F E D E R A L D E P O S I T I N S U R A N C E C O R P O R A T I O N 57

Program Area Performance Results

Insurance Adopted a Restoration Plan in October 2008 to restore the DIF reserve ratio to 1.15 

percent within five years as required by the Federal Deposit Insurance Reform 

Act of 2005.

Issued an interim rule establishing the Temporary Liquidity Guarantee Program 

(TLGP) to avoid or mitigate serious adverse effects on economic conditions and 

financial stability.

Completed substantial modifications to the agency’s information systems in order 

to implement statutory and regulatory changes to risk-based premiums and to 

track insurance assessment credit use and availability for each insured institution. 

Issued a Notice of Proposed Rulemaking (NPR) on Assessments proposing 

improvements to the risk-based pricing regulations that were adopted to 

implement deposit insurance reform legislation.

Proposed improvements included adding various financial ratios to the Large Bank 

method used to determine premium rates for large institutions and adjusting all 

institutions’ premium rates for unsecured debt and for significant reliance on 

brokered deposits or secured liabilities.

Completed reviews of the recent accuracy of the contingent loss reserves. 

•

•

•

•

•

•

3Chapter three

Performance Result

Summar

Summary of 2008 Performance Results by Program

The FDIC successfully achieved 48 of the 50 annual performance targets established in its 2008 Annual 

Performance Plan. One performance target was not achieved. It involved maintaining the insurance fund 

reserve ratio at a certain level. One performance target was not applicable. It related to on-site examinations 

or off-site analyses on supervised banks intending to operate under Basel II but capital regulations were not 

implemented yet. There were no instances in which 2008 performance had a material adverse effect on 

successful achievement of the FDIC’s mission or its strategic goals and objectives regarding its major 

program responsibilities.

Key accomplishments by program are highlighted in the table below:
58 2 0 0 8 A n n u l R e p or

Program Area Performance Results

Insurance (continued) Developed a final rule to implement the dividend requirements of the Reform Act. 

Researched and analyzed emerging risks and trends in the banking sector, financial 

markets, and the overall economy to identify issues affecting the banking industry 

and the deposit insurance fund. 

Formed a consumer research section to analyze consumer-related issues, including 

but not limited to fair lending, credit access for consumers and small businesses, 

financial services, and home mortgage finance. 

Completed risk assessments for all large insured depository institutions and 

followed up on all identified concerns through off-site review and analysis.

Conducted numerous outreach activities to bankers, trade groups, community 

groups, other regulators, and foreign visitors addressing economic and banking 

risk analysis. 

Developed a proactive risk identification process to provide earlier identification 

of trends, practices, or products that may pose high risk to insured institutions.

Published economic and banking information and analyses through the FDIC 

Quarterly, FDIC Quarterly Banking Profile (QBP), and the Center for Financial Research 

Working Papers. 

Championed the importance of financial education and highlighted the success of 

its Money Smart program as a means of promoting healthy economic and banking 

growth in the Americas.

Provided technical assistance to the central banks, bank supervisors and deposit 

insurers of six countries in 2008. A highlight of this year’s programs was an 

invitation by the government of El Salvador to have the FDIC help launch El 

Salvador’s national campaign on financial education. 

Hosted 66 individual visits with a total of 497 foreign visitors from over 32 countries. 

Foreign visitors were increasingly interested in discussing U.S. banking conditions, 

the FDIC’s role in the current crisis, and measures that have been taken in response 

to the crisis. Lastly, 162 foreign students from 17 countries received training in 

examinations, financial institutions analysis, loan analysis, examination 

management, information technology examination, and anti-money laundering 

and counter-terrorism financing.

•

•

•

•

•

•

•

•

•

•

(continued)
F E D E R A L D E P O S I T I N S U R A N C E C O R P O R A T I O N 59

CHAPTER 3 ★ Perf

Program Area Performance Results

Supervision and

Consumer Protection

Conducted 2,416 safety and soundness examinations, including required follow-up 

examinations of problem institutions, within prescribed time frames.

Conducted 1,826 compliance and Community Reinvestment Act examinations, 

including required follow-up examinations of problem institutions, within 

prescribed time frames.

Conducted 2,551 Bank Secrecy Act examinations, including required follow-up 

examinations and visitations.

Conducted 2,577 IT examinations of financial institutions and technology 

service providers.

Published Notice of Proposed Rulemaking for Basel II Standardized Approach 

and final guidance on the supervisory review process (Pillar 2) for banks using the 

advances approaches of Basel II. Staff continued other analytical and preparatory 

activities related to the implementation of these new capital regulations.

No FDIC-supervised institutions currently intend to operate under Basel II.

Among other releases, issued five Financial Institution Letters (FILs) providing 

guidance on (1) managing commercial real estate concentrations; (2) liquidity risk 

management; (3) managing third-party risk; (4) the importance of developing and 

implementing policies and procedures for acquiring, holding, and disposing of 

other real estate; and (5) reminding institutions that if, for risk management 

purposes, they decide to reduce or suspend home equity lines of credit, they 

must comply with certain legal requirements. In addition, 12 Disaster Guidance 

FILs were issued.

