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Letter to Stakeholders
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Printable Version
3rd Quarter - 2007
This edition of our Letter
to Stakeholders highlights the FDIC’s activities and accomplishments
during the third quarter of 2007. As we enter the final quarter,
the banking industry remains strong, despite persistent troubles in the
subprime mortgage
market. We are continuing to work with other regulators in urging
banks and mortgage servicers to restructure loans, where feasible, to avoid
foreclosure
and keep consumers in their homes. For more information about the
FDIC, please visit our Web site at www.fdic.gov.
Our Priorities
Depositor Protection
- FDIC-insured commercial banks and savings institutions reported
net income of $36.7 billion in the second quarter of 2007,
$1.3 billion (3.4 percent) below the level one year ago but still the fourth
best quarterly
earnings ever reported.
- Estimated insured deposits decreased
by $11.3 billion in the second quarter of 2007. The Deposit
Insurance Fund (DIF) balance
increased by $482 million (0.9 percent) to $51.2 billion. The
ratio of the DIF to
estimated insured deposits increased by one basis point, ending
the second quarter of 2007 at 1.21 percent.
- The DIF earned assessment income of $140 million in the second
quarter of 2007. The FDIC estimates that assessment income
earned increased to $170 million in the third quarter of 2007.
- The
FDIC was appointed receiver of NetBank, Alpharetta, Georgia, on September
28, 2007. The failed
bank was an Internet bank
and did not have any physical branches. Depositors
of NetBank became
depositors of ING Bank, FSB, Wilmington, Delaware.
Mission Support
- The federal financial regulatory agencies and the Conference
of State Bank Supervisors issued the Statement on Loss
Mitigation Strategies for Servicers of Residential Mortgages, encouraging institutions (federal & state
supervised) to pursue strategies to mitigate losses
while preserving homeownership for borrowers that are delinquent
or in default, or are
in imminent risk of default, to the extent possible and appropriate.
- The FDIC – working through its new Alliance for Economic
Inclusion (AEI) initiative – and the NeighborWorks® Center
for Foreclosure Solutions have partnered to promote
foreclosure-prevention strategies for consumers at risk of foreclosure
from
subprime and nontraditional mortgage lending. The
partnership will focus its efforts in nine markets
around the country that are served by both organizations.
- The FDIC and the Peoples’ Bank
of China signed a Memorandum
of Understanding (MOU) forging an international
working relationship
to develop and expand methods of interaction on economic
and financial issues. The MOU is a positive step in establishing
a deposit insurance
system in China.
- In
July, the FDIC convened its second meeting of the Advisory
Committee on Economic Inclusion (ComE-IN) focusing
on the subprime mortgage situation.
- FDIC hosted the first executive training program sponsored by
the International Association of Deposit Insurers in July 2007. The four-day
conference which drew 35 representatives from 23 countries was an opportunity
to focus on two main topics – developing effective claims
and recoveries processes and creating effective deposit insurance
agencies.
- In
August, the FDIC hosted a national conference for federally insured minority
depository institutions with presentations that included “Broadening
Access to the Financial Mainstream” and “The
Power of Partnerships; Opportunities for NeighborWorks ® and
Minority Community Bankers.”
Resource Management
- The
FDIC issued a special edition of FDIC
Consumer News featuring “51
Ways to Save Hundreds on Loans and Credit Cards.” The article offers simple, practical tips that
can help consumers
cut the costs of borrowing
money.
- The FDIC
Quarterly reported on the results of two studies – the
feasibility and consequences of privatizing deposit insurance and the
effectiveness of the FDIC’s Money
Smart financial education
program.
Our Key Indices
Most Current Data1
Insurance |
Updated Quarterly ($ Billions) |
|
9,482 |
9,282 |
9,092 |
8,881 |
8,790 |
8,626 |
$8,048 |
$8,934 |
$9,660 |
$10,485 |
$11,539 |
$12,278 |
$3,310 |
$3,438 |
$3,532 |
$3,758 |
$4,040 |
$4,230 |
$42.5 |
$44.9 |
$46.5 |
$48.0 |
$49.6 |
$51.2 |
1.28% |
1.31% |
1.32% |
1.28% |
1.23% |
1.21% |
136 |
125 |
102 |
74 |
50 |
61 |
$39.7 |
$31.8 |
$25.9 |
$21.7 |
$5.5 |
$23.1 |
YTD |
Total Number of FDIC Supervised Institutions |
5,243 |
5,210 |
Bank Examinations: |
Safety and Soundness |
1,811 |
1,706 |
Compliance and CRA |
1,517 |
1,347 |
Insurance & Other Applications Approved |
2,414 |
2,304 |
Formal & Informal Enforcement Actions |
333 |
300 |
Receiverships |
YTD ($ Millions) |
Deposit Insurance Fund |
|
26 |
24 |
-8% |
26 |
25 |
-4% |
$351 |
$321 |
-9% |
$345 |
$2,085 |
504% |
$57 |
$47 |
-18% |
$74 |
$56 |
-24% |
$116 |
$252 |
117% |
$116 |
$252 |
117% |
Deposit Insurance Fund |
|
$12 |
$234 |
1,850% |
$22 |
$404 |
1,736% |
$1,143 |
$1,315 |
15% |
$1,765 |
$1,955 |
11% |
$967 |
$1,062 |
10% |
$1,395 |
$1,589 |
14% |
|
|
$1,122 |
$1,032 |
$75 |
$15 |
4,560 |
4,725 |
$732 |
$717 |
$6 |
$9 |
|
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