• Table of Contents
  1. Chronological Overview
  2. Chapter 1: Pre-FDIC
  3. Chapter 2: 1933-1979
  4. Chapter 3: 1980
  5. Chapter 4: 1981
  6. Chapter 5: 1982
  7. Chapter 6: 1983
  8. Chapter 7: 1984
  9. Chapter 8: 1985
  10. Chapter 9: 1986
  11. Chapter 10: 1987
  12. Chapter 11: 1988
  13. Chapter 12: 1989
  14. Chapter 13: 1990
  15. Chapter 14: 1991
  16. Chapter 15: 1992
  17. Chapter 16: 1993
  18. Chapter 17: 1994
  19. Chapter 18: 1995
  20. Chapter 19: 1996
  21. Chapter 20: 1997
  22. Chapter 21: 1998
  23. Chapter 22: 1999
  24. Chapter 23: 2000
  25. Chapter 24: 2001
  26. Chapter 25: 2002
  27. Chapter 26: 2003
  28. Appendix

Managing the Crisis: The FDIC and RTC Experience — Guide to Chapters

Beginning with 1980, each year is presented in a similar format. Each of the chapter elements is discussed below. Unless otherwise noted, information was derived from the annual reports

Each chapter includes an “FDIC at a Glance” chart. It presents primary data elements of the year and the preceding year and shows the percentage changes between the years. A summary chart with information for all years 1980-2003 is shown below.

Source: FDIC, 1980 Annual Report and Reports from FDIC Division of Finance and FDIC Division of Research and Statistics.

A. Number of Bank Failures

This number represents the total number of banks that actually failed. Back to Table

B. Assistance to Open Banks

This number represents the number of banks that were provided financial assistance but were not actually closed and placed into receivership. Significant cases are discussed in the relevant years. Assistance to Open Banks includes assistance to commercial and mutual savings banks. Back to Table

C. Total Failed and Assisted Banks

This is the total of A. and B. Back to Table

D. Total Assets of Failed and Assisted Banks

Total assets is a universal measure of the size of financial institutions and indicates the relative size of the problems handled by the FDIC. Back to Table

E. Estimated Losses on Failed and Assisted Banks during the Year

This number represents the estimated net loss to the FDIC on the banks that failed in that year. The figure is determined by calculating actual disbursements and subtracting actual and estimated recoveries. This figure is routinely adjusted with updated information from new appraisals and asset sales, which ultimately affect the asset values and the projected recoveries. All estimates are based upon the latest data available and are as of December 31, 2003. For terminated receiverships, the loss figure listed represents the actual loss. This applies to all receiverships prior to 1988. Back to Table

F. Estimated Losses as a % of Total Assets

This number is roughly indicative of the FDIC’s efficiency in disposing of failing institutions and their assets, although differences in failed bank profiles, asset types, and economic conditions also affect the recovery rate. Back to Table

G. Assets in Liquidation

This number is the total of assets held by the FDIC for liquidation. It is a book value number only and does not indicate estimated asset values. Back to Table

H. FDIC Staffing

This number is the total of FDIC staff, including both permanent and temporary employees. Each chapter includes a graph indicating staffing trends and divisional totals for that particular year. Back to Table

I. Number of Problem Banks

This is the number of open commercial banks in each year which are given a composite CAMEL rating by bank examiners of “4” or “5.” The CAMEL rates each element of Capital, Assets, Management, Earnings, and Liquidity from “1” to “5,” with “1” being the best and “5” being the worst. A composite rating is then assigned, and banks in the two lowest categories are placed on the FDIC’s problem bank list. Back to Table

J. Bank Insurance Fund Balance

Through 1988, this is the amount of money in the deposit insurance fund. Beginning in 1989, it is the amount of money in the Bank Insurance Fund (BIF) only and does not include the Savings Association Insurance Fund (SAIF). Back to Table

K. Bank Insurance Fund Balance as a % of Insured Deposits

This number is roughly representative of the FDIC’s ability to pay insured deposits of failed banks. A coverage ratio of 1.25% is considered most appropriate. Back to Table

L. Savings Association Insurance Fund Balance

This number is the amount of money in the Savings Association deposit insurance fund. Back to Table

M. Savings Association Insurance Fund Balance as a % of Insured Deposits

This number is roughly representative of the FDIC’s ability to pay insured deposits of failed savings associations. A coverage ratio of 1.25% is considered most appropriate. Back to Table

Notable Events

Significant events that occurred during the year are reflected here.