Reviewed outstanding Bank Secrecy Act/Anti-Money Laundering (BSA/AML

guidance and issued industry notification regarding the importance of an effective 

independent review of the BSA/AML compliance program. Concurrently, and as a

complement to the industry notification, issued examiner guidance to clarify the 

BSA/AML examination planning and transaction testing processes. Also, issued

examiner guidance relative to work paper documentation expectations. 

Completed a review of the effectiveness of the 2007 instructions issued regarding 

the handling of repeat violations during the internal review and control audits.

Conducted over 400 outreach and technical assistance events for bankers and 

community groups to promote awareness of community investment opportunities, 

access to capital, knowledge-sharing between the public and private sectors, and 

wealth-building opportunities for families.

Continued to disseminate the award-winning Money Smart financial education 

curriculum in multiple languages, adding 202 Money Smart Alliance members; 

contacting over 500 schools, school systems and related entities regarding the 

availability of the curriculum; and reaching approximately 120,200 individuals 

through train-the-trainer sessions and the self-paced computer-based instruction.

•

•

•

•

•

•

•

•

•

•

•

Receivership

Management

Successfully closed 25 failed institutions and ensured customers had access to 

insured deposits within one business day.

Adopted a final rule requiring the largest insured depository institutions to adopt 

mechanisms that would, in the event of the institution’s failure: (1) provide the FDIC 

with standard deposit account and other customer information; and (2) allow the 

placement and release of holds on liability accounts, including deposits. This 

functionality is required to be in place no later than February 18, 2010.

Reached the 18-month mark in 2008 for one institution that failed in 2007. A 

decision was made to close 80 percent of the claims for all claims areas.

•

•

•

(continued)
60 2 0 0 8 A n n u l R e p or

2008 Budget and Expenditures by Program

(Excluding Investments)

The FDIC budget for 2008 totaled $1.217 billion. Excluding $170 million for Corporate General and 

Administrative expenditures, budget amounts were allocated to corporate programs and related goals 

as follows: $173 million, or 14.2 percent, to the Insurance program; $683 million, or 56.1 percent, to the 

Supervision and Consumer Protection program; and $191 million, or 15.7 percent, to the Receivership 

Management program. 

Actual expenditures for the year totaled $1.205 billion. Excluding $129 million for Corporate General and 

Administrative expenditures, actual expenditures were allocated to programs as follows: $186 million, or 

15.4 percent, to the Insurance program; $644 million, or 53.4 percent, to the Supervision and Consumer 

Protection program; and $246 million, or 20.4 percent, to the Receivership Management program. 

0

100

200

300

400

500

600

700

$ 800

Insurance Program Supervision and Consumer 

Protection Program

Receivership Management

Program

General and 

Administrative

Budget Expenditures

2008 Budget and Expenditures (Su

Dollars in millions
F E D E R A L D E P O S I T I N S U R A N C E C O R P O R A T I O N 61

CHAPTER 3 ★ Perf

2008 Insurance P

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

#

Annual

Performance Goal Indicator Target Resu

1 Respond promptly to all 

financial institution closings 

and emerging issues.

Number of business days 

after an institution failure that 

depositors have access to 

insured funds either through 

transfer of deposits to the 

successor insured depository 

institution or depositor 

payout.

Depositors have access to 

insured funds within one 

business day if the failure 

occurs on a Friday.

Achieved.

See pg. 45.

Depositors have access to 

insured funds within two 

business days if the failure 

occurs on any other day of 

the week.

Achieved.

See pg. 45.

Insured depositor losses 

resulting from a financial 

institution failure.

There are no depositor losses 

on insured deposits.

Achieved.

See pg. 45.

No appropriated funds are 

required to pay insured 

depositors.

Achieved.

See pg. 45.

Enhancement of FDIC 

capabilities to make a deposit 

i­nsurance determination for 

large-bank failure.

Complete rulemaking on 

Large-Bank Deposit Insurance 

Determination Modernization

Achieved.

See pg. 59.

Performance Results by Program and Strategic Go
62 2 0 0 8 A n n u l R e p or

#

Annual

Performance Goal Indicator Target Resu

2 Identify and address risks 

to the Deposit Insurance 

Fund (DIF).

Insurance risks posed by 

insured depository institutions.

Assess the insurance risks 

in all insured depository 

institutions and adopt 

appropriate strategies.

Achieved.

See pg. 58.

Concerns referred for 

examination or other action.

Identify and follow up on all 

material issues raised through 

off-site review and analysis.

Achieved.

See pg. 58.

Emerging risks to the DIF. Identify and analyze existing 

and emerging areas of risk, 

including non-traditional and 

subprime mortgage lending, 

declines in housing market 

values, mortgage-related 

derivatives/collateralized debt 

obligations (CDOs), hedge 

fund ownership of insured 

institutions, commercial real 

estate lending, international 

risk, and other financial 

innovations.

Achieved.

See pgs. 

36-37, 58.

Address potential risks from 

cross-border banking instability through coordinated review 

of critical issues and, where 

appropriate, negotiate agreements with key authorities.

Achieved.

See pg. 31.

3 Disseminate data and analyses 

on issues and risks affecting 

the financial services industry 

to bankers, supervisors, the 

public and other stakeholders.

