1

Summary of 2003 Performance Results by Program

The FDIC successfully achieved 27 of the 30 annual performance targets 

established in its 2003 Annual Performance Plan (two performance targets 

were not met and one was not applicable due to Congress not enacting deposit

insurance reform during 2003). Key accomplishments by program are highlighted

below. There were no instances where 2003 performance had a material adverse

effect on successful achievement of the FDIC’s mission or its strategic goals

and objectives with respect to its major program responsibilities. In addition,

2003 performance results were considered in the development of the FDIC’s

2004 Annual Performance Goals. 

The Office of Inspector General (OIG) has shared its view of the most significant

challenges the Corporation is confronting and has acknowledged the numerous

actions underway to address these issues. (See Appendix C for a list of these

challenges.) Management is committed to addressing each of the issues 

identified by the OIG.

II. Performance

Results

Summary
27

Program Area Performance Results

Insurance ● Resolved three failed insured institutions, providing depositors with timely access to insured 

deposits in each case. For all of the failures, depositors had uninterrupted and continuous access 

to insured deposits as the deposits were assumed by an acquiring entity. 

● Secured approval of deposit insurance reform legislation by the House of Representatives. 

Although the full Senate failed to act on the legislation before adjournment, the Corporation 

will continue to pursue deposit insurance reform in the second session of the 108th Congress.

● Completed risk assessments for all large insured depository institutions and followed up on 

all identified concerns referred for examination or other supervisory action.

● Improved the accuracy and efficiency of off-site risk identification models.

● Published economic and banking information and analysis:

● Quarterly editions of FDIC Outlook

● Quarterly editions of the FDIC Banking Review

● Twelve FYI electronic bulletins

● Four editions of the FDIC Quarterly Banking Profile (QBP)

● Semiannual FDIC Report on Underwriting Practices

● Semiannual Report on Underwriting Practices by Region

● Quarterly editions of the FDIC State Profiles

● Quarterly editions of the Real Estate Data System

● Semiannual Survey of Real Estate Trends

Supervision and ● Conducted 2,421 safety and soundness examinations. This included all statutorily-required 

Consumer Protection safety and soundness examinations, except for a small number deferred due to pending mergers.

● Conducted 1,919 compliance and Community Reinvestment Act examinations in accordance 

with FDIC policy.

Receivership ● Contacted all known and qualified potential bidders in each of the three institution failures 

Management in 2003.

l ● Marketed 98 percent or more of marketable assets of two of the three failed financial institutions 

within 90-days of failure. (For the remaining institution, the 90-day time frame had not expired 

at year-end.)

● Terminated four receiverships.
2003 Budget and Expenditures by Program

The FDIC budget for 2003 totaled $1.113 billion. Excluding $132 million for

Corporate General and Administrative expenditures, budget amounts were 

allocated to corporate programs and related goals as follows: $174 million, 

or 16 percent, to the Insurance program; $578 million, or 52 percent, to the

Supervision and Consumer Protection program; and $229 million, or 21 percent,

to the Receivership Management program. 

Actual expenditures for the year totaled $1.035 billion. Excluding $126 million 

for Corporate General and Administrative expenditures, actual expenditures

were allocated to programs as follows: $110 million, or 11 percent, to the

Insurance program; $575 million, or 56 percent, to the Supervision and

Consumer Protection program; and $224 million, or 22 percent, to the

Receivership Management program. 

28

Expenditures

Budget

$ 600

500

400

300

200

100

0

Insurance Supervision and Receivership General 

Program Consumer Protection Management and

Program Program Administrative 

2003 Expenditures and Budget (Support Allocated) 

Dollars in Millions
29

Performance Results by Program and Strategic Goal

Insurance Program Results

Strategic Goal: Insured depositors are protected from loss without recourse to taxpayer funding.

Annual Performance Goal Indicator Target Results

1. Respond promptly to financial Number of business days after If the failure occurs on Achieved.

institution closings and emerging institution failure by which a Friday the target is one 

issues. depositors will have access business day.

to insured funds either through 

transfer of deposits to successor If the failure occurs on any Achieved.

insured depository institution other day of the week, the 

or depositor payout. target is two business days.

