MESSAGE FROM THE CHAIRMAN

FEDERAL DEPOSIT INSURANCE CORPORATION ANNUAL REPORT 2022 5 

For nearly 90 years, the FDIC has carried out 

its mission of maintaining public confidence 

and stability in the U.S. financial system. 

This mission took on heightened importance 

during the COVID-19 pandemic. The 

publication of this report marks three years 

since the pandemic’s onset. The continued 

challenges and uncertainties resulting from 

the pandemic through 2022 have impacted 

the banking system, consumers, and 

businesses large and small. 

Despite the persistent challenges, the 

FDIC workforce has continued to carry out 

its mission-essential functions: insuring 

deposits; supervising and examining 

financial institutions for safety, soundness, 

and consumer protection; making large 

firms resolvable; and managing failed 

bank receiverships.

The nation’s banks also have remained resilient, which has allowed for continued support for 

individuals and businesses. 

The economic environment is now changing. Inflationary pressures, rising interest rates, 

slowing economic growth, and geopolitical events create a very uncertain economic outlook 

with significant downside risks to the banking industry. These downside risks have been, and 

will continue to be, a focus of the FDIC’s supervisory attention.

In addition, the FDIC has pursued several key policy priorities over the past year, including 

strengthening the Community Reinvestment Act (CRA), reviewing the bank merger process, 

addressing the financial risks to the banking system resulting from climate change, evaluating 

and responding to the risks of crypto-assets, and finalizing the Basel III regulatory capital 

framework for large banking organizations. 

Other areas of continued focus include the FDIC’s efforts to support Minority Depository 

Institutions (MDIs) and Community Development Financial Institutions (CDFIs), promote 

a diverse and inclusive workplace at the FDIC, strengthen cybersecurity and information 

security within the banking industry, and manage the FDIC’s return to in-person bank 

examinations and other in-person activities at the FDIC.

MESSAGE FROM THE CHAIRMAN
MESSAGE FROM THE CHAIRMAN

FEDERAL DEPOSIT INSURANCE CORPORATION ANNUAL REPORT 2022 6 

Following is an overview of the FDIC’s progress in these areas over the past year, as well as the 

current economic and financial outlook, and the FDIC’s operational status.

THE CURRENT OUTLOOK 

At the end of September 2022, the FDIC insured deposits of $9.9 trillion in approximately 865 

million accounts at 4,755 institutions, supervised 2,765 institutions, and managed 156 active 

receiverships with total assets of nearly $1.1 billion.

The banking industry reported generally positive results in 2022 amid continued economic 

uncertainty. Loan growth strengthened, net interest income grew, and most asset quality 

measures improved. Further, the industry remains well-capitalized and highly liquid. 

Fourteen new banks opened through October 2022, including the first mutual bank in 50 

years, and there has not been a bank failure since October 2020. 

At the end of the third quarter, the banking industry reported an increase in net income that 

more than offset an increase in provision expenses—the amount set aside by institutions to 

protect against future credit losses. However, rising interest rates have resulted in unrealized 

losses on investment securities held on bank balance sheets, and may erode the value of real 

estate and other assets, and affect borrowers’ ability to repay loans. 

The FDIC will continue to focus its attention on the significant downside risks the industry 

faces, including the effects of inflation, rising interest rates, slowing economic growth, and 

continuing geopolitical uncertainty. Taken together, these risks have the potential to reduce 

profitability, weaken credit quality and capital, and limit loan growth in coming quarters. 

MANAGING THE DEPOSIT INSURANCE FUND

The pandemic and the government’s response to it also affected the Deposit Insurance Fund 

(DIF). Monetary policy actions, direct government assistance to consumers and businesses, 

and an overall reduction in consumer spending due to the COVID-19 pandemic resulted in an 

unprecedented inflow of more than $1 trillion in estimated insured deposits in the first half of 

2020. As a result, the reserve ratio of the DIF—the DIF balance as a percentage of the banking 

industry’s estimated insured deposits—declined below the statutory minimum, and as of June 

30, 2020, was at 1.30 percent. Insured deposits continued to grow—at times at unprecedented 

levels, which has caused the reserve ratio to remain low. As of the third quarter of 2022, the 

reserve ratio was 1.26 percent, well below the statutory minimum of 1.35 percent.