Economic/Banking Conditions

Regional and national economic trends are detailed here. The state of the banking industry during the year is discussed here, including the number of failures, number of problem institutions, and number of newly chartered institutions. The following tables detail the number and total assets of all FDIC insured commercial and savings banks in the year. They also lists the average Return on Assets and Return on Equity per type of institution per year.

Open Financial Institutions Insured by FDIC 1980-1994

Source: Reports from FDIC Division of Research and Statistics.

Open Financial Institutions Insured by FDIC 1995-2003

Source: FDIC Quarterly Banking Profile.

Bank Failures and Assistance to Open Banks

This section provides information about the failed and assisted institutions in the year. Transaction types and significant resolutions are discussed where appropriate. The following table outlines the failures and assisted transactions by transaction type. It shows the number of transactions, the total assets, and the estimated loss by type. The expected loss on the failed institutions was last estimated on December 31, 2003.

Payments to Depositors and Other Creditors

This section contains information concerning the number of failing bank and assisted transactions by type of transaction since the FDIC began operations in 1934. Information detailing the amount of disbursements made by the FDIC and the recoveries effected by the FDIC since 1934 is also shown. The total amount of deposits and the number of deposit accounts are shown for the failures and assistances in the year.

Asset Disposition

Information about the FDIC’s assets in liquidation each year is located here. When applicable, information for the FSLIC Resolution Fund and the Savings Association Insurance Fund is detailed. Significant collection activity is noted in various years. The table below details the book value of assets in liquidation at the beginning of the year, assets acquired from failed institutions, principal collections, and the book value of assets in liquidation at the end of the year. The estimated value of the assets was obtained from the Division of Finance. The following chart is a graphical illustration of the asset mix.

Source: Reports from FDIC Division of Finance.

Insurance Fund and Staffing

This section details changes over the previous year in the deposit insurance fund and the staffing levels. Staffing levels are listed for the Division of Supervision, the Division of Liquidation, other FDIC divisions, and the Resolution Trust Corporation. As division names changed, the chart to the left of this paragraph was updated. The chart shows the five-year trend of the staffing levels for the Division of Supervision, the Division of Liquidation, other FDIC divisions, and the Resolution Trust Corporation.

Private Resolutions

When there were private resolutions involving individual state insurance funds, the information is provided here.

Thrifts

In the years prior to the Resolution Trust Corporation, information concerning the thrift industry is displayed under this heading.

Resolution Trust Corporation

Each chapter includes an “RTC at a Glance” chart. It presents primary data elements of the year and the preceding year, and shows the percentage changes between the years. A summary chart with information for all years 1989-1994 is shown below.

*Thrifts placed into the ARP program are included for clarity, although they were never placed into the conservatorship program. Back to Table

Source: RTC Annual Reports and Reports from FDIC Division of Research and Statistics.

A. Number of Conservatorships

This section recaps the number of thrift institutions at the beginning of the year; the number of thrifts added to the conservatorship program during the year; and the number of thrifts that were taken over but not placed into conservatorship. The result of the activity during the year yields the total number of thrifts taken over in the year. Back to Table

B. Total Assets at Takeover

This section recaps the total assets of the failing thrifts at the time of takeover whether they were placed into conservatorship or resolved through the ARP program. This section also details the total estimated losses on the thrifts that failed in that particular year. The estimated loss is determined by calculating actual disbursements and subtracting actual and estimated recoveries. This figure is routinely adjusted with updated information from new appraisals and asset sales, which ultimately affect the asset values and the project recoveries. the estimate of loss for all thrifts is derived from data obtained as of December 31, 1995. Back to Table

C. Assets in Liquidation

This section recaps the total dollar amount of assets in liquidation from both conservatorships and receiverships. The staffing number is also shown. Back to Table

Notable Events

Significant events that occurred in the year are reflected here.

S&L Resolutions

This section provides information concerning the S&L resolutions in the year. The following table outlines the S&L resolutions by transaction type. It shows the number of transactions, the total assets, and the estimated loss by type. The estimated loss is based on estimates as of December 31, 1995.

Source: Reports from FDIC Division of Research and Statistics.

The following table shows the Conservatorships and Receiverships at the beginning of the year and the changes throughout the year.

Source: RTC Annual Reports.

Payments to Depositors and Other Creditors

This section contains information concerning the number of thrift resolutions by type of transaction since the RTC began operations in 1989. The total amount of deposits and the number of deposit accounts are shown for the thrift resolutions in the year.

Asset Disposition

Information about the RTC’s assets in liquidation each year is located here. Where applicable, information concerning outside contracting is detailed. The table below shows the RTC’s assets in liquidation and the following chart shows the asset mix.