28

III. Performance Results Summary

Summary of 2005 Performance Results by Program

The FDIC successfully achieved 27 of the 34 annual performance targets 

established in its 2005 Annual Performance Plan. Six performance targets were

not applicable and one was not met. 

Key accomplishments by program are highlighted on the following page. There

were no instances in which 2005 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. In addition, consideration of 2005

performance results was an integral part of the development of the FDIC’s 2006

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 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.
29

Program Area Performance Results

Insurance ● Successfully implemented the Central Data Repository (CDR) to collect and process Reports of 

Condition and Income (Call Reports) from financial institutions. This FFIEC project will improve 

the quality and timeliness of financial institution data.

● Conducted and published analysis on the effects of Hurricanes Katrina and Rita.

● Issued numerous economic and banking information and analyses publications including Outlook, 

FYI electronic bulletins, and Center for Financial Research Working Papers.

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

identified concerns referred for examination or other supervisory action.

● Developed a working prototype of an integrated fund model (IFM) during 2005, with enhancements

focusing on the primary component of the IFM– the Loss Distribution Model. 

● No financial institution failures occurred during 2005.

Supervision and ● Conducted 2,399 safety and soundness examinations. This included all statutorily required safety

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

postponed to early 2006 to give financial institutions time to recover from the effects of the 

Gulf Coast Hurricanes.

● Conducted 2,020 compliance and Community Reinvestment Act examinations in accordance with

FDIC policy, except for a small number postponed to early 2006 to give financial institutions time 

to recover from the effects of the Gulf Coast Hurricanes.

● Participated in 406 Money Smart events and technical assistance activities related to the 

Community Reinvestment Act, fair lending and community development, added 306 

Money Smart Alliance members, and distributed 95,283 copies of the Money Smart curriculum.

Receivership ● Terminated 29 of the 94 (31 percent) financial institution receiverships existing at the beginning 

Management of the year.

● Conducted 100 percent of professional liability investigations on all four institutions that reached 

the 18-month milestone. 
30

2005 Budget and Expenditures by Program (Excluding Investments)

The FDIC budget for 2005 totaled $1.101 billion. Excluding $113 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; $555 million, or 50 percent, to 

the Supervision and Consumer Protection program; and $259 million, or 

24 percent, to the Receivership Management program. 

Actual expenditures for the year totaled $990 million. Excluding $136 million 

for Corporate General and Administrative expenditures, actual expenditures

were allocated to programs as follows: $129 million, or 13 percent, to 

the Insurance program; $605 million, or 61 percent, to the Supervision and

Consumer Protection program; and $120 million, or 12 percent, to the

Receivership Management program. 

Expenditures

Budget

$ 700

600

500

400

300

200

100

0

Insurance Supervision and Receivership General 

Program Consumer Protection Management and

Program Program Administrative 

2005 Expenditures and Budget (Support Allocated) 

Dollars in Millions
31

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 Not

institution closings and emerging institution failure depositors a Friday, the target is one Applicable.

issues. have access to insured funds business day. No failures

either through transfer of in 2005.

deposits to successor insured

depository institution or If a failure occurs on any Not

depositor payout. other day of the week, the Applicable.

target is two business days. No failures

in 2005.

2. Identify and address risks to the Insurance risks posed by large Assess the insurance risks in Achieved.

insurance funds. insured depository institutions. 100 percent of large insured See pg. 29.

depository institutions and

adopt appropriate strategies.

Concerns referred for Identify and follow up on Achieved.

examination or other action. 100 percent of referrals. See pg. 29.

Dissemination of data and Results of research and Achieved.

analyses on issues and risks analyses are disseminated See pg. 29.

affecting the banking industry in a timely manner through 

to bankers, supervisors, the regular publications, ad hoc 

public, and other stakeholders. reports and other means.

Industry outreach activities Achieved.

are undertaken to inform See pgs.

bankers and other stake- 10-11.

holders about current trends

and concerns and available 

FDIC resources.

