Department of the Treasury

Financial Stability Oversight 

Council

Congressional Budget 

Justification and Annual 

Performance Report and Plan

FY 2020
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Table of Contents

Section I – Budget Request............................................................................................................3

A – Mission Statement.................................................................................................................3

B – Summary of the Request .......................................................................................................3

1.1 – Resource Detail Table.........................................................................................................3

1.2 – Budget Adjustments Table..................................................................................................5

C – Vision, Priorities, and Context..............................................................................................5

D – Budget Increases and Decreases Description........................................................................5

1.3 – Operating Levels Table.......................................................................................................5

E – Appropriations Language and Explanation of Changes........................................................5

F – Legislative Proposals.............................................................................................................5

Section II – Annual Performance Plan and Report....................................................................6

A – Strategic Alignment ..............................................................................................................6

B – Financial Stability Oversight Council...................................................................................6

2.1.1 – Financial Stability Oversight Council Resources and Measures.....................................6

C – FDIC Reimbursement ...........................................................................................................6

2.1.2 – FDIC Reimbursement Resources and Measures..............................................................6
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Section I – Budget Request

A – Mission Statement

To identify risks to the financial stability of the United States, to promote market discipline, and 

to respond to emerging threats to the stability of the U.S. financial system.

B – Summary of the Request

The Financial Stability Oversight Council (FSOC or Council) is estimating a fiscal year 

(FY) 2020 funding level of $10.487 million, which is flat with its FY 2019 estimated funding 

level. This request includes $6.186 million for the FSOC Secretariat and the Office of the 

Independent Member with Insurance Expertise, and $4.301 million to reimburse the Federal 

Deposit Insurance Corporation (FDIC) for certain expenses as required by law. On March 6, 

2019, the Council approved a notice of proposed interpretive guidance and request for public 

comment regarding nonbank financial company determinations. The proposal includes changes 

to make FSOC decision-making procedures more transparent, efficient, and effective. The 

Budget also proposes to impose appropriate Congressional oversight of Council functions by 

subjecting its activities to the annual appropriations process beginning in FY 2021.

1.1 – Resource Detail Table

1) The FSOC and FDIC reimbursements are financed through assessments on certain bank holding companies and nonbank 

financial companies. See Treasury’s final rule and interim final rule governing the Assessments process: 

https://www.financialresearch.gov/strategy-budget/files/final_rule_interim_final_rule.pdf

2) The funding for the first six months of operating expenses and 12 months of capital expenses are reflected in the Unobligated 

Balances from Prior Years. This is because the first assessment covering the fiscal year beginning October 1 is collected on 

September 15 of the prior fiscal year. This makes it appear as though large amounts of unobligated balances went unused, when in 

fact very little, if any, of those balances were from under execution. 

C – Vision, Priorities, and Context

The Council is chaired by the Secretary of the Treasury and consists of 10 voting members and 

five nonvoting members who serve in an advisory capacity. The Council brings together the 

expertise of the federal financial regulators, an insurance expert appointed by the President, and 

state regulators. 

Dollars in Thousands

Financial Stability Oversight Council

Budgetary Resources

FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT

Revenue/Offsetting Collections

Assessments1 $6,742 $8,590 $8,147 ($443) -5%

Interest $112 $160 $171 $11 7%

Recovery of Prior Year Paid Obligations $3 $4 $4 $0 0%

Recovery of Prior Year Unpaid Obligations $851 $508 $467 ($41) -8%

Restoration of Sequestration Rescission $735 $466 $543 $77 17%

Unobligated Balances from Prior Years $8,882 $7,731 $6,429 ($1,302) -17%

Total Revenue/Offsetting Collections $17,325 $17,459 $15,761 ($1,698) -10%

Expenses/Obligations

FSOC 13 $4,966 18 $6,186 18 $6,186 0 $0 NA NA

FDIC 0 $4,162 0 $4,301 0 $4,301 0 $0 NA NA

Total Expenses/Obligations 13 $9,128 18 $10,487 18 $10,487 0 $0 NA NA

Sequestration Reduction ($466) ($543) $0 $543 

Net Results $7,731 $6,429 $5,274 ($1,155) -18%

FY 2018 FY 2019 FY 2020 FY 2019 to FY 2020

Actual Estimated Estimated $ Change % Change
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The Council’s three statutory purposes are to:

1) identify risks to the financial stability of the United States that could arise from the material 

financial distress or failure, or ongoing activities, of large, interconnected bank holding 

companies or nonbank financial companies, or that could arise outside the financial services 

marketplace;

2) promote market discipline, by eliminating expectations on the part of shareholders, creditors, 

and counterparties of such companies that the Government will shield them from losses in 

the event of failure; and

3) respond to emerging threats to the stability of the U.S. financial system.

The Council has a statutory duty to facilitate information sharing and coordination among the 

member agencies regarding domestic financial services policy development, rulemaking, 

examinations, reporting requirements, and enforcement actions. 

Over the next year, the Council will continue to: monitor the financial system for emerging risks; 

facilitate interagency cooperation to identify and analyze emerging threats; facilitate information 

sharing and interagency coordination with respect to various regulatory initiatives; and consider 

comments it receives on its notice of proposed interpretive guidance regarding nonbank financial 

company determinations. 