As required by the Federal Deposit Insurance Act, the FDIC Board adopted a new Restoration 

Plan in September 2020 to restore the DIF to at least 1.35 percent by September 30, 2028. To 

improve the likelihood that the reserve ratio will reach the statutory minimum within that 

timeframe, the FDIC Board amended the Restoration Plan in June 2022 to incorporate an 
MESSAGE FROM THE CHAIRMAN

FEDERAL DEPOSIT INSURANCE CORPORATION ANNUAL REPORT 2022 7 

increase in assessment rate schedules of 2 basis points for all insured depository institutions. 

The new schedules are effective January 1, 2023. They are expected to have a very small 

effect on industry income and no impact on lending or credit availability.

As a result of the downside risks to the banking industry, the FDIC concluded it was better to 

take prudent but modest action now, rather than to delay and potentially have to consider a 

larger increase in assessments at a later time when banking and economic conditions may be 

less favorable. 

STRENGTHENING THE COMMUNITY 

REINVESTMENT ACT 

In 1977, the CRA was enacted based on a simple, but powerful premise - that banks have an 

affirmative obligation to serve the local communities in which they do business. That premise 

remains compelling 45 years later, yet the rule implementing the CRA has not undergone a 

major revision since 1995, despite the banking industry’s dramatic evolution over that time. 

This year, the FDIC partnered with the Board of Governors of the Federal Reserve System 

(FRB) and Office of the Comptroller of the Currency (OCC) on a Notice of Proposed Rulemaking 

(NPR) to adapt the CRA to that evolution and to strengthen and enhance its effectiveness in 

achieving its core mission.

The NPR would significantly expand the scope and rigor of the CRA and assure its continued 

relevance. Among other things, the NPR would:

 Establish new retail lending assessment areas to allow for CRA evaluation in 

communities where a bank may be engaging in significant lending activity but 

where the bank does not have a branch;

 Incorporate detailed metrics on bank lending activity. This provides an improved 

line of sight into bank lending and allows for the consideration of higher standards 

for bank lending performance under CRA. The objective here is to provide an 

incentive for increased bank lending to underserved communities. It also would 

allow for greater transparency and certainty for banking institutions in meeting 

their CRA responsibilities; and 

 Raise the thresholds for “Small” and “Intermediate” banks, which will maintain or 

reduce requirements for hundreds of community banks with respect to their CRA 

requirements.

In addition, the proposed rule would provide greater transparency on lending to communities 

of color and enhanced incentives for banks to collaborate with MDIs and CDFIs, invest in 

disaster preparedness and climate resilience in low- and moderate-income neighborhoods, 

and provide lending, investment, and services in rural communities and Native lands.
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FEDERAL DEPOSIT INSURANCE CORPORATION ANNUAL REPORT 2022 8 

Taken together, the NPR represents a major revision of the CRA intended to strengthen its 

impact and increase its transparency and predictability. The FDIC, along with the FRB and 

OCC, continue their review of approximately one thousand unique comments as they consider 

possible changes to the NPR in developing a final rule. 

REVIEWING THE BANK MERGER PROCESS

The FDIC also identified the regulatory framework for implementing the Bank Merger Act of 

1960 as timely for review in 2022. 

The Bank Merger Act established a framework that generally requires approval by the FRB, 

OCC, or FDIC, as appropriate, for bank mergers after consideration of certain specific statutory 

factors. FDIC approval is also required for a bank merger with a non-insured entity. 

Since the process was last reviewed 25 years ago, a great deal of consolidation has taken 

place in the banking sector, facilitated in part by mergers and acquisitions. The prospect for 

continued consolidation among both large and small banks remains significant. As a result, a 

review of the merger process is both timely and appropriate. 