3. Maintain sufficient and reliable Quality and timeliness of bank Implement a modernized Achieved.

information on insured depository data. Call Reporting process during See pg. 11.

institutions. the second Call Reporting

period in 2005.
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 Deposit Insurance Reform. Provide information and Achieved.

insurance system. analysis to Congressional See pgs.

committees in support of 8-9.

deposit insurance reform

legislation.

Obtain legislative support Achieved.

for a proposed assessment See pgs.

credit and rebate system 8-9.

and a new deposit insurance

pricing system.

When deposit insurance Not 

reform is enacted, implement Applicable.

the legislation in accordance Legislation

with statutorily prescribed enacted

time frames. Feb. 8, 2006.

Loss Reserves. Enhance the effectiveness Achieved.

of the reserving methodology See pg. 29.

by applying sophisticated

analytical techniques to

review variances between

projected losses and actual

losses, and by adjusting the

methodology accordingly.

Fund Adequacy. Set assessment rates to Achieved.

maintain the insurance funds See pg. 37

at the designated reserve 

ratio (DRR) or return them 

to the DRR if they fall below 

it, as required by statute.

When deposit insurance Not

reform legislation is enacted, Applicable.

promulgate rules and Legislation

regulations establishing criteria enacted

for replenishing the Deposit Feb. 8, 2006.

Insurance Fund when it falls 

below the low end of the 

range.

Enhance the working prototype Achieved.

of the integrated fund model See pg. 29.

for financial risk management.

32
33

Insurance Program Results (continued)

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

Annual Performance Goal Indicator Target Results

5. Provide educational information Utility of educational tools Update the consumer version Achieved.

to insured depository institutions developed for bankers and of the EDIE (Electronic See pg.18.

and their customers to help them consumers. Deposit Insurance Estimator) 

understand the rules for determining located on the FDIC’s Web 

the amount of insurance coverage site.

on deposit accounts.
34

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 risk management Percentage of required One hundred percent of Achieved.

examinations to assess an FDIC- examinations conducted in required safety and soundness See pg. 13.

supervised insured depository accordance with statutory examinations (including a

institution’s overall financial condition, requirements and FDIC policy. review for BSA compliance)

management practices and policies, are conducted on schedule.

and compliance with applicable laws

and regulations.

2. Take prompt and effective supervisory Percentage of follow-up One hundred percent of Achieved.

action to address problems identified examinations of problem follow-up examinations are See pg. 13.

during the FDIC examination of FDIC- institutions conducted within conducted within 12 months 

supervised institutions that receive required time frames. of completion of the prior

a composite Uniform Financial examination.

Institutions Rating of 4 or 5 (problem

institutions). Monitor FDIC-supervised

insured depository institutions’

compliance with formal and informal

enforcement actions.

3. Increase industry and regulatory Number of trained BSA/AML The number of trained Achieved.

awareness of emerging/high-risk subject-matter experts. BSA/AML subject matter See pg.15.

areas. experts is increased to 300.

Advanced training is completed Achieved.

for all BSA/AML subject See pg.39.

matter experts.

Number of industry outreach At least one outreach session Achieved.

sessions on BSA/AML/Counter is conducted per region. See pg.15.

Financing of Terrorism (CFT)

issues.

4. More closely align regulatory capital Completion of preparatory Notice of Proposed Rulemaking Achieved.

with risk in large or multinational activities for implementation of (NPR) and associated See pg. 10.

banks. the new Basel Capital Accord. examination guidance for 

implementing the new Basel

Capital Accord are published

for comment.

Quantitative Impact Study 4 Achieved

is completed. See pg 9.
35

Supervision and Consumer Protection Program Results (continued)

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

Annual Performance Goal Indicator Target Results

5. Ensure that FDIC-supervised institutions Percentage of on-site On-site examinations or Achieved.

that plan to operate under the new examinations or off-site offsite analyses are performed See pg. 9.

Basel Capital Accord are making analyses performed. for all FDIC-supervised banks 

satisfactory progress toward meeting that intend to operate under

required qualification standards. Basel II to ensure that they

are effectively working toward

meeting required qualification

standards.