2. Identify and address risks to the Assess risks posed by large Assess risk in 100 percent Achieved.

insurance funds. insured depository institutions. of large insured depository

institutions and adopt 

appropriate strategies.

Identify and follow up on concerns Identify and follow up on Achieved.

referred for examination or other 100 percent of referrals.

action (i.e., contact the insured 

institutions or primary supervisor).

Disseminate data and analyses Analyses are included in Achieved.

on current issues and risks regular publications or as 

affecting the banking industry ad hoc reports on a timely 

to bankers, supervisors, basis.

stakeholders, and the public.

Conduct industry outreach Achieved.

aimed at the banking 

community and industry trade 

groups to discuss current 

trends and concerns and to 

inform bankers about available 

FDIC resources.

3. Maintain sufficient and reliable Maintain and improve the Update and expand data Achieved.

information on insured depository Research Information System availability in RIS.

institutions. (RIS), which serves as the 

foundation of most analysis and 

statistical reporting for the FDIC.

Develop a more efficient Determine Call Report Achieved.

approach to bank data collection Modernization system 

and management. development approach; 

prepare migration plan for the 

implementation of data editing, 

storage and distribution facility 

for Call Report data; complete 

reconciliation of bank structure

databases; and implement 

standard business rules and 

data definitions for Call Report 

information. 
Insurance Program Results (continued)

Strategic Goal: Insured depositors are protected from loss without recourse to taxpayer funding.

Annual Performance Goal Indicator Target Results

4. Maintain and improve the deposit Continue to pursue changes in Work with Congress to Not Achieved

insurance system. the deposit insurance system in develop and pass a reform (see pages

accordance with proposals package. 12 & 13.)

submitted to Congress in 2002.

Develop final pricing Achieved.

recommendations and 

implementation plans for 

inclusion in a notice-andcomment rulemaking during 

2003.

If deposit insurance reform Not 

is passed, implement Applicable.

legislation in a timely manner.

Develop and analyze baseline Achieved.

data of implemented

modification results.

Continue to identify and review Assess improvements to Achieved.

possible modifications to the Risk the objective screens for the

Related Premium System (RRPS). RRPS that identify financial 

institutions engaging in 

excessive risk taking, such 

as certain types of credit, 

market, and operational risk.

Make appropriate changes Review discrepancies between Achieved.

to the current methodology projected failed assets and 

for projecting losses in failing actual failed assets by applying

financial institutions and sophisticated analytical 

establishing related loss techniques to examine the 

reserves for the deposit effectiveness of the loss 

insurance funds. projection model and adjust 

the methodology for projecting

losses accordingly.

Perform comprehensive Achieved.

review of all aspects of

the reserving process and 

methodology and implement 

enhancements as necessary.

30
31

Insurance Program Results (continued)

Strategic Goal: Insured depositors are protected from loss without recourse to taxpayer funding.

Annual Performance Goal Indicator Target Results

Maintain fund adequacy. Set assessment rates to Achieved.

maintain the insurance funds 

at or above the designated 

reserve ratio, or to return them

to the designated reserve ratio

if they fall below it, as required 

by statue. If deposit insurance 

reform legislation becomes law 

in 2003, promulgate rules and 

regulations establishing criteria 

for replenishing the deposit 

insurance fund when it falls 

below the low end of the 

range.

Conduct a study on the Determine the implications of Achieved.

“Future of Banking.” major trends for the evolution 

of the industry, development 

of regulatory policy and 

management of the deposit 

insurance funds. 

Enhance FDIC’s ties to the Establish an FDIC Center Achieved.

academic community and for Financial Research.

upgrade and provide greater 

visibility to the Corporation’s 

research activities.

5. Provide educational information Enhance the existing Electronic Issue a new version of the Achieved.

to insured depository institutions Deposit Insurance Estimator EDIE (Banker version) that

and their customers to help them (EDIE) Banker version. accommodates corporate and

understand the rules for determining organization accounts as well 

the amount of insurance coverage as any changes to the deposit

on deposit accounts. insurance rules that may be 

adopted.
32

Supervision and Consumer Protection Program Results 

Strategic Goal: FDIC-supervised institutions are safe and sound.