In March 2022, the FDIC issued a Request for Information (RFI) and Comment on Rules, 

Regulations, Guidance, and Statements of Policy Regarding Bank Merger Transactions. The 

RFI requested comment on the four statutory factors required to be considered under the 

Bank Merger Act: competition, prudential risk, the convenience and needs of the communities 

affected, and financial stability. The FDIC also formed an interdivisional working group to 

develop draft revisions to the Statement of Policy on Bank Merger Transactions to address 

legislative and other developments since the document was last updated in 1998, and make 

other content and structural enhancements. 

The FDIC is considering updates to the Statement of Policy in light of the comments received 

in response to the RFI, and continues to collaborate with the other banking agencies and the 

Department of Justice on an interagency review of the bank merger application process.

ADDRESSING FINANCIAL RISKS 

POSED BY CLIMATE CHANGE

There is broad consensus among financial regulatory bodies, both domestically and abroad, 

that the effects of climate change and the transition to reduced reliance on carbon-emitting 

sources of energy present unique and significant economic and financial risks, and, therefore, 

an emerging risk to the financial system and the safety and soundness of financial institutions. 

Understanding and addressing the financial risks that climate change may pose to the 

banking system, and the extent to which those risks impact the FDIC’s core mission and 

responsibilities, are a top priority of the FDIC. 
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FEDERAL DEPOSIT INSURANCE CORPORATION ANNUAL REPORT 2022 9 

While the banking industry has always contended with severe weather events and, thus far, 

has handled these events well, changing climate conditions are producing disturbing trends, 

including rising sea levels, increases in the frequency and severity of extreme weather events, 

and other natural disasters. These trends challenge the future resiliency of the financial 

system and banking industry and, in some instances, may pose safety and soundness risks to 

individual banks. The goal of the FDIC’s climate-related financial risk work is to ensure that the 

financial system remains resilient despite these rising risks. 

To that end, in March 2022, the FDIC Board approved a proposed Statement of Principles for 

Climate-Related Financial Risk Management for Large Financial Institutions that provides a 

high-level framework for the safe and sound management of exposures to climate-related 

financial risks for large financial institutions. 

The FDIC does not make climate policy and does not determine firms or business sectors 

with which financial institutions should do business. However, the FDIC does want financial 

institutions to fully consider climate-related financial risks—as they do all other risks—

and continue to take a risk-based approach in assessing individual credit and investment 

decisions. 

While the FDIC remains in the early stages of addressing climate-related financial risk, 

regulators need to work with the banking industry now to support financial institutions as 

they develop plans to identify, monitor, and manage the financial risks posed by climate 

change. This should be done in a manner that is flexible enough to allow for change as 

knowledge is gained, data is developed, and new methodologies and tools are explored. 

Importantly, the FDIC will continue to encourage financial institutions to consider climaterelated financial risks in a manner that allows banks to prudently meet the financial services 

needs of their communities. 

PROVIDING REGULATORY RELIEF 

IN DISASTER AREAS

In 2022, the FDIC provided flexibility to financial institutions in 14 states and territories, 

where communities were affected by severe storms, flooding, tornadoes, wildfires, and other 

disasters. The FDIC supported financial institutions’ efforts to meet customers’ cash and 

financial needs by providing flexibility on appraisal requirements, lending and credit policies, 

and more. As these areas continue to recover, the FDIC encourages depository institutions to 

consider all reasonable and prudent steps to assist their customers, consistent with safe-andsound banking practices.
MESSAGE FROM THE CHAIRMAN

FEDERAL DEPOSIT INSURANCE CORPORATION ANNUAL REPORT 2022 10 

EVALUATING AND ADDRESSING CRYPTOASSET RISKS TO THE BANKING SYSTEM

Recent growth in the crypto-asset industry has triggered increasing interest on the part of 

some banks to engage in crypto-asset-related activities. The risks associated with these 

activities are novel and complex, and may involve safety and soundness, consumer protection, 

anti-money laundering and the Bank Secrecy Act, and potentially financial stability issues. As 

a result, the FDIC has taken a deliberate and thoughtful approach to supervision in this area. 

