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Letter to Stakeholders
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Printable Version
4th Quarter - 2008
This edition of our Letter to Stakeholders highlights the FDIC’s activities
during the fourth quarter of 2008. The future of banking will depend a great
deal on how bankers and their regulators embrace our role in maintaining
the public's trust, and by how we respond to the current challenges. We must
work together to re-assert the banking industry's central role as the engine
of economic growth and prosperity. For more information about the FDIC, please
visit our Web site at www.fdic.gov.
Our Priorities
Depositor Protection
- On
December 16th, the FDIC Board voted to adopt a final
rule increasing risk-based
assessment rates uniformly
by 7 basis points (7 cents for every $100 of deposits),
on an annual basis, for the first quarter of 2009. Under
the final rule, risk-based rates would range between
12 and 50 basis points (annualized) for the first quarter
2009 assessment.
- On November 21st, the FDIC Board approved a final rule to
strengthen the agency’s Temporary
Liquidity Guarantee Program. A major change
from the interim rule is that the debt guarantee will be triggered
by payment default rather than bankruptcy or receivership. As of December
31, 2008, the FDIC had collected $2.4 billion in fees based on the
reporting of the FDIC-guaranteed debt issued of which $224 billion
was outstanding.
- The Deposit Insurance Fund balance (unaudited) decreased by 45 percent
($15.7 billion) to $18.9 billion during the fourth quarter
of 2008. This decrease
is primarily
the result of an $11 billion increase in estimated losses
for future failures recorded in the fourth quarter.
- Twelve
banks failed in the fourth quarter of 2008, bringing the total failures
in 2008 to 25. These 25 institutions had total assets at failure
of $361.3 billion with estimated losses totaling $17.9 billion.
Mission Support
- On
November 12th, the FDIC and the other federal banking and thrift
regulatory agencies jointly issued the Interagency Statement
on Meeting the Needs of Creditworthy Borrowers. The statement encourages financial
institutions to support the lending needs of creditworthy borrowers,
strengthen capital, engage in loss-mitigation strategies and foreclosure-prevention
strategies with mortgage borrowers and assess the incentive implications
of compensation policies.
Resource Management
- On
December 16th, the FDIC Board approved a $2.24 billion
operating budget for 2009, an increase of $1.03 billion from 2008.
The increase
in spending is largely attributed to continuing work associated with
recent bank failures and the provision of contingency funding for
the possible continuation of an elevated number of bank failures
in 2009.
- The
FDIC Board approved an authorized 2009 FDIC staffing level of 6,269,
an increase of 1,459 positions from the staffing level authorized
at the beginning of 2008. The additional staff, most of whom will
be temporary, will primarily perform bank examinations, engage in
other bank supervisory activities and address bank failures.
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Our Key Indices
Most Current Data1
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| Insurance |
| Updated Quarterly ($ Billions) |
| |
| 9,195 |
8,989 |
8,846 |
8,692 |
8,545 |
8,315 |
| $9,086 |
$10,117 |
$10,894 |
$11,881 |
$13,051 |
$13,906 |
| $3,452 |
$3,622 |
$3,891 |
$4,154 |
$4,292 |
$4,760 |
| $46 |
$48 |
$49 |
$50 |
$52 |
$19 |
| 1.33% |
1.31% |
1.25% |
1.21% |
1.22% |
0.40% |
| 116 |
80 |
52 |
50 |
76 |
252 |
| $29.9 |
$28.3 |
$6.6 |
$8.3 |
$22.2 |
$159.4 |
| YTD |
| Total Number of FDIC Supervised Institutions |
5,257 |
5,116 |
| Bank Examinations: |
| Safety and Soundness |
2,258 |
2,416 |
| Compliance and CRA |
1,773 |
1,826 |
| Insurance & Other Applications Approved |
3,006 |
2,596 |
| Formal & Informal Enforcement Actions |
367 |
550 |
| Receiverships |
| YTD ($ Millions) |
| Deposit Insurance Fund |
| |
| 25 |
30 |
20% |
22 |
41 |
86% |
| $2,085 |
$9,481 |
355% |
$875 |
$15,073 |
1623% |
| $56 |
$432 |
671% |
$1,207 |
$1,858 |
54% |
| $252 |
$844 |
235% |
$1,647 |
$1,553 |
-6% |
| Deposit Insurance Fund |
| |
| $404 |
$1,969 |
387% |
$643 |
$2,965 |
361% |
| $1,955 |
$1,795 |
-8% |
$2,540 |
$2,072 |
-18% |
| $1,589 |
($17,825) |
-1222% |
$2,248 |
($33,524) |
-1591% |
| $57 |
$22,676 |
N/M |
$95 |
$40,226 |
N/M |
| |
| |
| $1,246 |
$1,067 |
$150 |
$29 |
4,988 |
5,721 |
| $1,231 |
$1,055 |
$150 |
$26 |
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