6. Provide effective outreach and technical Number of Money Smart 200 additional members Achieved.

assistance on topics related to the Alliance members. are added to the Money See pg. 38.

CRA, fair lending, and community Smart Alliance.

development. 

Number of Money Smart 20,000 additional copies Achieved.

curricula distributed. of the Money Smart See pg. 38.

curricula are distributed.

200,000 additional individuals Achieved.

are taught using the Money See pg. 38.

Smart curriculum.

Number of outreach activities 125 technical assistance Achieved.

conducted with technical (examination support) efforts See pg. 38.

assistance. or banker/community outreach

activities are conducted 

related to CRA, fair lending, 

or community development.

7. Effectively meet the statutory Timely responses to written Responses are provided Achieved.

mandate to investigate and respond complaints. to 90 percent of written See pg. 17. 

to consumer complaints about FDIC- complaints within time frames

supervised financial institutions. established by policy.

8. Conduct CRA and compliance Percentage of examinations One hundred percent of Achieved.

examinations in accordance with conducted in accordance with required examinations are See pg. 13.

FDIC examination frequency policy. required time frames. conducted within time frames

established by FDIC policy.

9. Take prompt and effective supervisory Percentage of follow-up One hundred percent of Achieved.

action to monitor and address examinations or related activities follow-up examinations or See pg. 39.

problems identified during compliance conducted within required related activities are conducted

examinations of FDIC-supervised time frames. within 12 months from the

institutions that receive a 4 or 5 date of a formal enforcement

rating for compliance with consumer action to confirm that the 

protection and fair lending laws. institution is in compliance 

with the enforcement action.
36

Receivership Management Program Results 

Strategic Goal: Recovery to creditors of receivership is achieved.

Annual Performance Goal Indicator Target Results

1. Market failing institutions to all known List of qualified and interested Contact all known qualified Not

qualified and interested potential bidders. and interested bidders. Applicable.

bidders. No failures

in 2005.

2. Value, manage, and market assets of Percentage of failed institution’s Ninety percent of book Not

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

in a timely manner to maximize net marketable assets are No failures

return. marketed within 90 days in 2005.

of failure.

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

its subsidiaries toward an orderly receiverships. receiverships managed Achieved.

termination. through the Receivership See pg.40.

Oversight Program within 

three years of the failure dates.

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

potential professional liability claim claim areas for which a decision areas, a decision is made See pg.40.

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

institutions, and decide as promptly pursue the claim. within 18 months after the

as possible to close or pursue each failure date.

claim, considering the size and 

complexity of the institution.
37

Multi-Year Performance Trend

Depositor Payouts in Instance of Failure

Annual Goal 2002 Results 2003 Results 2004 Results 2005 Results

The FDIC responds promptly Timely payments made Timely payments made Timely payments made There were no failures

to financial institution closings to all depositors of the to all depositors of the to all depositors of the in 2005.

and emerging issues. 11 insured depository three insured depository four insured depository

institutions that failed institutions that failed institutions that failed

in 2002. in 2003. in 2004.

Risk Classifications

Maintain and improve the Bank Insurance Fund (BIF) BIF and SAIF reserve The FDIC completed Through September 30,

deposit insurance system. and Savings Association ratios maintained at implementation of 2005, BIF and SAIF

Insurance Fund (SAIF) or above the statutory enhancements to the reserve ratios were

reserve ratios maintained ratio of 1.25 percent. reserving process and maintained at or above

at or above the statutory Chairman testified before methodology in the statutory ratio of

ratio of 1.25 percent. the Senate Committee March 2004. BIF and 1.25 percent. 

Chairman testified before in support of deposit SAIF reserve ratios

the Senate Committee insurance reform. were maintained at

in support of deposit or above the statutory

insurance reform. ratio of 1.25 percent. 

Legislation on deposit Legislation on deposit Deposit insurance reform Congress included

insurance reform was insurance reform was remained under deposit insurance 

introduced in the House passed in the House consideration in the reform legislation in

and the Senate. and was pending in the Senate, but no action was budget reconciliation

Senate when Congress taken prior to the end legislation, S. 1932. 

recessed for the year. of the 108th Congress. The measure was

adopted by the Senate

in December and was

passed by the House 

on February 1, 2006. 