Annual Performance Goal Indicator Target Results

1. Conduct on-site safety and soundness Conduct required examinations One hundred percent of Achieved.

examinations to assess an FDIC- in accordance with statue and required examinations are

supervised insured depository FDIC policy. conducted on time.

institution’s overall financial condition, 

management practices and polices, 

and compliance with applicable 

regulations.

2. Take prompt supervisory actions to The number of months between Follow-up examination Achieved.

address problems found during the last examination of a problem conducted within 12 months

FDIC examination of FDIC-supervised bank and follow-up examination. of completing the prior

institutions identified as problem examination.

insured depository institutions. 

Monitor FDIC-supervised insured 

depository institutions’ compliance 

with formal and informal enforcement 

actions.

Strategic Goal: Consumers’ rights are protected and FDIC-supervised institutions invest in their communities.

1. Provide effective outreach and Additions to the Money Smart By December 31, 2003, Achieved.

technical assistance on topics related Alliance and the number of cumulative totals of 400 

to CRA, fair lending, and community Money Smart curricula provided. Money Smart Alliance 

development. members and 40,000 

Money Smart curricula 

provided.

Outreach activities and technical Conduct or participate in 125 Achieved.

assistance. Money Smart events, technical

assistance efforts (examination 

support), or banker/community 

outreach activities related to 

CRA, fair lending, or community 

development.

2. Effectively meet the statutory mandate Timely responses to written Ninety percent of written Achieved.

to investigate and respond to complaints. complaints are responded 

consumer complaints about FDIC- to within time frames

supervised financial institutions. established by policy.

3. Conduct comprehensive and Conduct required examinations One hundred percent of Achieved.

compliance-only examinations in accordance with FDIC policy. required examinations are

in accordance with FDIC conducted within time frames

examination frequency policy. established by FDIC policy.
33

Supervision and Consumer Protection Program Results (continued)

Strategic Goal: Consumers’ rights are protected and FDIC-supervised institutions invest in their communities.

Annual Performance Goal Indicator Target Results

4. Take prompt supervisory actions and Timely follow-up examination A follow-up examination Achieved.

monitor all institutions rated “4” or “5” and related activity confirm or related activity is conducted

for compliance to address problems whether the institution is within 12 months from the

identified during compliance in compliance with the date of a formal enforcement

examinations. enforcement action. action.

Receivership Management Program Results 

Strategic Goal: Recovery to creditors of receiverships is achieved.

1. Market failing institutions to all known List of qualified and interested Contact all known qualified Achieved.

qualified and interested potential bidders. and interested bidders.

bidders.

2. Value, manage, and market assets of Failed institutions’ assets Eighty-five percent of book Achieved.

failed institutions and their subsidiaries marketed. value of a failed institution’s 

in a timely manner to maximize net marketable assets are 

return. marketed within 90 days 

of failure.

3. Manage the receivership estate and Timely termination of new Terminate 75 percent of Not Achieved 

its subsidiaries toward an orderly receiverships. receiverships managed through (see page 19).

termination. the Receivership Oversight 

Program within three years 

of the failure date.

4. Conduct investigations into all Percentage of investigated claim For 80 percent of all claim Achieved.

potential professional liability claim areas for which a decision has areas, a decision is made to

areas in all failed insured depository been made to close or pursue close or pursue the claim.

institutions, and decide to close the claim within 18 months

or pursue each claim as promptly after the failure date.

as possible, considering the size 

and complexity of the institution.
34

Multi-Year Performance Trend

Depositor Payouts in Instance of Failure

Annual Goal 2000 Results 2001 Results 2002 Results 2003 Results 2004 Goal

Insured deposits are transferred Timely payments Annual goal Annual goal Annual goal Annual goal

to successor insured depository made to all revised revised revised revised

institution or depositor payouts depositors of the (see below). (see below). (see below). (see below).

are begun within three days seven insured 

of insured depository institution depository 

failure. institutions that 

failed in 2000.

