87

2016

BUDGET AND 

SPENDING

IV.
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2016

BUDGET AND SPENDING 89

FDIC OPERATING BUDGET

The FDIC segregates its operating budget and 

expenses into two discrete components: ongoing 

operations and receivership funding. The receivership 

funding component represents expenses resulting 

from financial institution failures and is, therefore, 

largely driven by external forces, while the ongoing 

operations component accounts for all other 

operating expenses and tends to be more controllable 

and estimable. FDIC operating expenses totaled 

$1.9 billion in 2016, including $1.7 billion in 

ongoing operations and $260 million in receivership 

funding. This represented approximately 93 percent 

of the approved budget for ongoing operations and 

65 percent of the approved budget for receivership 

funding for the year.3

The approved 2017 FDIC Operating Budget of 

approximately $2.2 billion is segregated into three 

components, consisting of $1.8 billion for ongoing 

operations, $300 million for receivership funding, 

and $37 million for the Office of Inspector General 

(OIG). The level of approved ongoing operations 

budget for 2017 is approximately $45 million 

(3 percent) higher than the 2016 ongoing operations 

budget excluding the OIG, while the approved 

receivership funding budget is $100 million 

(25 percent) lower than the 2016 receivership 

funding budget.

As in prior years, the 2017 budget was formulated 

primarily on the basis of an analysis of projected 

workload for each of the Corporation’s three major 

business lines and its program support functions. The 

most significant factor contributing to the decrease in 

the FDIC Operating Budget is the improving health 

of the industry and the resultant reduction in failure 

related workload. Although savings in this area are 

being realized, the 2017 receivership funding budget 

provides resources for contractor support as well as 

non-permanent staffing for DRR, the Legal Division, 

and other organizations should workload in these 

areas require an immediate response.

FDIC EXPENDITURES 2007–2016

Dollars in Millions

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$0

3

 The numbers in this paragraph will not agree with the DIF and FRF financial statements because of differences in how items 

are classified.
ANNUAL REPORT

90 BUDGET AND SPENDING

The FDIC’s Strategic Plan and Annual Performance 

Plan provide the basis for annual planning and 

budgeting for needed resources. The 2016 aggregate 

budget (for corporate, receivership, and investment 

spending) was $2.2 billion, while actual expenditures 

for the year were under $2.0 billion, about $0.1 

billion less than 2015 expenditures.

Over the past decade the FDIC’s expenditures have 

varied in response to workload. During the last 

several years, expenditures have fallen, largely due to 

decreasing resolution and receivership activity. To a 

lesser extent decreased expenses have resulted from 

supervision-related costs associated with the oversight 

of fewer troubled institutions. 

2016 BUDGET AND EXPENDITURES BY PROGRAM

(including Allocated Support)

Dollars in Millions

Receivership

Management

Program

Insurance

Program

Supervision

and Consumer

Protection 

Program

General and

Administrative

$1,200

Budget

$900

$600

$300

$0

Expenditures

2016 BUDGET AND EXPENDITURES 

BY PROGRAM

(Excluding Investments)

The FDIC budget for 2016 totaled $2.2 billion. 

Budget amounts were allocated as follows: $1.1 billion 

or 49 percent, to the Supervision and Consumer 

Protection program; $575 million or 26 percent, to 

the Receivership Management program; $331 million, 

or 15 percent, to the Insurance program; and $221 

million, or 10 percent, to Corporate General and 

Administrative expenditures.

Actual expenditures for the year totaled $1.9 

billion. Actual expenditures amounts were allocated 

as follows: $995 million, or 51 percent, to the 

Supervision and Consumer Protection program; 

$468 million, or 24 percent, to the Receivership 

Management program; $292 million, or 15 percent, 

to the Insurance program; and $195 million, or 10 

percent, to Corporate General and Administrative 

expenditures. 
2016

BUDGET AND SPENDING 91

INVESTMENT SPENDING

The FDIC instituted a separate Investment Budget 

in 2003 to provide enhanced governance of major 

multi-year development efforts. The FDIC has a 

disciplined process for reviewing proposed new 

investment projects and managing the construction 

and implementation of approved projects. Proposed 

IT projects are carefully reviewed to ensure that 

they are consistent with the Corporation’s enterprise 

architecture. The project approval and monitoring 

processes also enable the FDIC to be aware of risks 

to the major capital investment projects and facilitate 

appropriate, timely intervention to address these risks 

throughout the development process. An investment 

portfolio performance review is provided to the 

FDIC’s Board of Directors on a quarterly basis. 

From 2007-2016 investment spending totaled $130 

million, and is estimated at $11 million for 2017. 

INVESTMENT SPENDING 2007 - 2016

Dollars in Millions

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

$25

$15

$5

$10

$20

$30

$0
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