Scope and timeliness of 

information dissemination 

on identified or potential 

issues and risks.

Disseminate results of research 

and analyses in a timely 

manner through regular 

publications, ad hoc reports 

and other means.

Achieved.

See pg. 58.

Undertake industry outreach 

activities to inform bankers 

and other stakeholders about 

current trends, concerns and 

other available FDIC resources.

Achieved.

See pg. 58.

2008 Insurance Program Resu
F E D E R A L D E P O S I T I N S U R A N C E C O R P O R A T I O N 63

CHAPTER 3 ★ Perf

#

Annual

Performance Goal Indicator Target Resu

4 Maintain and improve the

deposit insurance system.

Implementation of deposit 

insurance reform.

Review the effectiveness of the 

new pricing regulations that 

were adopted to implement 

the reform legislation.

Achieved.

See pg. 57.

Enhance the additional risk 

measures used to adjust 

assessment rates for large 

institutions.

Achieved.

See pg. 27.

Develop a final rule on a 

permanent dividend system.

Achieved.

See pg. 58.

Loss reserves. Ensure the effectiveness of the 

reserving methodology by 

applying sophisticated 

analytical techniques to review 

variances between projected 

losses and actual losses, and 

by adjusting the methodology 

accordingly.

Achieved.

See pg. 57.

Fund adequacy. Set assessment rates to 

maintain the insurance fund 

reserve ratio between 1.15 and 

1.50 percent of estimated 

insured deposits.

Not 

Achieved.

See pg. 26.

5 Provide educational 

information to insured 

depository institutions and 

their customers to help them 

understand the rules for 

determining the amount of 

insurance coverage on 

deposit accounts.

Timeliness of responses to 

insurance coverage inquiries.

Respond to 90 percent of 

inquiries from consumers and 

bankers about FDIC deposit 

insurance coverage within 

time frames established by 

policy.

Achieved.

See pg. 43.

Educational initiatives and 

outreach events for consumers 

and bankers.

Conduct at least three sets of 

Deposit Insurance Seminar 

Series for bankers.

Achieved.

See pg. 43.

Assess the feasibility of (and, 

if feasible, define the requirements for) a consolidated 

Electronic Deposit Insurance 

Estimator (EDIE) application for 

bankers and consumers (to be 

developed in 2009).

Achieved.

See pg. 43.

Conduct outreach events and 

activities to support a deposit 

insurance education program 

that features FDIC 75th

anniversary theme.

Achieved.

See pg. 43.

2008 Insurance Program Resu
64 2 0 0 8 A n n u l R e p or

#

Annual

Performance Goal Indicator Target Resu

6 Expand and strengthen the 

FDIC’s participaton and leadership role in providing technical 

guidance, training, consulting 

services and information to 

international governmental 

banking and deposit insurance 

organizations.

Scope of information sharing 

and assistance available to 

international governmental 

bank regulatory and deposit 

insurance entities.

Undertake outreach activities 

to inform and train foreign 

bank regulators and deposit 

insurers.

Achieved.

See pg. 58.

Foster strong relationships 

with international banking 

regulators and associations 

that promote sound banking 

supervision and regulation, 

failure resolution and deposit 

insurance practices.

Achieved.

See pgs. 

30-31.

2008 Insurance Program Resu
F E D E R A L D E P O S I T I N S U R A N C E C O R P O R A T I O N 65

CHAPTER 3 ★ Perf

2008 Supervision and Consumer P

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

#

Annual

Performance Goal Indicator Target Resu

1 Conduct on-site risk 

management examinations to 

assess the overall financial 

condition, management 

practices and policies, and 

compliance with applicable 

laws and regulations of FDICsupervised depository 

institutions.

Percentage of required 

examinations conducted in 

accordance with statutory 

requirements and FDIC policy.

One hundred percent of 

required risk management 

examinations are conducted 

on schedule.

Achieved.

See pg. 32.

2 Take prompt and effective 

supervisory action to address 

problems identified during 

the FDIC examination of FDICsupervised institutions that 

receive a composite Uniform 

Financial Institutions Rating of 

“4” or “5” (problem institution). 

Monitor FDIC-supervised

insured depository institutions’ compliance with formal 

and informal enforcement 

actions.

Percentage of follow-up 

examinations of problem 

institutions conducted within 

required time frames.

One hundred percent of 

follow-up examinations are 

conducted within 12 months 

of completion of the prior 

examination.

Achieved.

See pg. 32.

3 Assist in protecting the 

infrastructure of the U.S. 

banking system against 

terrorist financing, money 

laundering and other financial 

crimes.

Percentage of required 

examinations conducted in 

accordance with statutory 

requirements and FDIC policy. 

One hundred percent of 

required Bank Secrecy Act 

examinations are conducted 

on schedule.

Achieved.

See pg. 32.

4 More closely align regulatory

capital with risk in large or 

multinational banks while 

maintaining capital at 

prudential levels.

Preliminary results of Basel II 

Parallel Run.

Conduct analyses of early 

results of the new capital 

regime as information 

becomes available.

Achieved.

See pg. 36.

Changes to Basel II Capital 

Framework.