FDIC is prepared to deal with Annual goal was Timely payments Timely payments Timely payments The FDIC responds

all financial institution closings not established made to all made to all made to all promptly to

and emerging issues. in 2000. depositors of the depositors of the depositors of the financial institution

(Revised – 2001) four insured 11 insured three insured closings and

depository depository depository emerging issues.

institutions that institutions that institutions that

failed in 2001. failed in 2002. failed in 2003.

Legislation on Legislation on 

deposit insurance deposit insurance

reform was reform was passed

introduced in the in the House and 

House and the is pending in the 

Senate. Senate.

Risk Classifications

Maintain and improve the Reserve ratio Reserve ratio Reserve ratio Reserve ratio Maintain and

deposit insurance system. maintained at or maintained. FDIC maintained at or maintained at or improve the

above the statutory published its final above the statutory above the statutory deposit insurance

mandate of recommendations ratio of1.25 percent. ratio of 1.25 percent. system.

1.25 percent. for deposit Chairman testified Chairman testified

insurance reform. before the Senate before the Senate

Banking Committee Banking Committee

in support of deposit in support of deposit

insurance reform. insurance reform.

Risk Identification and Reporting

Identify and address risks Economic trends Developed several Significant progress Significant progress Identify and

to the insurance funds. and emerging risks approaches to credit made in improving made in improving address risks 

were identified, risk that will be the accuracy and the accuracy and to the insurance

monitored and incorporated into efficiency of off-site efficiency of off-site funds.

addressed through Virtual Supervisory risk identification risk identification

the publication of Information On the models. Risk models. Risk 

surveys, guidance Net system. Risk assessments of assessments of 

and reports, and assessments of all large insured all large insured

outreach programs. all large insured depository depository

depository institutions (LIDIs) institutions (LIDIs)

institutions (LIDIs) were completed were completed

were completed in compliance in compliance

in compliance with program with program

with program requirements. requirements.

requirements.
35

Safety and Soundness Examinations

Annual Goal 2000 Results 2001 Results 2002 Results 2003 Results 2004 Goal

Conduct on-site safety and Conducted 2,568 Conducted 2,575 Conducted 2,534 Conducted 2,421 Conduct on-site

soundness examinations to or 97 percent or 97 percent or 98 percent required safety safety and

assess an FDIC-supervised of required safety of required safety of required safety and soundness soundness

insured depository institution’s and soundness and soundness and soundness examinations examinations to

overall financial condition, examinations.●examinations.●examinations. in accordance assess an FDICmanagement practices and with FDIC policy. supervised insured

policies, and compliance with depository

applicable regulations. institution’s overall

financial condition, ●

Note: From 2000-2001, the totals management 

reflect examinations initiated during practices and 

the year. This will vary slightly from policies, and 

the chart on page 15, which displays compliance with 

examinations completed during applicable 

these years. regulations. 

Safety and Soundness Enforcement Actions

Take prompt supervisory actions On average, Sixty-seven Eighty-four Seventy-three Take prompt 

to address problems identified examination reports institutions institutions institutions and effective 

during the FDIC examination were processed designated as designated as designated as supervisory actions

of FDIC-supervised institutions and mailed to problem (composite problem (composite problem (composite to address 

identified as problem insured institutions within “4” or “5” rated). “4” or “5” rated). “4” or “5” rated). problems identified

depository institutions. Monitor 44 days of receipt Fifty-six were Forty-eight were Fifty-eight with total during the FDIC

FDIC-supervised insured in regional office. removed from removed from assetsof$6.98billion examination of

depository institutions’ Target is 45 days. problem status problem status were removed from FDIC-supervised

compliance with formal and and 76 added. and 63 added. problem status and institutions 

informal enforcement actions. 47 with total assets identified as

Evaluations changed of $4.99 billion were problem insured

to monitor added. Additionally, depository

migration of FDIC issued the institutions. Monitor

troubled banks. following formal FDIC-supervised

and informal insured depository

enforcement actions: institutions’ 

40Cease and Desist compliance with

Orders and 157 formal and informal

Memorandums of enforcement

Understanding. actions.

