WASHINGTON – The Board of Directors of the Federal Deposit Insurance Corporation (FDIC) today approved a 2023 Operating Budget of $2.409 billion, a 6.5% increase over the previous year’s budget.
“The additional resources in this budget are targeted on the workforce of the FDIC to recruit, hire, and retain the diverse pool of highly qualified people the agency needs to carry out its mission, and on IT investments to meet the operational and information security needs of the FDIC,” said Acting Chairman Martin J. Gruenberg.
The FDIC recently reached agreement in principle with the FDIC’s employee union on a new three-year Compensation Agreement that will increase compensation to reflect the impact that higher inflation has had on current salaries. It will also help to maintain comparability of compensation for FDIC employees relative to other federal banking agencies consistent with the Financial Institutions Reform, Recovery, and Enforcement Act of 1989.
The budget also authorizes 220 new positions primarily to carry out the FDIC’s bank supervision and other core mission responsibilities. A number of factors are particularly impacting the need for additional safety and soundness and consumer compliance examiners, including the increasing size and complexity of the institutions the FDIC supervises, the downside risks to the banking system in the current uncertain economic environment, the large number of retirement-eligible examiners, and the time needed to develop new commissioned examiners.
Additionally, the budget continues the investments the FDIC has been making for a number of years to modernize and enhance the FDIC’s information technology infrastructure and protect the sensitive data that the FDIC maintains.
The budget also includes funding for a public information campaign on deposit insurance as part of the FDIC’s 90th anniversary next June. The campaign seeks to clarify claims made about deposit insurance in recent years regarding non-traditional assets. As Acting Chairman Gruenberg noted, “It is more important than ever that the American public understands clearly what is protected by deposit insurance.”
Acting Chairman Gruenberg added, “I would like to thank the FDIC staff for their collaborative work across the agency to formulate a thoughtful and forward-looking budget and staffing proposal for 2023. This proposed budget includes resources to address the immediate challenges facing the FDIC, as well as longer term investments for the future of the agency.”