Develop options for refining 

Basel II that are responsive to 

lessons learned from the 

2007-2008 market turmoil.

Achieved.

See pg. 36.
66 2 0 0 8 A n n u l R e p or

#

Annual

Performance Goal Indicator Target Resu

5 More closely align regulatory

capital with risk in banks not 

subject to Basel II capital rules 

while maintaining capital at 

prudential levels.

Development of a revised 

capital framework proposal for 

institutions not subject to 

Basel II.

Finalize a regulatory capital 

framework based on the Basel 

II “Standardized Approach” as 

an option for U.S. banks not 

required to use the new 

advanced approaches.

Achieved

See pg. 36.

6 Ensure that FDIC-supervised 

institutions that plan to 

operate under the new Basel II 

Capital Accord are well 

positioned to respond to new 

capital requirements.

Percentage of on-site 

examinations or off-site 

analyses performed.

Performed on-site examinations or off-site analyses of all 

FDIC-supervised banks that 

have indicated a possible 

intention to operate under 

Basel II to ensure that they 

are effectively working toward 

meeting required qualification 

standards. 

Not 

Applicable.

See pg. 59.

7 Reduce regulatory burden 

on the banking industry while 

maintaining appropriate 

consumer protection and 

safety and soundness 

safeguards.

Completion of analysis of 

regulatory burden associated 

with the BSA/AML

examination process.

Complete and evaluate 

options for refining the 

current risk-focused approach 

used in the conduct of BSA/

AML examinations to reduce

the burden they impose on 

FDIC-supervised institutions. 

Achieved.

See pg. 34.

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

8 Conduct CRA and compliance 

examinations in accordance 

with the FDIC’s examination 

frequency policy.

Percentage of examinations 

conducted in accordance with 

required time frames.

One hundred percent of 

required examinations are 

conducted within time frames 

established by FDIC policy.

Achieved.

See pg. 32.

9 Take prompt and effective 

supervisory action to monitor 

and address problems identified during compliance examinations of FDIC-supervised 

institutions that receive a “4” 

or “5” rating for compliance 

with consumer protection and 

fair lending laws.

Percentage of follow-up 

examinations or related 

activities conducted within 

required time frames.

One hundred percent 

of follow-up examinations 

or related activities are 

conducted within 12 months 

from the date of a formal 

enforcement action to confirm 

that the institution is in 

compliance with the 

enforcement action.

Achieved.

See pg. 32.

10 Determine the need for 

changes in current FDIC 

practices for following up 

on significant violations of 

consumer compliance laws 

and regulations identified 

during examinations of banks 

for compliance with 

consumer protection and fair 

lending laws.

Implementation review of new 

practices instituted in 2007.

Complete a review of the 

effectiveness of the 2007 

instructions issued on the 

handling of repeat instances 

of significant violations 

identified during compliance 

examinations.

Achieved.

See pg. 59.

2008 Supervision and Consumer Protection P
F E D E R A L D E P O S I T I N S U R A N C E C O R P O R A T I O N 67

CHAPTER 3 ★ Perf

#

Annual

Performance Goal Indicator Target Resu

11 Scrutinize evolving consumer 

products, analyze their current 

or potential impact on 

consumers and identify 

potentially harmful or illegal 

practices. Promptly institute a 

supervisory response program 

across FDIC-supervised 

institutions when such 

practices are identified.

Establishment of supervisory 

response programs to address 

potential risks posed by new 

consumer products.

Revise the FDIC’s system for 

identifying, reviewing and 

addressing potentially harmful 

or illegal practices associated 

with evolving consumer 

products.

Achieved.

See pg. 38.

Develop and implement 

new supervisory response 

programs across all FDICsupervised institutions to 

address potential risks posed 

by new consumer products.

Achieved.

See pg. 38.

12 Effectively investigate and 

respond to consumer 

complaints about FDICsupervised financial 

institutions.

Timely responses to written 

complaints and inquiries.

Responses are provided to 90 

percent of written complaints 

and inquiries within time 

frames established by policy.

Achieved.

See pg. 43.

13 Provide effective outreach 

related to CRA, fair lending, 

and community development. 

Number of outreach activities 

conducted, including 

technical assistance activities.

Conduct 125 technical 

assistance (examination 

support) efforts or banker/

community outreach activities 

related to CRA, fair lending, 

and community development.

Achieved.

See pg. 59.

Expanded access to high 

quality financial education 

through the Money Smart 

curriculum. 

Release a “Young Adult”

version of the Money Smart

curriculum.

Achieved.

See pgs. 

43-44.

Distribute at least 10,000 

copies of the “Young Adult”

version of Money Smart.

Achieved.

See pg. 43.

Scope and timeliness of 

dissemination of the results 

of the unbanked survey.

Analysis of survey results is 

disseminated within six 

months of completion of the 

survey through regular 

publications, ad hoc reports 

and other means.

Achieved.

See pgs. 

40-41.

Support for expanded 

foreclosure prevention efforts 

for consumers at risk of 

foreclosure (in partnership 

with NeighborWorks® America 

and other organizations).

Provide technical assistance, 

support and consumer 

outreach activities in all six 

FDIC regions to at least eight 

local NeighborWorks® America 

affiliates or local coalitions 

that are providing foreclosure 

mitigation counseling in high 

need areas.