In April 2022, the FDIC issued a Financial Institution Letter, asking supervised banks to notify 

the FDIC if they are engaging in, or planning to engage in, crypto-asset-related activities. If 

so, the FDIC asked them to provide enough detail to allow the agency to work with them to 

assess the risk and the appropriateness of their proposed governance and risk management 

processes. This approach allows the FDIC to better understand the activity and provide the 

institution with case-specific supervisory feedback. The other federal banking agencies are 

taking a similar approach. 

Bankruptcies and other disruption in the crypto-asset industry in 2022 highlighted the risks of 

these activities as well as consumer confusion regarding deposit insurance. For that reason, 

the FDIC reminded consumers and insured institutions of the need to be aware of how FDIC 

insurance operates with respect to these assets, as well as reiterated the need for insured 

institutions to assess, manage, and control risks arising from third-party relationships with 

crypto companies. 

If a third party makes misrepresentations about the nature and scope of deposit insurance, it 

can lead to significant risks for banks. In July, the FDIC issued an advisory reminding insured 

banks of the risks that could arise due to misrepresentations of deposit insurance by cryptoasset companies. The FDIC also issued cease and desist letters to five crypto-asset companies 

for misleading statements regarding deposit insurance. In December, the FDIC Board adopted 

a notice of proposed rulemaking seeking comment on a number of proposed changes to 

the FDIC rules governing advertising, use of the FDIC logo, and misrepresentation of deposit 

insurance coverage. 

The FDIC will continue to work with its supervised banks to ensure that any crypto-assetrelated activities that they engage in are permissible banking activities that can be conducted 

in a safe and sound manner and in compliance with existing laws and regulations, including 

those related to consumer protection and anti-money laundering. In addition, the FDIC 

will continue to collaborate with its fellow banking agencies to better understand the risks 

associated with these products and activities and, as appropriate, expects to provide broader 

industry guidance on an interagency basis.
MESSAGE FROM THE CHAIRMAN

FEDERAL DEPOSIT INSURANCE CORPORATION ANNUAL REPORT 2022 11 

FINALIZING THE BASEL III CAPITAL RULES

The Basel Committee on Banking Supervision reached a final agreement on modifications to 

the Basel III international regulatory framework in December 2017. This final agreement would 

strengthen the regulatory framework for large banking organizations by strengthening capital 

requirements for market risk exposures, improving the capital requirement for financial 

derivatives, and simplifying the measurement of operational risk for regulatory capital 

purposes. 

Strong capital requirements have proven to be a critical element of the bank regulatory 

framework, allowing the banking industry during times of economic stress to serve as a source 

of strength for the U.S. economy and to lend to creditworthy households and businesses. 

Implementing the final agreement for large banking organizations is a priority for the federal 

banking agencies. The FDIC will continue to work with its fellow banking agencies to develop a 

proposed rulemaking that would seek comment on the implementation of the revised Basel III 

standards in the United States. 

EXPANDING ACCESS TO BANKING SERVICES

Expanding access to mainstream banking services helps strengthen confidence in the nation’s 

financial system—the FDIC’s core mission. In October, the FDIC published the results of its 

most recent National Survey of Unbanked and Underbanked Households, which shows that, 

despite the economic challenges posed by the COVID-19 global pandemic, nearly 96 percent of 

U.S. households were banked in 2021. The survey also found that an estimated 4.5 percent of 

households lacked a bank or credit union account, representing the lowest national unbanked 

rate since the survey began in 2009.

Approximately 1.2 million households became banked since 2019 and nearly half of these 

households that received government payments said these payments contributed to their 

decision to open an account. This data demonstrates that safe and affordable bank accounts 

provide a channel to bring more Americans into the banking system and will continue to play 

an important role in advancing economic inclusion.

These results are encouraging, but the survey also showed that significant work remains to 

be done to address the large disparities that exist in the United States with regard to access 

to the banking system. In 2021, 11.3 percent of Black households and 9.3 percent of Hispanic 

households were unbanked, compared to 2.1 percent of White households. Other populations 

also have lower levels of bank engagement including lower-income households, households 

with lower levels of formal education, single mothers, and households headed by a workingage individual with a disability.