Compliance Examinations

Conduct comprehensive and Conducted 2,257 Conducted 2,179 Conducted 1,840 Conducted 1,919 Conduct

compliance-only examinations examinations. comprehensive, comprehensive, comprehensive, comprehensive 

in accordance with FDIC There were three compliance-only, compliance-only, compliance-only, and complianceexamination frequency policy. delinquent and CRA and CRA and CRA only, and CRA

examinations at examinations in examinations in examinations in examinations in

the end of 2000. accordance with accordance with accordance with accordance with

FDIC policy. FDIC policy. FDIC policy. FDIC examination

There were no There were no There were no frequency policy.

delinquencies delinquencies delinquencies

in 2001. in 2002. in 2003.
36

CRA Outreach

Annual Goal 2000 Results 2001 Results 2002 Results 2003 Results 2004 Goal

Effective outreach, technical One pilot forum Annual goal Annual goal Annual goal Annual goal

assistance and training are on financial literacy revised revised revised revised

provided on topics related to and predatory (see below). (see below). (see below). (see below).

the Community Reinvestment lending was held 

Act (CRA) and community in each region.

development. 

Provide effective outreach and Annual goal was Conducted 25 Money Smart The FDIC supplied Provide effective

technical assistance on topics not established Money Smart classes attended more than 111,000 outreach and

related to CRA, fair lending, in 2000. workshops with by approximately copies of Money technical 

and community development. over 600 2,800 participants. Smart curricula assistance on 

(Revised – 2001) participants. to organizations. topics related

The FDIC initiated to CRA, fair

65 public outreach lending, and

initiatives, community

111 Community development.

Development 

activities, and

67 Technical 

Assistance 

activities.

Compliance Enforcement Actions

Prompt supervisory actions For institutions on Six of seven Eight of nine The only “4” Prompt and

are taken and monitored on all average rated a institutions had institutions rated institution effective 

institutions rated “4” or “5” composite “4” either been entered into a entered into supervisory

for compliance. or “5,” the FDIC examined in Memorandum of a Memorandum actions are taken

conducted all the preceding Understanding of Understanding and monitored on 

follow-up 12 months or (MOU) with the (MOU) with the all institutions

examinations within were still within FDIC and the ninth FDIC. rated “4” or “5”

the targeted time the 12 month time was in the process for compliance.

frame of 12 months frame between of reviewing the

from the issuance examinations. One recommended

date of a formal institution was MOU at year-end.

enforcement action. pending resolution

for safety and 

soundness reasons, 

and the compliance

examination was 

deferred pending 

resolution.
37

Consumer Complaints and Inquiries

Annual Goal 2000 Results 2001 Results 2002 Results 2003 Results 2004 Goal

Effectively respond to written One hundred FDIC sent 612 Annual goal Annual goal Annual goal

complaints and inquires related percent of the survey cards to revised revised revised

to deposit insurance and FDIC’s responses consumers and (see below). (see below). (see below).

consumer protection laws. to the 6,736 written bankers who 

complaints and contacted the

inquiries received Washington Office

were made within concerning inquiries

targeted average and complaints. 

turnaround time Eighty four 

frames. (14 percent) of the

cards were returned

to the FDIC. Sixtytwo percent of the

responses rated the

FDIC as “excellent” 

in timeliness of 

response.

Meet the statutory mandate Annual goal was Annual goal was FDIC received FDIC received Effectively meet

to investigate and respond not established not established 8,368 consumer 8,010 consumer the statutory

to consumer complaints in 2000. in 2001. complaints, closing complaints, closing mandate 

about FDIC-supervised 95 percent of them. 99 percent of them. to investigate 

financial institutions. Of the complaints Of the complaints and respond 

(Revised – 2002) closed, 94 percent closed, 94 percent to consumer 

were closed within were closed within complaints about 

policy time frames. policy time frames. FDIC-supervised

financial institutions.

Asset Management

Market 80 percent of a failed Ninety-five percent Annual goal Annual goal Annual goal Annual goal

institution’s assets to franchise of failed institutions’ revised revised revised revised

and nonfranchise investors assets were (see below). (see below). (see below). (see below).

within 90 days of resolution. marketed within 

90 days, thus

exceeding the target

of 80 percent.