Achieved.

See pg. 39.

2008 Supervision and Consumer Protection P
68 2 0 0 8 A n n u l R e p or

#

Annual

Performance Goal Indicator Target Resu

14 Continue to expand the 

FDIC’s national leadership 

role in development and 

implementation of programs 

and strategies to encourage 

and promote broader 

economic inclusion within 

the nation’s banking system.

Results of pilot small-dollar 

lending program conducted 

by participating financial 

institutions.

Analyze quarterly data 

submitted by participating 

institutions to identify early 

trends and potential best 

practices.

Achieved.

See pg. 40.

Degree of success achieved in 

bringing the unbanked/

underserved into the financial 

mainstream through the 

Alliance for Economic 

Inclusion.

Open 27,000 new bank 

accounts.

Achieved.

See pg. 38.

Initiate new small-dollar loan 

products in 32 financial 

institutions.

Achieved.

See pg. 38.

Initiate remittance products in 

32 financial institutions.

Achieved.

See pg. 38.

Reach 18,000 consumers 

through financial education 

initiatives.

Achieved.

See pg. 38.

2008 Supervision and Consumer Protection P
F E D E R A L D E P O S I T I N S U R A N C E C O R P O R A T I O N 69

CHAPTER 3 ★ Perf

2008 Receivership Man

Strategic Goal: Recovery to creditors of receiverships is achieved.

#

Annual

Performance Goal Indicator Target Resu

1 Market failing institutions to

all known qualified and 

interested potential bidders.

Scope of qualified and 

interested bidders solicited.

Contact all known qualified 

and interested bidders.

Achieved.

See pg. 45.

2 Value, manage, and market 

assets of failed institutions 

and their subsidiaries in a 

timely manner to maximize 

net return.

Percentage of failed 

institution’s assets marketed.

Ninety percent of the book 

value of a failed institution’s 

marketable assets are 

marketed within 90 days of 

failure.

Achieved.

See pg. 45.

3 Manage the receivership

estate and its subsidiaries 

toward an orderly termination.

Timely termination of new 

receiverships.

Terminate all receiverships 

within 90 days of the 

resolution of all impediments.

Achieved.

See pg. 48.

4 Conduct investigations into all 

potential professional liability 

claim areas for all failed insured 

depository institutions and 

decide as promptly as possible 

to close or pursue each claim, 

considering the size and 

complexity of the institution.

Percentage of investigated 

claim areas for which a 

decision has been made to 

close or pursue the claim.

For 80 percent of all claim 

areas, a decision is made to 

close or pursue claims within 

18 months of the failure date.

Achieved.

See pg. 59.
70 2 0 0 8 A n n u l R e p or

Insurance P

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

Annual Performance Goals and Targets 2007 2006 

1. Respond promptly to all financial institution closings and emerging issues.

Provide access to insured funds in one business day if 

the failure occurs on a Friday.

• Achieved. Not Applicable.

No Failures.

Not Applicable.

No Failures.

Provide access to insured funds in two business days if 

the failure occurs on any other day of the week.

• Achieved. Not Applicable.

No Failures.

Not Applicable.

No Failures.

Review comments received in response to the 

Advance Notice of Proposed Rulemaking on LargeBank Deposit Insurance Determination Modernization

• Achieved. Achieved.

2. Identify and address risks to the Deposit Insurance Fund.

Assess the insurance risks in 100 percent of insured 

depository institutions and adopt appropriate 

strategies.

• Achieved. Achieved. Achieved.

Identify and follow up on 100 percent of material 

issues raised through off-site review and analysis.

• Achieved. Achieved.

Identify and review the emerging areas of risk, 

including mortgage lending, hedge funds, commercial 

real estate lending, derivatives, money laundering, 

illicit financial transactions and the international 

operations of insured depository institutions.

• Achieved.

Address potential risks from cross-border banking 

instability through coordinated review of critical 

issues and, where appropriate, agreements with key 

authorities.

• Achieved.

• Identify and follow up on 100 percent of referrals. Achieved.

3. Maintain sufficient and reliable information on insured depository institutions.

Implement a modernized Call Reporting process 

during the second Call Reporting period in 2005.

• Not Achieved.

Prior Years’ Performance Results

Refer to the respective full Annual Report of prior years for more information on performance results for those 

years. (Shaded area indicates no such target existed for that respective year.)
F E D E R A L D E P O S I T I N S U R A N C E C O R P O R A T I O N 71

CHAPTER 3 ★ Perf

Insurance Program Resu

Annual Performance Goals and Targets 2007 2006 

4. Disseminate data and analyses on issues and risks affecting the financial services industry to bankers, 

supervisors, the public and other stakeholders.

Results of research and analyses are disseminated in a 

timely manner through regular publications, ad hoc 

reports and other means.

• Achieved. Achieved. Achieved.

Industry outreach activities are undertaken to inform 

bankers and other stakeholders about current trends, 

concerns and other available FDIC resources.

• Achieved. Achieved. Achieved.

5. Maintain and improve the deposit insurance system.

• Implement the new deposit insurance pricing system. Achieved.