These populations can be reached by taking advantage of bankable moments and by ensuring 

that consumers are aware of, and able to locate and open, bank accounts that can meet their 

needs. For example, during the pandemic, the FDIC partnered with the Internal Revenue 

Service to support consumers as they opened accounts so that they could receive stimulus 

payments as a direct deposit in a secure and timely manner. 
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FEDERAL DEPOSIT INSURANCE CORPORATION ANNUAL REPORT 2022 12 

The FDIC will continue its educational and outreach efforts to help consumers understand 

the benefits of a bank account, and will continue to support efforts to connect consumers 

with products and services that address their needs and help them build and sustain banking 

relationships.

SUPPORTING MINORITY DEPOSITORY 

INSTITUTIONS AND COMMUNITY 

DEVELOPMENT FINANCIAL INSTITUTIONS

The preservation and promotion of MDIs and CDFIs remains a long-standing priority for the 

FDIC.1 The FDIC’s research study, Minority Depository Institutions: Structure, Performance, and 

Social Impact,

2

 found that FDIC-insured MDIs have played a vital role in providing mortgage 

credit, small business lending, and other banking services to minority and low- and moderateincome communities. Similarly, banks designated as CDFIs by the Treasury’s CDFI Fund 

provide financial services in low-income communities and to individuals and businesses that 

have traditionally lacked access to credit. 

The FDIC supervises approximately two-thirds of the approximately 280 FDIC-insured MDIs and 

CDFIs. In addition to its supervisory activities, the FDIC’s Office of Minority and Community 

Development Banking supports the agency’s ongoing strategic and direct engagement with 

MDIs and CDFIs. 

In support of its statutory requirement to encourage the creation of new MDIs, this past 

May the FDIC issued a Financial Institution Letter that outlines the process by which FDICsupervised institutions or applicants for deposit insurance can make a request to be 

designated as an MDI.3 

In 2021, the FDIC designated five new institutions as MDIs, and in 2022, one new FDICsupervised de novo MDI opened for business. Three other existing institutions have been 

designated as MDIs, and the FDIC approved a conditional application for deposit insurance for 

a de novo MDI that is now raising capital.

Since 2020, significant new sources of private and public funding have become available to 

support FDIC-insured MDIs and CDFIs, known collectively as mission-driven banks. The FDIC 

issued a publication, Investing in the Future of Mission-Driven Banks: A Guide to Facilitating 

New Partnerships,

4

 to connect those who wish to support and partner with these institutions. 

Numerous large banks, technology companies, and others have invested hundreds of millions 

of dollars into mission-driven banks over the past two years. 

1 See Section 308 of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, Pub. L. 101-73, title III, 

§ 308. Aug 9, 1989, as amended by Pub. L. 11-203, title III, § 367(4), July 21, 2010, 124 Stat. 1556, codified at 12 U.S.C. 

1463 note.

2 See FDIC, Minority Depository Institutions: Structure, Performance, and Social Impact, available at

https://www.fdic.gov/regulations/resources/minority/2019-mdi-study/full.pdf.

3 See FDIC Financial Institution Letter, FIL-24-2022, Minority Depository Institution (MDI) Designation (May 19, 2022), 

available at https://www.fdic.gov/news/financial-institution-letters/2022/fil22024.html. 

4 See FDIC, Investing in the Future of Mission-Driven Banks: A Guide to Facilitating New Partnerships, available at 

https://www.fdic.gov/regulations/resources/minority/mission-driven/guide.html.
MESSAGE FROM THE CHAIRMAN

FEDERAL DEPOSIT INSURANCE CORPORATION ANNUAL REPORT 2022 13 

The federal government has provided new funding to these institutions through nearly $8.3 

billion in the U.S. Treasury’s Emergency Capital Investment Program (ECIP) and up to $3 billion 

in CDFI Fund programs, including up to $1.2 billion set aside for minority lending institutions. 

