The Deposit Insurance Fund reserve ratio was -0.12 percent on December 31, 2010, up from -0.15 percent on September 30, 2010, and -0.39 percent one year earlier. Thirty FDIC-insured institutions failed during the quarter.
Temporary Liquidity Guarantee Program
As of December 31, 2010, approximately $114 billion in non-interest-bearing transaction accounts was guaranteed under the Transaction Account Guarantee Program, and $267 billion in senior unsecured debt, issued by 66 entities and guaranteed under the Debt Guarantee Program, was outstanding. Both TLGP programs have ended. All noninterest-bearing transaction deposit accounts are temporarily insured under the Dodd-Frank Wall Street Reform and Consumer Protection Act.
Feature Article:Microenterprise Development: A Primer
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This article begins with a background on small businesses, small business lending, and the challenges small companies face in the current economic environment. It then focuses on the poverty alleviation aspect of entrepreneurship through microenterprise developmenthelping a segment of underserved small business owners create or expand their business. The article describes the scope of microenterprise development and the benefits to small business owners and their communities and includes case studies of organizations that participate in microenterprise development activities. It also describes the benefits to banks that participate in these activities.