Complete and issue guidance on the pricing of 

deposit insurance for large banks.

• Achieved.

Publish an ANPR seeking comment on a permanent 

dividend system.

• Achieved.

Develop and implement an assessment credit and 

dividends system and a new deposit insurance pricing 

system.

• Achieved.

Implement deposit insurance reform legislation in 

accordance with statutorily prescribed time frames.

• Achieved. Not Applicable. 

Legislation 

enacted Feb. 8, 

2006.

Provide information and analysis to Congressional 

committees in support of deposit insurance reform 

legislation.

• Achieved.

Obtain legislative support for a proposed assessment 

credit and rebate system and a new deposit insurance 

pricing system.

• Achieved.

Enhance the effectiveness of the reserving 

methodology by applying sophisticated analytical 

techniques to review variances between projected 

losses and actual losses, and by adjusting the 

methodology accordingly.

• Achieved. Achieved. Achieved.

Set assessment rates to maintain the insurance fund 

reserve ratio between 1.15 and 1.50 percent of 

estimated insured deposits.

• Achieved. Achieved.

Set assessment rates to maintain the insurance funds 

at the designated reserve ratio (DRR), or return them 

to the DRR if they fall below it, as required by statute.

• Achieved.

When deposit insurance reform legislation is enacted, 

promulgate rules and regulations establishing criteria 

for replenishing the Deposit Insurance Fund when it 

falls below the low end of the range.

• Not Applicable.

Legislation 

enacted Feb. 8, 

2006.

Enhance the working prototype of the integrated fund 

model for financial risk management.

• Achieved.
72 2 0 0 8 A n n u l R e p or

Insurance Program Resu

Annual Performance Goals and Targets 2007 2006 

6. Provide educational information to insured depository institutions and their customers to help them understand 

the rules for determining the amount of insurance coverage on deposit accounts.

Publish a comprehensive and authoritative resource 

guide for bankers, attorneys, financial advisors and 

similar professionals on the FDIC’s rules and 

requirements for deposit insurance coverage of 

revocable and irrevocable trust accounts. 

• Achieved.

Conduct a series of national teleconferences for 

insured financial institutions to address current 

questions and issues relating to FDIC insurance 

coverage of deposit accounts.

• Achieved.

Update Insuring Your Deposits (basic deposit 

insurance brochure for consumers), Your Insured 

Deposit (comprehensive deposit insurance brochure), 

and EDIE (Electronic Deposit Insurance Estimator) on 

the FDIC Web site to reflect changes resulting from 

enactment of deposit insurance legislation.

• Achieved.

Update the consumer version of EDIE (Electronic 

Deposit Insurance Estimator) located on the FDIC’s 

Web site.

• Achieved.

Develop and make available to the public an updated 

Spanish language version of EDIE reflecting deposit 

insurance reform.

• Achieved.

Develop and make available to the public a Spanish 

language version of the FDIC’s 30-minute video on 

deposit insurance coverage.

• Achieved.

Respond to 90 percent of inquiries from consumers 

and bankers about FDIC deposit insurance coverage 

within time frames established by policy.

• Achieved. Achieved.

Respond to 90 percent of written inquiries within time 

frames established by policy.

• Achieved.

7. Expand and strengthen the FDIC’s leadership role in providing technical guidance, training, consulting services 

and information to international governmental banking and deposit insurance organizations.

Undertake global outreach activities to inform and 

train foreign bank regulators and deposit insurers. 

• Achieved.

Foster strong relationships with international banking 

regulators and associations that promote sound 

banking policies in order to provide leadership and 

guidance in global banking supervision and 

regulations, failure resolution and deposit insurance. 

• Achieved.
F E D E R A L D E P O S I T I N S U R A N C E C O R P O R A T I O N 73

CHAPTER 3 ★ Perf

Supervision and Consumer P

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

Annual Performance Goals and Targets 2007 2006 

1. Conduct on-site risk management examinations to assess the overall financial condition, management practices 

and policies, and compliance with applicable laws and regulations of FDIC-supervised depository institutions.

One hundred percent of required risk management 

examinations (including reviews of information 

technology (IT) and Bank Secrecy Act (BSA) 

compliance) are conducted on schedule.

• Achieved. Achieved. Achieved.

2. Take prompt and effective supervisory action to address issues identified during the FDIC examination of FDICsupervised institutions that receive a composite Uniform Financial Institutions Rating of “4” or “5” (problem 

institution). Monitor FDIC-supervised insured depository institutions’ compliance with formal and informal 

enforcement actions.

One hundred percent of follow-up examinations are 

conducted within 12 months of completion of the 

prior examination.

• Achieved. Achieved. Achieved.

3. Increase regulatory knowledge to keep abreast of current issues related to money laundering and 

terrorist financing.

An additional 10 percent (at least 10 percent for year 

2006) of BSA/AML subject-matter experts nationwide

are certified under the Association of Certified AntiMoney Laundering Specialists certification program

• Achieved. Achieved.

4. Increase industry and regulatory awareness of emerging/high-risk areas.

The number of trained BSA/AML subject-matter

experts increased to 300.

• Achieved.

Advanced training is completed for all BSA/AML

subject-matter experts.

• Achieved.

