Remarks by
Jelena McWilliams
Chairman
Federal Deposit Insurance Corporation
“Trust through Transparency”
at the
Federal Reserve System, Conference of State Bank Supervisors, and
Federal Deposit Insurance Corporation
2018 Community Banking in the 21st Century Research and Policy Conference
St. Louis, MO
October 3, 2018
Jelena McWilliams
Chairman
Federal Deposit Insurance Corporation
“Trust through Transparency”
at the
Federal Reserve System, Conference of State Bank Supervisors, and
Federal Deposit Insurance Corporation
2018 Community Banking in the 21st Century Research and Policy Conference
St. Louis, MO
October 3, 2018
1
Introduction
Good afternoon.
Today, I’m going to talk to you about steps the FDIC is taking to strengthen the trust between
the agency, other regulators, the public, and banks through transparency and accountability.
I have been in my role as chairman of the FDIC for just about four months now. My journey to
the FDIC began as a child in the former Yugoslavia, under a system of government that was
more opaque than transparent – and where those in power could not be challenged.
Today, I am blessed to live and work in an open, democratic system built upon the public’s
trust. We, as Americans, entrust in our government the power to lead. In return, we expect the
government to be fair and open, and to work to advance the public good.
When we trust the system, we feel a part of it. It is our government. On the other hand, distrust
breaks down relationships, whether it is between a business entity and its customers, manager
and employee, or government and citizen. When taken to the extreme, it can lead to the
breakdown of institutions.
Like any asset, trust must be earned and then preserved. In my view, the best way to maintain a
trusting relationship is to be accessible, understandable, and responsive — to provide your
stakeholders with the information and means to hold you accountable.
And it is these principles that form the foundation for a new initiative at the FDIC that we are
calling “Trust through Transparency.”
The Need to Focus on Trust
In recent years, there have been signs of declining trust in public institutions. Surveys by the
Pew Research Center show public trust in government at near historic lows. Over the past
decade, roughly 20 percent of Americans said they could trust the federal government to do
what is right “always” or “most of the time.”1
Fixing the broken trust felt by the other 80 percent of Americans will not be easy, but, like any
solution, it begins with recognizing that trust is a two-way street.
Abraham Lincoln is credited with saying: “The people, when rightly and fully trusted, will return
the trust.” And research on transparency and accountability at all levels of government bears
this out. Among the positive outcomes of transparency and accountability are increased public
participation,2,3 more stable economic growth, positive development, and less conflict.4 A study
1 Pew Research Center. “Public Trust in Government: 1958-2017.” Available at: http://www.people-
press.org/2017/12/14/public-trust-in-government-1958-2017.
2 Vanessa Williamson and Norman Eisen. (2016) The Impact of Open Government: Assessing the Evidence.
Brookings Institution Center for Effective Public Management Working Paper. Available at:
https://www.brookings.edu/wp-content/uploads/2016/12/gs_20161208_opengovernment_report.pdf.
Introduction
Good afternoon.
Today, I’m going to talk to you about steps the FDIC is taking to strengthen the trust between
the agency, other regulators, the public, and banks through transparency and accountability.
I have been in my role as chairman of the FDIC for just about four months now. My journey to
the FDIC began as a child in the former Yugoslavia, under a system of government that was
more opaque than transparent – and where those in power could not be challenged.
Today, I am blessed to live and work in an open, democratic system built upon the public’s
trust. We, as Americans, entrust in our government the power to lead. In return, we expect the
government to be fair and open, and to work to advance the public good.
When we trust the system, we feel a part of it. It is our government. On the other hand, distrust
breaks down relationships, whether it is between a business entity and its customers, manager
and employee, or government and citizen. When taken to the extreme, it can lead to the
breakdown of institutions.
Like any asset, trust must be earned and then preserved. In my view, the best way to maintain a
trusting relationship is to be accessible, understandable, and responsive — to provide your
stakeholders with the information and means to hold you accountable.
And it is these principles that form the foundation for a new initiative at the FDIC that we are
calling “Trust through Transparency.”
The Need to Focus on Trust
In recent years, there have been signs of declining trust in public institutions. Surveys by the
Pew Research Center show public trust in government at near historic lows. Over the past
decade, roughly 20 percent of Americans said they could trust the federal government to do
what is right “always” or “most of the time.”1
Fixing the broken trust felt by the other 80 percent of Americans will not be easy, but, like any
solution, it begins with recognizing that trust is a two-way street.
Abraham Lincoln is credited with saying: “The people, when rightly and fully trusted, will return
the trust.” And research on transparency and accountability at all levels of government bears
this out. Among the positive outcomes of transparency and accountability are increased public
participation,2,3 more stable economic growth, positive development, and less conflict.4 A study
1 Pew Research Center. “Public Trust in Government: 1958-2017.” Available at: http://www.people-
press.org/2017/12/14/public-trust-in-government-1958-2017.
2 Vanessa Williamson and Norman Eisen. (2016) The Impact of Open Government: Assessing the Evidence.
Brookings Institution Center for Effective Public Management Working Paper. Available at:
https://www.brookings.edu/wp-content/uploads/2016/12/gs_20161208_opengovernment_report.pdf.