Value, manage, and market Annual goal was For three For all 11 For all three Value, manage,

assets of the failed institutions not established institutions that institutions that institutions that and market assets 

and their subsidiaries in in 2000. failed, the FDIC failed at least failed, at least of the failed

a timely manner to maximize marketed 100 per- 87 percent of all 98 percent of all institutions and 

net return. (Revised – 2001) cent of the market- marketable assets marketable assets their subsidiaries

able assets. The were marketed were marketed in a timely manner

remaining institution within the 90-day within the 90 day to maximize

was placed into time frame, thus time frame, thus net return.

conservatorship. exceeding the exceeding the

Loanpools,servicing target of 85 percent. target of 85 percent.

operations, and 

residuals that 

totaled in excess 

of the 80 percent 

target were 

marketed within the 

90-day time frame.
38

Least-Cost Resolution

Annual Goal 2000 Results 2001 Results 2002 Results 2003 Results 2004 Goal

Market to all known qualified There were seven There were four There were 11 There were three Market to all 

and interested potential failures in 2000. failures in 2001. failures in 2002. failures in 2003. known qualified 

assuming institutions. One hundred One hundred One hundred One hundred and interested

percent of the percent of the percent of the percent of the potential

qualified potential qualified potential qualified potential qualified bidders assuming

bidders were bidders were bidders were were contacted. institutions.

contacted. contacted. contacted.

Professional Liability Claims

Investigations are conducted A decision to close Annual goal Annual goal Annual goal Annual goal

into all potential professional or pursue each revised revised revised revised

liability claim areas in all failed claim was made (see below). (see below). (see below). (see below).

insured depository institutions within 18 months

and a decision to close or after the failure date

pursue each claim will be for 100 percent

made within 18 months after of all investigations.

the failure date in 80 percent 

of all investigations.

Conduct investigations into all Annual goal was Five of nine Two of six Four of ten Conduct 

potential professional liability not established institutions that institutions that institutions that investigations of 

claim areas in all failed insured in 2000. reached the reached the reached the all potential

depository institutions. Decide 18-month 18-month milestone 18-month milestone professional

to close or pursue each claim milestone had during 2002 had during 2003 had liability claim areas

as promptly as possible, 100 percent of 100 percent of 100 percent of in all failed insured

considering the size and professional liability professional liability professional liability depository

complexity of the institution. investigations investigations investigations institutions. Decide

(Revised – 2001) completed. completed. The completed. to close or pursue

other four The other six each claim as

institutions had at institutions had at promptly as 

least 80 percent least 80 percent possible, 

of professional of professional considering the 

liability liability size and

investigations investigations complexity of

completed, completed, the institution.

meeting meeting

the goal of the goal of

80 percent. 80 percent.
39

Receivership Terminations

Annual Goal 2000 Results 2001 Results 2002 Results 2003 Results 2004 Goal

Achieve a 35 percent reduction One hundred fifty-six Annual goal Annual goal Annual goal Annual goal

in the number of active receiverships were revised revised revised revised

receiverships in 2000. terminated, thus (see below). (see below). (see below). (see below).

achieving the goal 

of 156.

Manage the receivership estate Annual goal was Fifty-two out of For the eight For the seven Manage the

and its subsidiaries toward an not established the 76 targeted failures from 1999 failures that receivership

orderly termination. in 2000. receiverships were that matured in occurred during estate and its

(Revised – 2001) terminated in 2001. 2002, the FDIC 2000 that matured subsidiaries 

In mid-2001, the terminated six in 2003, the FDIC toward an 

target of 76 receiverships, terminated four orderly

terminations was meeting the target receiverships, termination.

revised to 36. The to terminate below the target 

pace of termination 75 percent within to terminate

was slowed by three years of 75 percent within

impediments that failure. three years of

represented material failure.

financial or legal 

risks to the FDIC.
40

Program Evaluation

During 2003, the FDIC completed evaluations of programs designed to achieve the strategic 

objectives set forth in the Insurance Program area of the FDIC’s 2001-2006 Strategic Plan.