The President signed

the bill enacting

deposit insurance 

reform legislation 

on February 8, 2006. 

Risk Management, Safety and Soundness

Conduct on-site risk Conducted 2,534 or Conducted 2,421 Conducted 2,515 Conducted 2,399

management examinations 98 percent of required required safety and required safety and required safety and

to assess an FDIC-supervised safety and soundness soundness examinations soundness examinations soundness examinations

insured depository institution’s examinations. in accordance with FDIC in accordance with FDIC in accordance with FDIC

overall financial condition, policy. policy. policy.

management practices and

policies, and compliance with

applicable laws and regulations. 
38

Safety and Soundness Enforcements Actions

Annual Goal 2002 Results 2003 Results 2004 Results 2005 Results

Take prompt and effective Eighty-four institutions Seventy-three institutions Forty-four institutions Twenty-nine institutions

supervisory action to address designated as problem designated as problem designated as problem designated as problem

issues identified during the (composite “4” or “5” (composite “4” or “5” (composite “4” or “5” (composite “4” or “5”

FDIC’s examination of FDIC- rated). Forty-eight were rated). Fifty-eight with rated). Fifty-seven with rated). Thirty-six with

supervised institutions removed from problem total assets of $6.98 total assets of $6.3 total assets of $2.8

that receive a composite status and 63 were billion were removed billion were removed billion were removed

Uniform Financial Institutions added. from problem status from problem status from problem status and

Rating of “4” or “5” (problem and 47 with total assets and 28 institutions with 19 institutions with total

institution). Monitor FDIC- of $4.99 billion were total assets of $4.8 billion assets of $802 million

supervised insured depository . added. Additionally, the were added. Additionally, were added. Additionally,

institutions’ compliance FDIC issued the following the FDIC issued the the FDIC issued the

with formal and informal formal and informal following formal and following formal and

enforcement actions. enforcement actions: informal actions: informal actions: 

(Revised – 2005) 40 (5 contained BSA 38 (11 contained BSA 15 (8 contained BSA

provisions) Cease and provisions) Cease and provisions) Cease and

Desist Orders and 157 Desist Orders and 145 Desist Orders and 152

(6 contained BSA (31 contained BSA (69 contained BSA

provisions) Memoranda provisions) Memoranda provisions) Memoranda

of Understanding. of Understanding. of Understanding.

Compliance Examinations

Conduct CRA and compliance Conducted 1,840 Conducted 1,919 Conducted 2,136 Conducted 2,020

examinations in accordance comprehensive comprehensive comprehensive comprehensive

with FDIC examination compliance-only and compliance-only and compliance-only and compliance-only and

frequency policy. CRA examinations in CRA examinations in CRA examinations in CRA examinations in

(Revised -2005) accordance with FDIC accordance with FDIC accordance with FDIC accordance with FDIC

policy. There were no policy. There were no policy. There were no policy. A small number 

delinquencies in 2002. delinquencies in 2003. delinquencies in 2004. of exams were postponed

to early 2006 to give

financial institutions 

time to recover from

the effects of the

Gulf Coast hurricanes.

CRA Outreach

Provide effective outreach and Money Smart The FDIC supplied Targets for the following Targets for the following 

technical assistance on topics classes attended more than 111,000 were met: added 200 were met: added 306 

related to CRA, fair lending, by approximately copies of Money Smart new Money Smart new Money Smart

and community development. 2,800 participants. curricula to organizations. Alliance members; Alliance members;