The banking agencies issued new regulations that revised capital rules to provide that 

Treasury’s investments under the program qualify as regulatory capital of insured MDIs and 

CDFIs and holding companies.5 The FDIC developed a Capital Estimator Tool and a Regulatory 

Capital Guide to enable mission-driven banks to approximate the impact of additional capital 

on various capital ratios. At the request of mission-driven banks, the FDIC developed a 

technical assistance program to help ECIP recipients understand supervisory expectations for 

the significant new growth that this capital will support over the coming years.

The FDIC also benefits from a number of MDI and CDFI bank executives serving on its Advisory 

Committee on Community Banking (CBAC), the MDI Subcommittee of the CBAC, and the 

Advisory Committee on Economic Inclusion. These bankers bring the voices of mission-driven 

banks to the FDIC Board and senior executives, and they have provided input on important 

policy initiatives.

SUPPORTING DIVERSITY, EQUITY, 

INCLUSION, AND ACCESSIBILITY

Diversity, equity, inclusion, and accessibility (DEIA) are fundamental aspects of the FDIC’s 

work. In recognition of the role DEIA plays in the FDIC’s ability to fulfill its mission, the FDIC 

established “promoting DEIA within the FDIC workforce and the broader financial industry” as 

one of seven FDIC Performance Goals in 2022.

Within its workforce, the FDIC continues to expand and support diversity and inclusion 

through recruitment and hiring initiatives, upward mobility opportunities for current 

employees, career development programs for the next generation of leaders, and improved 

employee engagement at all levels. The FDIC’s senior-most leaders meet monthly through 

the Diversity and Inclusion Executive Advisory Council to evaluate the FDIC’s progress on DEIA 

matters and identify areas and opportunities for improvement. 

Despite seeing progress in its efforts to improve workforce diversity, the FDIC knows that there 

is more to do to ensure that the FDIC workforce better reflects the demographics of the civilian 

labor force. In particular, the FDIC is focused on improving the agency’s representation of 

individuals who self-identify as Hispanic. 

The FDIC’s commitment to DEIA in the broader financial industry is reflected through its 

Financial Institution Diversity Self-Assessment program. This program supports the efforts 

of supervised institutions to create and grow their diversity programs, allowing them to build 

strong relationships with their clients and communities, maximize workforce representation, 

and develop and implement inclusion efforts. The FDIC has expanded its outreach with 

5 See FDIC press release, “Federal Bank Regulators Issue Rule Supporting Treasury’s Investments in Minority 

Depository Institutions and Community Development Financial Institutions” (March 9, 2021), available at 

https://www.fdic.gov/news/press-releases/2021/pr21018.html.
MESSAGE FROM THE CHAIRMAN

FEDERAL DEPOSIT INSURANCE CORPORATION ANNUAL REPORT 2022 14 

banking organizations and individual banks and launched a social media campaign to increase 

awareness about the self-assessment and will continue to encourage supervised banks to take 

advantage of this opportunity to evaluate and improve their own DEIA performance. 

CYBERSECURITY AND 

INFORMATION TECHNOLOGY

Threats from malicious cyber actors continue to be a significant and evolving risk for banks 

and their service providers. Evaluating cybersecurity practices continues to be a high-priority 

focus of the FDIC’s supervision program. 

In its 2022 Report on Cybersecurity and Resilience,

6

 the FDIC highlighted several components 

of its cybersecurity program including relevant safety and soundness standards, periodic 

guidance, alerts and advisories, technical assistance, and other outreach efforts. The report 

also discussed the agency’s efforts to enhance the cybersecurity education of its examination 

workforce and the creation of examiner work programs related to particular threats. The 

report also highlights interagency work related to cyber threats.

The FDIC recently examined ransomware attacks against FDIC-supervised institutions and 

their service providers to learn about the techniques that were most helpful in defending 

against those attacks. While the FDIC did not discover new categories of controls that need to 

be communicated to financial institutions, the examinations did reveal that those institutions 

that dedicate resources to implement appropriate controls can effectively defend against 

these attacks.