The program evaluation of each strategic objective included a list of issues to be evaluated, 

background context of the evaluation, analysis of programs and actions to achieve the objective, 

evaluation methodology, and findings. The following section highlights the issues evaluated 

and summarizes the results of this evaluation. 

Strategic Customers of failed insured depository institutions have timely access to insured funds 

Objective and financial services.

Issues evaluated Do customers have timely access to insured funds?

Do customers of failed insured depository institutions have timely access to financial services?

Findings The FDIC has appropriate procedures in place to ensure that customers have timely access 

to insured funds and financial services. If an institution failure occurs on a Friday, FDIC’s target 

for access to insured funds by customers is one business day. If a failure occurs on any other 

day of the week, the target is two business days. When an institution fails, the FDIC fulfills 

its role as insurer by either facilitating the transfer of the institution’s insured deposits to an 

assuming institution or by paying insured depositors directly. If an institution failure occurs, 

the FDIC ensures its customers timely access to financial services, such as automated teller 

machines, safe deposit boxes and wire services. From January 2003 to December 2003, there 

were three bank failures. In all cases, an acquiring institution assumed insured deposits and 

re-opened for business the Monday morning immediately following the Friday failure.

The FDIC has a wide array of materials available to provide timely financial information to 

customers of failed institutions. These materials are available through the FDIC Web site 

(www.fdic.gov) with an Electronic Deposit Insurance Estimator (EDIE) and the FDIC’s toll free 

number (877-ASK-FDIC). The FDIC’s diligence in promoting financial education is also evident 

in its outreach seminars, workshops, and its award-winning Money Smart program. All of these 

initiatives provide methods for consumers to have timely access to financial education.

Strategic The FDIC promptly identifies and responds to potential risks to the 

Objective insurance funds.

Issues evaluated How does the FDIC identify and respond to potential risks to the insurance funds?

Findings The FDIC monitors the condition of the financial services industry and projects insured financial 

institution failures as well as associated resolution costs. Risks posed by large insured institutions

are assessed through two supervisory programs: the Dedicated Examiner program, which covers 

the largest eight depository institutions, and the Large Insured Depository Institution (LIDI) 

program, which covers remaining institutions with over $10 billion in assets. The results of these 

risk assessments are communicated to FDIC regional and divisional management. The Risk 

Analysis Center receives the summary data and analysis results of the LIDI process, which 

is then provided to the Financial Risk and National Risk Committees for their purposes. 

Also, the FDIC identifies and follows up on concerns referred for examination or other action 

through an Off-site Review Program. 

The FDIC disseminates data and analyses on current issues and risks affecting the banking 

industry to bankers, supervisors, stakeholders and the public. Analyses are included in regular 

publications available on the FDIC’s Web site.

★

★

★
41

Program Evaluation (continued)

Strategic The deposit insurance funds and system remain viable.

Objective

Issues evaluated What actions has the FDIC taken to improve the deposit insurance system?

Findings The FDIC continues to pursue enactment of deposit insurance reform legislation. Under the 

reform proposals, the BIF and SAIF will be merged, and the FDIC’s ability to manage the 

combined fund and price premiums properly to reflect risk will improve.

During 2003, the FDIC developed a study on the future of banking. The study focused on 

underlying trends in the economy and the banking industry, and their implications for different 

sectors of the industry and for bank regulators in the future.

The FDIC established a Center for Financial Research (CFR) to encourage and support innovative 

research on topics that are important to the FDIC’s role as deposit insurer and bank supervisor. 

The CFR will explore key developments affecting the banking industry, risk measurement and 

management methods, regulatory policy and related topics of interest to the FDIC and the larger 

financial community.

Copies of the complete Insurance Program Evaluation Report may be obtained from: 

The FDIC Public Information Center 

801 17th Street, NW 

Room 100 

Washington, DC 20434 

Copies may also be requested by: 

telephone: 202-416-6940, 

fax: 202-416-2076, or 

e-mail: publicinfo@fdic.gov.