• At least one outreach session per region. Achieved.

5. More closely align regulatory capital with risk in large or multinational banks while maintaining capital at 

prudential levels. 

Further develop the Basel II framework to ensure that 

it does not result in a substantial reduction in riskbased capital requirements or significant competitive 

inequities among different classes of banks. Consider 

alternative approaches for implementing the Basel 

Capital Accord.

• Achieved.

Participate in the continuing analysis of the projected 

results of the new capital regime.

• Achieved.

Promote international cooperation on the adoption of 

supplemental capital measures in countries that will 

be operating under Basel II.

• Achieved.

• Publish a Notice of Proposed Rulemaking (NPR). Achieved.

Participate in the continuing analysis of the projected 

results of the new capital regime.

• Achieved.
74 2 0 0 8 A n n u l R e p or

supervision and consumer prote

Annual Performance Goals and Targets 2007 2006 

Notice of Proposed Rulemaking (NPR) and associated 

examination guidance for implementing the new 

Basel Capital Accord are published for comment.

• Achieved.

• Quantitative Impact Study 4 is completed. Achieved.

6. More closely align regulatory capital with risk in banks not subject to Basel II capital rules while maintaining 

capital at prudential levels.

• Complete rulemaking on Basel IA. Not Applicable.

Develop a Notice of Proposed Rulemaking (NPR) for 

public issuance.

• Achieved.

7. Ensure that FDIC-supervised institutions that plan to operate under the new Basel II Capital Accord are well 

positioned to respond to the new capital requirements.

On-site examinations or off-site analyses are 

performed for all FDIC-supervised banks that intend 

to operate under Basel II to ensure that they are 

effectively working toward meeting required 

qualification standards.

• Achieved. Achieved. Achieved.

8. Reduce regulatory burden on the banking industry while maintaining appropriate consumer protection and 

safety and soundness safeguards.

Applicable provisions of the Financial Services 

Regulatory Relief Act of 2006 (FSRRA) are 

implemented in accordance with statutory 

requirements.

• Partially 

Achieved.

Support is provided to the Government Accountability 

Office (GAO), as requested, for studies required under 

FSRRA.

• Achieved.

State AML assessments of MSBs are incorporated int

FDIC risk management examinations in states where 

MSB AML regulatory programs are consistent wit

FDIC risk management standards.

• Partially 

Achieved.

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

1. Conduct CRA and compliance examinations in accordance with the FDIC’s examination frequency policy.

One hundred percent of required examinations are 

conducted within time frames established by 

FDIC policy.

• Achieved. Achieved. Achieved.

2. Take prompt and effective supervisory action to monitor and address problems identified during compliance 

examinations of FDIC-supervised institutions that received a “4” or “5” rating for compliance with consumer 

protection and fair lending laws.

One hundred percent of follow-up examinations or 

related activities are conducted within 12 months 

from the date of a formal enforcement action to 

confirm that the institution is in compliance with the 

enforcement action.

• Achieved. Achieved. Achieved.
F E D E R A L D E P O S I T I N S U R A N C E C O R P O R A T I O N 75

CHAPTER 3 ★ Perf

supervision and consumer prote

Annual Performance Goals and Targets 2007 2006 

3. Determine the need for changes in current FDIC practices for following up on actions on significant violations 

of consumer compliance laws and regulations identified during examinations of banks for compliance with 

consumer protection and fair lending laws.

•	 An analysis is completed for all institutions on the 

prevalence and scope of repeat instances of 

significant violations from the previous compliance 

examination.

Achieved.

•	 A determination is made regarding the need for 

changes to current FDIC and FFIEC guidance on 

follow-up supervisory action on significant 

violations identified during compliance 

examinations based on the substance and level of 

risk posed to consumers by these repeat violations.

Achieved.

4. Provide effective outreach and technical assistance on topics related to the CRA, fair lending, and 

community development.

200,000 additional individuals are taught using the 

Money Smart curriculum.

• Achieved. Achieved. Achieved.

120 school systems and government entities are 

contacted to make them aware of the availability of 

Money Smart as a tool to teach financial education to 

high school students.

• Achieved.

A review of existing risk management and 

compliance/CRA examination guidelines and practices 

is completed to ensure that they encourage and 

support the efforts of insured financial institutions to 

foster economic inclusion, consistent with safe and 

sound banking practices.

• Achieved.

A pilot project is conducted with banks near military 

installations to provide small-dollar loan alternatives 

to high-cost payday lending.

• Not Achieved.

Strategies are developed and implemented to 

encourage FDIC-supervised institutions to offer smalldenomination loan programs.

• Achieved.

Research is conducted and findings disseminated on 

programs and strategies to encourage and promote 

broader economic inclusion within the nation’s 

banking system.

• Achieved.

125 technical assistance (examination support) efforts 

or banker/community outreach activities are 

conducted related to CRA, fair lending, or community 

development.

• Achieved. Achieved. Achieved.

200 additional members are added to the Money 

Smart Alliance.

• Achieved.

20,000 additional copies of the Money Smart curricula 

are distributed.

• Achieved.

5. Effectively meet the statutory mandate to investigate and respond to consumer complaints about FDICsupervised financial institutions.