Examples of effective controls include high-quality, multi-factor authentication to control 

access to systems and network segmentation to limit the ability of a malicious actor to 

move laterally in a network. Where the FDIC finds these controls to be missing, a bank’s or 

service provider’s response to FDIC supervisory feedback could make a big difference in the 

company’s cybersecurity effectiveness.

MANAGING FDIC RESOURCES 

AND OPERATIONS

Since the start of mandatory telework in March 2020, the FDIC has conducted a limited 

number of in-person examination activities. In September 2022, the FDIC moved to Phase 

3 of its Return to the Office Plan and resumed having an in-person component for each 

safety and soundness and consumer compliance examination. Phase 3 institutes a hybrid 

work environment that allows examination team members to work from the field office or 

from home. In designing this new approach, the FDIC drew from lessons learned from its 

6 See FDIC, 2022 Report on Cybersecurity and Resilience, available at https://www.fdic.gov/regulations/resources/

cybersecurity/2022-cybersecurity-financial-system-resilience-report.pdf.
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FEDERAL DEPOSIT INSURANCE CORPORATION ANNUAL REPORT 2022 15 

work during mandatory and maximum telework as well as through internal reviews and 

consideration of responses to a request for information from the banking industry.

In December, the FDIC Board adopted a 2023 Operating Budget of $2.41 billion, which 

represents a 6.5 percent increase over last year’s budget. The budget included an increase in 

the authorized workforce of 220 full-time equivalent employees, primarily aimed at the FDIC’s 

bank supervision and other core mission responsibilities, bringing the 2023 authorized staffing 

total to 6,310.

The additional resources in this budget are targeted at recruiting, hiring, and retaining 

the diverse pool of highly qualified people the agency needs to carry out its mission and 

making IT investments to meet the operational and information security needs of the FDIC. 

These resources also reflect the collective bargaining agreement with the NTEU on a new 

three-year Compensation Agreement that will increase compensation to reflect the impact 

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. 

In addition, the proposed budget continues the substantial 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 the FDIC maintains.

Finally, the budget also includes funding for a public information campaign on deposit 

insurance next year when the FDIC celebrates its 90th anniversary. Particularly in light of some 

of the confusing claims that are being made about FDIC deposit insurance coverage of nontraditional assets, it is more important than ever that the American public understands clearly 

what is protected by deposit insurance.

CONCLUSION

During 2022, the U.S. banking industry continued to manage the impact of the COVID-19 global 

pandemic. Despite the uncertainty, the banking system has remained a source of strength for 

consumers, households, and businesses. 

However, the economic environment is changing. Inflationary pressures, rising interest rates, 

slowing economic growth, and geopolitical events create a very uncertain economic outlook 

with significant downside risks to the banking industry. 

In 2023, the FDIC will continue to carry out its mission to maintain public confidence and 

stability in the U.S. financial system and address these downside risks by maintaining a 

strong deposit insurance system, examining and supervising financial institutions for safety 

and soundness and consumer protection, making large and complex financial institutions 

resolvable, and managing receiverships. 

The FDIC will also continue its policy initiatives to strengthen and modernize the Community 

Reinvestment Act, review the Bank Merger Act process, understand and respond to the risks 

posed by crypto-assets, provide guidance on the financial risks posed by climate change, and 
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FEDERAL DEPOSIT INSURANCE CORPORATION ANNUAL REPORT 2022 16 

strengthen capital requirements for large banking organizations. 

As indicated, other areas of continued focus include the FDIC’s efforts to support minority 

depository institutions and community development financial institutions, promote a diverse 

and inclusive workplace at the FDIC, strengthen cybersecurity and information security within 

the banking industry, and manage the return to in-person bank examinations and other inperson activities at the FDIC.

None of the accomplishments outlined in this report would be possible without the hard work 

and commitment of the FDIC workforce. They continue to serve the agency and the U.S. public 

with professionalism, proficiency, integrity, and resilience. I am grateful for their dedication to 

the mission of the FDIC.

Sincerely,

Martin J. Gruenberg