Over the last year, the Council continued to identify and monitor potential risks to U.S. financial 

stability; fulfilled its statutory requirements, including transmission of its eighth annual report to 

Congress; and served as a forum for coordination among member agencies. In FY 2018, the 

Council rescinded its one remaining nonbank financial company determination.

By law, the Council is required to convene no less than quarterly, but the Council has convened 

on a more frequent basis to share information on key financial developments, coordinate 

regulatory implementation, and monitor progress on recommendations from the Council’s annual 

reports. In FY 2018, the Council convened seven times. The Council will continue to remain 

focused on identifying near-term threats and addressing structural vulnerabilities in the financial 

system. Transparency into Council work has routinely been provided through an annual report 

to Congress, periodic Congressional testimony on Council activities and emerging threats to

financial stability, and regular communications with the public about Council activities and 

decisions.

The Council is an executive agency and is not an office or bureau of the Department of the 

Treasury (Treasury). However, by law, the Council’s expenses (and, indirectly, FDIC 

reimbursements) are considered expenses of the Office of Financial Research, an office within 

Treasury.

FDIC Reimbursement

By law, the Council’s expenses include reimbursement of certain reasonable implementation 

expenses incurred by the FDIC in implementing Orderly Liquidation Authority. The FDIC must 

periodically submit requests for reimbursement to the Chairperson of the Council, who shall 

arrange for prompt reimbursement to the FDIC. FDIC expenses are for rule writing and 

resolution planning.
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1.2 – Budget Adjustments Table

Dollars in Thousands

Financial Stability Oversight Council FTE Amount

FY 2019 Estimated 18 $11,054 

Changes to Base:

Program Decrease: 0 ($567)

Labor Adjustment 0 ($279)

Non-labor Adjustment 0 ($288)

Revised FY 2019 Estimate 18 $10,487 

Total FY 2020 Estimated 18 $10,487 

D – Budget Increases and Decreases Description

The FSOC does not anticipate any program changes in FY 2020.

1.2 – Operating Levels Table

Dollars in Thousands

1 Object Class 25.3 includes FDIC reimbursement.

E – Appropriations Language and Explanation of Changes

The FSOC receives no appropriations from Congress.

F – Legislative Proposals

The Budget proposes to impose appropriate Congressional oversight of Council functions by 

subjecting its activities to the annual appropriations process beginning in FY 2021.

Financial Stability Oversight Council FY 2018 FY 2019 FY 2020

Object Classification Actual Estimated Estimated

11.1 - Full-time permanent 1,773 2,165 2,165

11.3 - Other than full-time permanent 173 175 175

11.5 - Other personnel compensation 33 37 37

11.9 - Personnel Compensation (Total) 1,979 2,377 2,377

12.0 - Personnel benefits 630 739 739

Total Personnel and Compensation Benefits $2,609 $3,116 $3,116

21.0 - Travel and transportation of persons 33 55 55

25.1 - Advisory and assistance services 1,998 2,332 2,332

25.2 - Other services from non-Federal sources 14 17 17

25.3 - Other goods and services from Federal sources 4,162 4,635 4,635

25.7 - Operation and maintenance of equip 0 0 0

26.0 - Supplies and materials 156 179 179

31.0 - Equipment 141 153 153

32.0 - Land and structures 10 0 0

43.0 - Interest and dividends 5 0 0

Total Non-Personnel 6,519 7,371 7,371

New Budgetary Resources $9,128 $10,487 $10,487

FTE 13 18 18
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Section II – Annual Performance Plan and Report

A – Strategic Alignment

The FSOC supports the Department of the Treasury’s Strategic Plan for FY 2018-2022 as 

follows:

• Goal 1: Boost U.S. Economic Growth

o Objective 1.2 – Strong Economic Fundamental

• Goal 2: Promote Financial Stability

o Objective 2.4 – Financial Sector Critical Infrastructure & Cybersecurity

B – Financial Stability Oversight Council

($6,186,000 from Assessments): 

There are no measures specified for managing Council performance. The FSOC’s annual reports 

and other public documents, as well as individual Council member agencies’ performance 

documents, provide information to the public relevant to the Council’s performance. 

Information on the Council is provided on www.treasury.gov, www.fsoc.gov, and member 

agency websites to provide transparency and accountability.

2.1.1 – Financial Stability Oversight Council Resources and Measures

C – FDIC Reimbursement

($4,301,000 from Assessments): 

Certain FDIC expenses are treated as expenses of the Council. For additional detail, see above.

2.1.2 – FDIC Reimbursement Resources and Measures

Dollars in Thousands

FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019

Actual Actual Actual Actual Actual Estimated

Expenses/Obligations $7,660 $6,236 $7,157 $5,655 $4,966 $6,186

$7,660 $6,236 $7,157 $5,655 $4,966 $6,186

23 22 22 17 13 18

Budget Activity Total $6,186

 Resource Level FY 2020

Estimated

$6,186

FTE 18

Dollars in Thousands

FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019

Actual Actual Actual Actual Actual Estimated

Expenses/Obligations $11,592 $7,628 $6,571 $5,126 $4,162 $4,301

$11,592 $7,628 $6,571 $5,126 $4,162 $4,301

0 0 0 0 0 0

Budget Activity Total $4,301

 Resource Level FY 2020

Estimated

$4,301

FTE 0