Responses are provided to 90 percent of written 

complaints within time frames established by policy.

• Achieved. Achieved. Achieved.
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Receivership Man

Strategic Goal: Recovery to creditors of receivership is achieved.

Annual Performance Goals and Targets 2007 2006 

1. Market failing institutions to all known qualified and interested potential bidders.

• Contact all known qualified and interested bidders. Achieved. Not Applicable. 

No Failures.

Not Applicable. 

No Failures.

2. Value, manage, and market assets of failed institutions and their subsidiaries in a timely manner to maximize 

net return.

Ninety percent of the book value of a failed 

institution’s marketable assets are marketed within 

90 days of failure.

• Achieved. Not Applicable. 

No Failures.

Not Applicable. 

No Failures.

3. Manage the receivership estate and its subsidiaries toward an orderly termination.

Terminate all receiverships within 90 days of the 

resolution of all impediments.

• Achieved. Achieved.

Inactivate 75 percent of receiverships managed 

through the Receivership Oversight Program within 

three years of the failure date.

• Not Achieved.

4. Conduct investigations into all potential professional liability claim areas in all failed insured depository 

institutions and decide as promptly as possible to close or pursue each claim, considering the size and 

complexity of the institution.

For 80 percent of all claim areas, a decision is made 

to close or pursue claims within 18 months of the 

failure date.

• Not Applicable. 

No claims within 

the 18-month 

period.

Not Applicable. 

No Failures.

Achieved.
F E D E R A L D E P O S I T I N S U R A N C E C O R P O R A T I O N 77

CHAPTER 3 ★ Perf

Program Evaluation

Program evaluations are designed to improve the 

operational effectiveness of the FDIC’s programs 

and ensure that objectives are met. These evaluations are often led by the Office of Enterprise Risk 

Management and are generally interdivisional, 

collaborative efforts involving management and 

staff from the affected program(s). 

The Corporation’s 2008 Annual Performance Plan 

contained several objectives aimed at ensuring that 

the FDIC would continue to address key corporate 

issues, including the upgrade of the FDIC’s New 

Financial Environment (NFE), privacy, shared 

folders access and security, and asset management. 

The following are the results of the Corporation’s 

program evaluation activities for 2008. 

The FDIC is in the process of both upgrading NFE , 

its state-of-the-art financial management system, 

and changing the system platform on which it sits. 

The upgrade of the PeopleSoft products to release 

9.0 and the change from the IBM mainframe structure with DB2 database to an individual application 

server structure with the Oracle database will allow 

the FDIC certain advances within the financial 

management and reporting arena. With the newer 

version of the PeopleSoft products, the FDIC will 

see increased business functionality and extended 

software support. Additionally, the change in 

platform will bring less system downtime, 

increased data scalability and a more sustainable 

environment for future enhancements and 

upgrades. The NFE software upgrade and platform 

change are expected to be completed by mid-2009.

In 2008, FDIC developed an Operational Review 

Program for the post-closing asset management 

function. Guidance was also developed for asset 

managers on participation loans and home equity 

lines of credit. This guidance ensures consistency 

in post-closing activities.

During 2008, the FDIC organized operations and 

support for major initiatives of the Temporary 

Liquidity Guarantee Program. The results of these 

initiatives were meant to strengthen market stability, improve the strength of financial institutions 

and enhance market liquidity. Going forward, 

efforts of the FDIC will be geared toward further 

defining operations and controls, management 

reporting and administration of this new program.

The shared folders access and security initiative, 

started in 2008, is a corporate-wide effort to reduce 

the inventory of electronic folders and improve 

security management of the remaining folders 

necessary for the Corporation’s ongoing work. This 

effort will continue in 2009.

The Corporation enhanced its methodology in 

2008 to compare IT development projects 

objectively for those projects spending operating 

funds. This methodology identified preliminary 

business value, benefits expected from the project, 

and risk recognition. The Chief Information Office 

Council (CIO Council) used this methodology 

successfully for its 2009 selection process. Use of 

this common methodology at the CIO Council level 

in conjunction with what is done at the Capital 

Investment Review Committee level enhances the 

Corporation’s capital planning and investment 

management maturity and enables the Corporation 

to more strategically select its IT investments.

In 2008, the FDIC, being concerned about the 

safety of FDIC-managed receivership and subsidiary funds, researched alternatives for its banking 

and investment needs for receivership-related 

matters. After careful review, the FDIC obtained 

banking services from the Federal Home Loan 

Bank of New York, which is able to handle critical 

accounts and services needed by the FDIC.

During 2008, two Post Project Reviews (PPRs) were 

conducted to improve the Corporation’s future 

systems development efforts by reviewing recently 

implemented projects. Among the several significant reviews completed in 2008 were reviews of the 

Central Data Repository (CDR) and the Corporate 

Human Resources Information System (CHRIS) 

Time and Attendance project. Most significant is 

that the lessons learned and best practices 

identified in conducting the PPRs were rolled back 

into front end processes and requirements for 

future projects. 

Program evaluation activities in 2009 will focus on 

key corporate issues, including continuing work on 

the Temporary Liquidity Guarantee Program and 

issues relating to contract management oversight 

and staff analysis.
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