FDIC sponsored 65 public distributed 20,000 copies distributed 95,283 copies

outreach initiatives, of Money Smart of Money Smart

111 community curriculum; additional curriculum; additional

development activities, 294,000 members 195,000 members

and 67 technical reached; and conducted reached; and conducted

assistance activities. 125 outreach and 163 outreach and

technical assistance technical assistance

activities. activities.
39

Compliance Enforcement Actions

Annual Goal 2002 Results 2003 Results 2004 Results 2005 Results

Take prompt and effective Eight of nine institutions The only “4” rated Of the five institutions Of the three institutions

supervisory action to monitor entered into a institution entered into rated “4” as of rated “4” as of

and address problems identified Memorandum of a MOU with the FDIC. December 31, 2004, December 31, 2005, 

during compliance examinations Understanding (MOU) two entered into one entered into a

of FDIC-supervised institutions with the FDIC; the ninth Memoranda of Memorandum of

that receive a “4” or “5” rating was in the process Understanding with the Understanding with 

for compliance with consumer of reviewing the FDIC; and two were the FDIC; and two are

protection and fair lending laws. recommended MOU subject to outstanding subject to outstanding

(Revised - 2005) at year-end. Cease and Desist Orders. Cease and Desist 

A Cease and Desist Orders. There are no 

Order for the fifth institutions currently 

institution was issued rated “5.”

during the second 

quarter of 2005.

Risk Management Safety and Soundness

Increase industry and The Anti-Money Laundering

regulatory awareness of (AML) goal has met

emerging/high-risk areas. targets and the advanced

(Added - 2005) training for all BSA/AML

subject matter experts

has been accomplished.

More closely align regulatory Final results of the

capital with risk in large or 4th Quantitative Impact

multinational banks. Study (QIS- 4) show

(Added –2005) a 15.5 percent decline

in minimum regulatory

capital from current levels,

with a wide dispersion in

results that was primarily

due to banks’ internal

measurement of risk,

rather than actual risk.

Basel Capital Accord

Ensure that FDIC - supervised Initial Basel II outreach

institutions that plan to operate efforts or baseline reviews

under the new Basel Capital continue at FDICAccord are making satisfactory supervised institutions

progress toward meeting that have indicated

required qualification standards. their possible intent

(Added – 2005) to opt-in for treatment

under the new rules.

FDIC is integrally involved

in domestic and international policy and implementation processes to 

help ensure a smooth 

transition to Basel II.
40

Consumer Complaints and Inquiries

Annual Goal 2002 Results 2003 Results 2004 Results 2005 Results

Meet the statutory mandate FDIC received 8,368 FDIC received 8,010 FDIC received 8,742 FDIC received 8,851

to investigate and respond consumer complaints and consumer complaints and consumer complaints, consumer complaints,

to consumer complaints closed 95 percent of them. closed 99 percent of them. closing 95 percent of closing 96 percent of

about FDIC-supervised Of the complaints closed, Of the complaints closed, them. Of the closed them. Of the closed

financial institutions. 94 percent were closed 94 percent were closed complaints, 95 percent complaints, 97 percent

within policy time frames. within policy time frames. were closed within were closed within

policy time frames. policy time frames.

Asset Management

Value, manage and market For all 11 institutions that For all three institutions Five financial institutions No financial institutions

assets of the failed institutions failed, at least 87 percent that failed, at least 98 reached their 90-day reached their 90-day

and their subsidiaries in a of all marketable assets percent of all marketable threshold during 2004. threshold during 2005.

timely manner to maximize were marketed within the assets were marketed One hundred percent

net return. 90-day time frame, thus within the 90-day time of all marketable assets

exceeding the target frame, thus exceeding were marketed within 

of 85 percent. the target of 85 percent. the 90-day time frame.

Least-Cost Resolution 

Market failing institutions There were 11 failures There were three failures There were four failures There were no failures

to all known qualified and in 2002. One hundred in 2003. One hundred in 2004. One hundred in 2005.

interested potential bidders. percent of the qualified percent of the qualified percent of the qualified

potential bidders were potential bidders were potential bidders were

contacted. contacted. contacted for the sale of

three failed institutions.

One failed institution

was not offered for sale.

Conduct investigations into all Two of six institutions Four of ten institutions All five institutions that All four institutions that

potential professional liability that reached the 18-month that reached the 18-month reached the 18-month reached the 18-month

claim areas in all failed insured milestone during 2002 had milestone during 2003 had milestone during 2004 milestone during 2005

depository institutions and 100 percent of professional 100 percent of professional had 100 percent of had 100 percent of

decide as promptly as possible liability investigations liability investigations professional liability professional liability

to close or pursue each claim completed.The other four completed. The other six investigations completed, investigations completed,

considering the size and institutions had at least institutions had at least meeting the goal meeting the goal

complexity of the institution. 80 percent of professional 80 percent of professional of 80 percent. of 80 percent.

