The Bank Insurance Fund (BIF) earned $1.4 billion in
1996, according to an FDIC management report on the
Corporation's unaudited financial statements. The Savings
Association Insurance Fund (SAIF) had net income of $5.5 billion
for the year, primarily resulting from a one-time special assessment
of $4.5 billion on SAIF members to fully capitalize the fund.
Both funds closed the year with record balances--the BIF
with $26.9 billion and the SAIF with $8.9 billion. The continuing
low numbers of bank and thrift failures contributed to the strong
results. Only five BIF-insured banks and one SAIF-insured thrift
were closed in 1996.
Revenue for the BIF totaled $1.7 billion for the year. The
fund earned $1.3 billion in interest on investments in U.S. Treasury
securities and received another $73 million in deposit insurance
The SAIF received $5.5 billion in revenue in 1996,
consisting primarily of $5.2 billion in deposit insurance
assessments and $254 million in interest on investments in U.S.
The former Resolution Trust Corporation's (RTC)
financial operations were merged into the FSLIC Resolution Fund
(FRF) on January 1, 1996. During the first full year after the RTC
went out of existence, former RTC assets in liquidation were
reduced by 43 percent, or $3.3 billion, to $4.4 billion by year-end.
Federal Financing Bank borrowings for the FRF (RTC) were
reduced by $5.9 billion to $4.6 billion. The FRF was established
in 1989 to assume the remaining assets and obligations of the
former Federal Savings and Loan Insurance Corporation (FSLIC).
The FDIC also provided information on its 1996
expenditures. The agency spent $1.7 billion in 1996, seven percent
below the amount budgeted for the year.
Congress created the Federal Deposit Insurance Corporation in 1933 to restore
public confidence in the nation's banking system. The FDIC insures deposits
at the nation's 11,452 banks and savings associations and it promotes the
safety and soundness of these institutions by identifying, monitoring and
addressing risks to which they are exposed.
FDIC press releases and other information are available on the Internet via
the World Wide Web at www.fdic.gov, and
may also be obtained through the
FDIC's Public Information Center (800-276-6003 or (703) 562-2200).