1
Statement by Jelena McWilliams, Chairman, Federal Deposit Insurance
Corporation, Proposed 2019 FDIC Operating Budget
Meeting of FDIC Board of Directors, Washington, DC
December 18, 2018
I am very pleased to support the proposed budget for 2019, which will allow the
FDIC to sustain and improve our operations and ensure that we can keep pace as the
banking industry evolves – all while achieving a year-over-year decrease in operating
costs.
The FDIC is charged with the vital mission of maintaining public confidence in,
and protecting the stability of, the U.S. financial system. This budget provides the
personnel and other resources needed to carry out our core mission responsibilities:
ensuring the safety and soundness of FDIC-insured financial institutions, protecting
consumers, and maintaining our readiness to resolve failing institutions, when
necessary.
I should note that this budget marks the ninth consecutive year of lower annual
operating budgets and staffing levels for the FDIC. This reflects, in large part, the
continuing steady recovery of the banking industry from the recent financial crisis. But it
also reflects the ongoing commitment of staff throughout the agency to prudently
manage the FDIC’s expenses. The demands on the FDIC will not always permit a flat
or declining budget, but we must always prioritize prudent budgeting and execution
given our responsibility to serve as good stewards of the Deposit Insurance Fund.
Statement by Jelena McWilliams, Chairman, Federal Deposit Insurance
Corporation, Proposed 2019 FDIC Operating Budget
Meeting of FDIC Board of Directors, Washington, DC
December 18, 2018
I am very pleased to support the proposed budget for 2019, which will allow the
FDIC to sustain and improve our operations and ensure that we can keep pace as the
banking industry evolves – all while achieving a year-over-year decrease in operating
costs.
The FDIC is charged with the vital mission of maintaining public confidence in,
and protecting the stability of, the U.S. financial system. This budget provides the
personnel and other resources needed to carry out our core mission responsibilities:
ensuring the safety and soundness of FDIC-insured financial institutions, protecting
consumers, and maintaining our readiness to resolve failing institutions, when
necessary.
I should note that this budget marks the ninth consecutive year of lower annual
operating budgets and staffing levels for the FDIC. This reflects, in large part, the
continuing steady recovery of the banking industry from the recent financial crisis. But it
also reflects the ongoing commitment of staff throughout the agency to prudently
manage the FDIC’s expenses. The demands on the FDIC will not always permit a flat
or declining budget, but we must always prioritize prudent budgeting and execution
given our responsibility to serve as good stewards of the Deposit Insurance Fund.
2
The proposed budget provides for increased examination resources in the
information technology area, creating 23 new positions for IT examiners and specialists.
These positions will augment our current resources for conducting IT examinations of
large banks and technology service providers.
This proposal would also allow us to add 23 new positions for large bank
supervision. The size and complexity of banks that the FDIC supervises continue to
grow. Today, 40 FDIC-supervised institutions have assets greater than $10 billion. Ten
years ago, only 23 institutions were that large; 20 years ago, only seven. The additional
staff will help us address the unique challenges these large banks present.
The budget also provides us with the resources needed to complete the buildout
and migration to a new backup data center located in Dallas. This two-year, $60 million
project launched earlier this year. When the new data center becomes operational in
mid-2019, it will address one of the key deficiencies in our IT infrastructure.
The proposed budget also provides for substantial new investments in
technology—more than $37 million in new funding next year alone. This will ensure that
the FDIC has a stable and resilient IT operations and communications infrastructure,
and will allow us to improve the capabilities of our systems. Over the next several
years, we will be able to modernize our supervisory and other business processes and
the systems that support them. Ultimately, this will help us become more efficient and
help reduce the compliance burden on FDIC-supervised institutions.
The proposed budget provides for increased examination resources in the
information technology area, creating 23 new positions for IT examiners and specialists.
These positions will augment our current resources for conducting IT examinations of
large banks and technology service providers.
This proposal would also allow us to add 23 new positions for large bank
supervision. The size and complexity of banks that the FDIC supervises continue to
grow. Today, 40 FDIC-supervised institutions have assets greater than $10 billion. Ten
years ago, only 23 institutions were that large; 20 years ago, only seven. The additional
staff will help us address the unique challenges these large banks present.
The budget also provides us with the resources needed to complete the buildout
and migration to a new backup data center located in Dallas. This two-year, $60 million
project launched earlier this year. When the new data center becomes operational in
mid-2019, it will address one of the key deficiencies in our IT infrastructure.
The proposed budget also provides for substantial new investments in
technology—more than $37 million in new funding next year alone. This will ensure that
the FDIC has a stable and resilient IT operations and communications infrastructure,
and will allow us to improve the capabilities of our systems. Over the next several
years, we will be able to modernize our supervisory and other business processes and
the systems that support them. Ultimately, this will help us become more efficient and
help reduce the compliance burden on FDIC-supervised institutions.