The Federal Deposit Insurance Corporation (FDIC) today announced that the Bank Insurance Fund (BIF) reported comprehensive income (net income plus current period unrealized gains/losses on available-for-sale securities) of $1.6 billion for the 12 months ending December 31, 2000, compared to a loss of $198 million for the same period last year. Consequently, the fund balance increased to $31.0 billion at December 31, 2000.

The increase in comprehensive income over the prior year was primarily attributable to low estimated losses recognized on institutions that failed in 2000 and an increase in the market value on available-for-sale securities. BIF revenues rose 5 percent to $1.906 billion for the year, which includes $1.827 billion in interest on investments in U.S. Treasury obligations and $45 million in deposit insurance assessments.

The Savings Association Insurance Fund (SAIF) reported comprehensive income of $478 million compared to $441 million for the same period last year, increasing the fund balance to $10.8 billion at year-end 2000. SAIF revenues totaled $664 million for the year, including $644 million in interest on investments in U.S. Treasury obligations and $19 million in deposit insurance assessments.

Six BIF-insured banks failed during the year, with total assets at failure of $378 million. One SAIF-insured thrift failed during the same period, with assets at failure of $30 million.

The FSLIC Resolution Fund-Resolution Trust Corporation (FRF-RTC) made payments of $1.45 billion to the Resolution Funding Corporation (REFCORP) during the year. The proceeds were used by REFCORP to pay interest on bonds that were issued to fund early RTC thrift resolutions. Any such payments by FRF-RTC benefit the U.S. Treasury, which would otherwise be obligated to pay the interest on the bonds.

FRF assets in liquidation were reduced by 41 percent, or $208 million, to $301 million during the year. The figures the FDIC reported are unaudited.

Congress created the Federal Deposit Insurance Corporation in 1933 to restore public confidence in the nation's banking system. The FDIC insures deposits at the nation's 9,905 banks and savings associations and it promotes the safety and soundness of these institutions by identifying, monitoring and addressing risks to which they are exposed.