(Revised -2005) liability investigations liability investigations

completed, meeting the completed, meeting the

goal of 80 percent. goal of 80 percent.

Manage the receivership For the eight failures For the seven failures For the four failures For the eleven failures

estate and its subsidiaries from 1999 that that occurred during that occurred during that occurred during 2002

toward an orderly termination. matured in 2002, the 2000 that matured in 2001 that matured in that matured in 2005, the

FDIC terminated six 2003, the FDIC 2004, the FDIC FDIC terminated four

receiverships, meeting terminated four terminated three receiverships. This did not

the target to terminate receiverships, below receiverships, meeting meet the target to term75 percent within three the target to terminate the target to terminate inate 75 percent within

years of failure. 75 percent within three 75 percent within three three years of failure and

years of failure. years of failure. was due to various impediments to terminations.
41

During 2005, the FDIC completed evaluations of programs designed to achieve the strategic 

objectives set forth in the Supervision Program area of the FDIC’s 2005 – 2010 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 FDIC-supervised institutions appropriately manage risk.

Objective

Issues evaluated How does the FDIC ensure that FDIC-supervised institutions appropriately manage risk?

What happens to FDIC-supervised institutions that are not appropriately managing risk?

Findings The FDIC performs safety and soundness, trust, Bank Secrecy Act, and information technology 

examinations of FDIC-supervised institutions. The examinations are conducted to assess an 

institution’s overall financial condition, management practices and policies, and compliance with 

applicable laws and regulations. Through the examination process, the FDIC also assesses the 

adequacy of management and internal control systems to identify, measure and control risks. 

If the examination process reveals weaknesses in an FDIC-supervised institution's operations 

or conditions, appropriate actions are taken. Informal or formal enforcement actions may be 

issued to the institutions that have significant weaknesses or that are operating in a deteriorated 

financial condition. The actions remain in effect until corrective actions are taken and the identified

weaknesses are corrected. If the problems remain unresolved, the FDIC may take further steps 

to encourage or compel institutions to comply.

Strategic Consumers have access to easily understood information about their rights 

Objective and the disclosures due them under consumer protection and fair lending laws. 

Issues evaluated Does the FDIC provide information to consumers about their rights and the disclosures 

due consumers under current consumer protection and fair lending laws?

Is the information easily accessible and easily understood?

Findings The FDIC undertakes an extensive and expanding number of activities to provide information 

on consumers’ rights and the disclosures due them under consumer protection and fair lending 

laws. A wide array of materials detail consumers’ rights; provide information and answers to 

questions concerning deposit insurance, banks and consumer rights; and offer practical guidance 

on how to become a better informed user of financial services. These are readily accessible and 

widely distributed on the FDIC’s Web site and at outreach seminars and workshops. Many 

materials are also available in hard copy and some in multiple languages. The FDIC also has 

been actively involved in consumer education and disclosure with the on-going support of 

programs such as Money Smart and EDIE. 

Strategic FDIC-supervised institutions comply with consumer protection, Community Reinvestment 

Objective Act (CRA), and fair lending laws.

Issues evaluated How does the FDIC ensure that FDIC-supervised institutions comply with consumer protection, 

CRA, and fair lending laws?

Findings The FDIC conducts compliance and CRA examinations to evaluate FDIC-insured institutions’ 

practices regarding these areas. In addition to the examination process, the FDIC investigates 

consumer complaints about banking practices. Noncompliance with consumer protection and fair 

lending laws can result in civil liability and negative publicity as well as informal or formal enforcement actions against the institution to correct identified violations. The FDIC also utilizes the 

institution's record of compliance with consumer protection, CRA, and fair lending laws when 

evaluating applications for new or expanded activities and certain other corporate applications.

★

★

★

★

★

Program Evaluation