Mission

The FDIC contributes to stability and public

confidence in the nation’s financial system 

by insuring deposits, examining and supervising financial institutions, and managing

receiverships.

The Federal Deposit Insurance

Corporation (FDIC) is the independent

deposit insurance agency created by Congress

in 1933 to maintain stability and public 

confidence in the nation’s banking system.

In its unique role as deposit insurer of banks

and savings associations, and in cooperation

with the other state and federal regulatory

agencies, the FDIC promotes the safety and

soundness of insured depository institutions

and the U.S. financial system by identifying,

monitoring and addressing risks to the deposit

insurance funds.

The FDIC promotes public understanding and

sound public policies by providing financial

and economic information and analyses. It

minimizes disruptive effects from the failure

of banks and savings associations. It assures

fairness in the sale of financial products and

the provision of financial services.

The FDIC’s long and continuing tradition of

public service is supported and sustained by

a highly skilled and diverse workforce that

responds rapidly and successfully to changes

in the financial environment.
Vision

The FDIC is an organization dedicated 

to identifying, analyzing and addressing

existing and emerging risks in order to promote

stability and public confidence in the nation's

financial system. Financial Stewardship

The FDIC is committed to being a responsible

fiduciary in its efforts to provide insured 

institutions the best value for their contributions to the insurance funds.

Effectiveness

The FDIC’s reputation rests on its professionalism, its adherence to the highest ethical 

standards, and its skilled and dedicated 

workforce.

Responsiveness

The FDIC strives to respond rapidly, innovatively

and effectively to risks to the financial system.

It works effectively with other federal and

state supervisors to achieve consistency in

policy and regulation. It seeks and considers

information from the Congress, the financial

institution industry, individuals seeking and

receiving financial services, and others outside

the FDIC in the development of policy. The

FDIC seeks to minimize regulatory burden

while fulfilling its statutory responsibilities.

Teamwork

The FDIC promotes and reinforces a corporate

perspective and challenges its employees 

to work cooperatively across internal and

external organizational boundaries.

Fairness

The FDIC strives to treat everyone fairly 

and equitably. It exercises its responsibilities

with care and impartiality, promotes a work

environment that is free of discrimination 

and values diversity, and adheres to equal

opportunity standards.

Service

The FDIC’s long and continuing tradition

of public service is supported and sustained

by a highly skilled and diverse workforce that

responds rapidly and successfully to change. 

Integrity

The FDIC strives to perform its work with 

the highest sense of integrity, requiring the

agency to be, among other things, honest 

and fair. The FDIC can accommodate the 

honest difference of opinion; it cannot 

accommodate the compromise of principle.

Integrity is measured in terms of what is 

right and just, standards to which the FDIC 

is committed.

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Values

The FDIC has identified seven core values that guide corporate operations. The values reflect the

ideals that the FDIC expects all of its employees to strive for as they accomplish the tasks needed

to fulfill the mission. 
March 31, 2003

Sirs,

In accordance with:

● the provisions of section 17(a) of the Federal Deposit Insurance Act,

● the Chief Financial Officers Act of 1990, Public Law 101-576, and

● the Government Performance and Results Act of 1993,

the Federal Deposit Insurance Corporation is pleased to submit its 

2002 Annual Report.

Sincerely,

Donald E. Powell

Chairman

The President of the United States

The President of the United States Senate

The Speaker of the United States House of Representatives

Federal Deposit Insurance Corporation

550 17th St. NW Washington DC, 20429 Office of the Chairman
Message from the Chairman 4

Message from the Chief Financial Officer 8

I. Management’s Discussion and Analysis 10

Operations of the Corporation – The Year in Review 10

Insurance 10

Supervision 13

Receivership Management 16

Operating More Efficiently 17

Financial Highlights 19

Deposit Insurance Fund Performance 19

Corporate Budgeting 21

Capital Investment Review Committee 21

II. Performance Results 22

Summary of 2002 Performance Results by Program 22

2002 Budget and Expenditures by Program 24

Program Performance Results 25

Multi-Year Performance Trend 30

Program Evaluation 38

III. Financial Statements and Notes 39

Bank Insurance Fund (BIF) 40

Savings Association Insurance Fund (SAIF) 60

FSLIC Resolution Fund (FRF) 80

GAO’s Audit Opinion 98

Management’s Response 104

Overview of the Industry 105

IV. Management Controls 106

Material Weaknesses 107

High Vulnerability Issues 107

Matters for Continued Monitoring 108

Internal Controls and Risk Management Program 109

V. Appendixes 110

A. Key Statistics 110

B. More About the FDIC 122

C. Office of Inspector General’s Management and 

Performance Challenges Facing the FDIC 129