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ANNUAL REPORT

FEDERAL DEPOSIT INSURANCE CORPORATION

550 17th Street NW, Washington, DC 20429 OFFICE OF THE CHAIRMAN

February 15, 2018

Dear Sir,

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, 

♦ the Government Performance and Results Act of 1993 (as amended) and the GPRA 

Modernization Act of 2010,

♦ the provisions of Section 5 (as amended) of the Inspector General Act of 1978, 

♦ the Reports Consolidation Act of 2000, and

♦ the provisions of the Fraud Reduction and Data Analytics Act of 2015,

the Federal Deposit Insurance Corporation (FDIC) is pleased to submit its 2017 Annual Report (also referred 

to as the Performance and Accountability Report), which includes the audited financial statements of the Deposit 

Insurance Fund and the Federal Savings and Loan Insurance Corporation (FSLIC) Resolution Fund. 

In accordance with the Reports Consolidation Act of 2000, the FDIC assessed the reliability of the performance 

data contained in this report. No material inadequacies were found, and the data are considered to be complete 

and reliable. 

Based on internal management evaluations, and in conjunction with the results of independent financial statement 

audits, the FDIC can provide reasonable assurance that the objectives of Section 2 (internal controls) and Section 

4 (financial management systems) of the Federal Managers’ Financial Integrity Act of 1982 have been achieved, 

and that the FDIC has no material weaknesses. We are committed to maintaining effective internal controls 

corporate-wide in 2018. 

Sincerely,

Martin J. Gruenberg

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
ANNUAL REPORT 2017 3

2017

TABLE OF CONTENTS

Message from the Chairman..............................................................................................................................5

Message from the Chief Financial Officer .......................................................................................................17

FDIC Senior Leaders.......................................................................................................................................19

I. Management’s Discussion and Analysis................................................................................................21

The Year in Review..................................................................................................................................23

Overview.........................................................................................................................................................23

Deposit Insurance............................................................................................................................................23

Supervision .....................................................................................................................................................24

Supervision Policy............................................................................................................................................30

Financial Technology .......................................................................................................................................32

Community Banking Initiatives.......................................................................................................................33

Activities Related to Systemically Important Financial Institutions ..................................................................39

Depositor and Consumer Protection................................................................................................................45

Receivership Management ...............................................................................................................................52

Enhancing the FDIC’s IT Security...................................................................................................................55

Minority and Women Inclusion.......................................................................................................................57

International Outreach ...................................................................................................................................59

Effective Management of Strategic Resources...................................................................................................60

II. Performance Results Summary..............................................................................................................63

Summary of 2017 Performance Results by Program.........................................................................................65

Performance Results by Program and Strategic Goal ........................................................................................67

Prior Years’ Performance Results ......................................................................................................................73

III. Financial Highlights ................................................................................................................................83

Deposit Insurance Fund Performance..............................................................................................................85

IV. Budget and Spending..............................................................................................................................89

FDIC Operating Budget..................................................................................................................................91

2017 Budget and Expenditures by Program ....................................................................................................92

Investment Spending .......................................................................................................................................93

V. Financial Section.....................................................................................................................................95

Deposit Insurance Fund (DIF) ........................................................................................................................96

FSLIC Resolution Fund (FRF)......................................................................................................................112

Government Accountability Office Auditor’s Report......................................................................................120

Management’s Report on Internal Control Over Financial Reporting ............................................................125

Management’s Response to the Auditor’s Report............................................................................................126

VI. Risk Management and Internal Controls..............................................................................................127

Fraud Reduction and Data Analytics Act of 2015 ..........................................................................................129

Management Report on Final Actions............................................................................................................130

VII. Appendices............................................................................................................................................133

A. Key Statistics ...........................................................................................................................................135

B. More About the FDIC ............................................................................................................................149

C. Implementation of Key Regulations ........................................................................................................158

D. Office of Inspector General’s Assessment of the Management and Performance 

Challenges Facing the FDIC....................................................................................................................161

E. Acronyms ................................................................................................................................................198
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 the U.S. financial system and insured 

depository institutions by identifying, monitoring, and addressing risks to the 

Deposit Insurance Fund.

The FDIC promotes public understanding and the development of sound 

public policy by providing timely and accurate financial and economic 

information and analyses. It minimizes disruptive effects from the failure of 

financial institutions and assures fairness in the sale of financial products and 

the provision of financial services.

The FDIC’s long and continuing tradition of excellence in public service 

is supported and sustained by a highly skilled and diverse workforce that 

continuously monitors and responds rapidly and successfully to changes in the 

financial environment. 

At the FDIC, we are working together to be the best.

INSURING DEPOSITS ♦ EXAMINING AND SUPERVISING INSTITUTIONS ♦

MAKING LARGE AND COMPLEX FINANCIAL INSTITUTIONS RESOLVABLE ♦

MANAGING RECEIVERSHIPS ♦ EDUCATING CONSUMERS