Letter to Stakeholders
This is our second edition of the Letter to Stakeholders. Feedback from our
first letter, issued in July, was overwhelmingly positive. Thank you for your candid
and timely comments. This letter highlights our 3rd quarter performance.
For additional information, I encourage you to visit our Web site at: www.fdic.gov.
▼Financial data is unaudited
3rd quarter
2002
Don Powell
Chairman
Protect the Funds
● Presented case for comprehensive deposit insurance reform in speeches,
banker outreach sessions, and Capitol Hill visits.
● Chairman Powell addressed the Risk Management Association on
The Challenges of Risk Management in Today’s Environment.
● Selected designated examiners to enhance FDIC’s risk monitoring of
the eight largest insured institutions.
● Announced the June 30, 2002, BIF Reserve Ratio rise to 1.26% and
SAIF to 1.38%.
Sound Management
● Hired Steve App, formerly Treasury Department Deputy CFO, as the
FDIC Chief Financial Officer.
● Selected an Accenture /Peoplesoft business solution as the next
FDIC financial management system.
● Concluded 2002 buyout/retirement incentive programs achieving
a reduction of 699 staff and $80 million projected savings in future
operating costs.
● Completed YTD, 485 expedited examinations of well-managed/
well-capitalized banks under $250 million, resulting in a reduction
of the average exam time on these institutions by more than 20%.
● Analyzed over 400 regulatory burden comments to help improve
efficiency and support to the financial services industry.
Consumer Education
● Money Smart outreach efforts have resulted in alliances with over
350 national and regional organizations and requests for almost 20,000
copies of the Money Smart curriculum.
● Showcased Money Smart at four national civil rights conventions and
continue to finalize agreements for the program’s use by these organizations.
● Addressed predatory lending in the summer 2002 publication of FDIC
Consumer News.
Policy Leadership
● Hosted two roundtable sessions with data providers and users on
enhancing public disclosure in financial institutions.
● Selected charter members of the FDIC Advisory Committee on Banking
Policy.
● Sponsored a symposium entitled The Rise of Risk Management: Basel
and Beyond to explore the evolution of risk management systems and
discuss the issues regulators face.
● Hosted officials from the Peoples Bank of China and the Turkish Banking
Industry with an overview of the U.S. deposit insurance/regulatory
environment, and provided technical and management assistance
to developing nations including Serbia.
Q2 2001
8,448
$ 6,650
$ 2,383
$ 31.7
% 1.33
Q2 2002
8,226
$ 6,985
$ 2,483
$ 31.2
% 1.26
Q2 2001
1,317
$ 994
$ 773
$ 10.8
% 1.40
Q2 2002
1,256
$ 1,063
$ 820
$ 11.3
% 1.38
Q2 2001
9,765
$ 7,644
$ 3,156
$ 42.5
% 1.35
Q2 2002
9,482
$ 8,048
$ 3,303
$ 42.5
% 1.29
BIF SAIF Both Funds
Updated quarterly
($ billions)
# Insured Inst.
$ Insured Inst.
Insured Deposits
Fund Balances
Reserve Ratios
Insurance
Our Priorities Our Key Indices Most Current Data▼
9/30/2001
5,546
1,997
1,632
2,054
363
9/30/2002
5,417
2,018
1,376
2,030
307
YTD
Total Number of FDIC Supervised Institutions
Bank Examinations:
Safety and Soundness
Compliance and CRA
Insurance and Other Applications Approved
Formal and Informal Enforcement Actions
Supervision
Q3 2001
3
$ 54
$ 5
$ 156
Q3 2002
8
$ 2,415
$ 623
$ 991
Q3 2001
1
$ 2,300
$ 450
$ 189
Q3 2002
1
$ 50
1
$ 421
Q3 2001
4
$ 2,354
$ 455
$ 345
Q3 2002
9
$ 2,465
$ 624
$ 1,412
BIF SAIF Both Funds
YTD
($ millions)
Receiverships
Added
Assets at Failure
Est. Cost to Funds
Non Cash Assets
in Liquidation
Receiverships
Q2 2002
$ 36
$ 868
$ 748
Q3 2002
$ 62
$ 1,272
$ 944
Q2 2002
$ 11
$ 284
$ 388
Q3 2002
$ 18
$ 421
$ 651
Q2 2002
$ 47
$ 1,152
$ 1,136
Q3 2002
$ 80
$ 1,693
$ 1,595
BIF SAIF Both Funds
YTD
($ millions)
Assessment
Income
Interest
Comprehensive
Income
Income
CY 2002
$ 1,216
YTD
$ 928
Expended
YTD
$ 886
Y/E 2001
6,229
Q3 2002
5,826
Projected
Y/E 2002
5,575
Budget On Board Staff
YTD
($ millions)
Totals
Resources
Design: FDIC/DOA/CSB/Design and Printing Unit
●
Data as of September 21, 2002●
This is our second edition of the Letter to Stakeholders. Feedback from our
first letter, issued in July, was overwhelmingly positive. Thank you for your candid
and timely comments. This letter highlights our 3rd quarter performance.
For additional information, I encourage you to visit our Web site at: www.fdic.gov.
▼Financial data is unaudited
3rd quarter
2002
Don Powell
Chairman
Protect the Funds
● Presented case for comprehensive deposit insurance reform in speeches,
banker outreach sessions, and Capitol Hill visits.
● Chairman Powell addressed the Risk Management Association on
The Challenges of Risk Management in Today’s Environment.
● Selected designated examiners to enhance FDIC’s risk monitoring of
the eight largest insured institutions.
● Announced the June 30, 2002, BIF Reserve Ratio rise to 1.26% and
SAIF to 1.38%.
Sound Management
● Hired Steve App, formerly Treasury Department Deputy CFO, as the
FDIC Chief Financial Officer.
● Selected an Accenture /Peoplesoft business solution as the next
FDIC financial management system.
● Concluded 2002 buyout/retirement incentive programs achieving
a reduction of 699 staff and $80 million projected savings in future
operating costs.
● Completed YTD, 485 expedited examinations of well-managed/
well-capitalized banks under $250 million, resulting in a reduction
of the average exam time on these institutions by more than 20%.
● Analyzed over 400 regulatory burden comments to help improve
efficiency and support to the financial services industry.
Consumer Education
● Money Smart outreach efforts have resulted in alliances with over
350 national and regional organizations and requests for almost 20,000
copies of the Money Smart curriculum.
● Showcased Money Smart at four national civil rights conventions and
continue to finalize agreements for the program’s use by these organizations.
● Addressed predatory lending in the summer 2002 publication of FDIC
Consumer News.
Policy Leadership
● Hosted two roundtable sessions with data providers and users on
enhancing public disclosure in financial institutions.
● Selected charter members of the FDIC Advisory Committee on Banking
Policy.
● Sponsored a symposium entitled The Rise of Risk Management: Basel
and Beyond to explore the evolution of risk management systems and
discuss the issues regulators face.
● Hosted officials from the Peoples Bank of China and the Turkish Banking
Industry with an overview of the U.S. deposit insurance/regulatory
environment, and provided technical and management assistance
to developing nations including Serbia.
Q2 2001
8,448
$ 6,650
$ 2,383
$ 31.7
% 1.33
Q2 2002
8,226
$ 6,985
$ 2,483
$ 31.2
% 1.26
Q2 2001
1,317
$ 994
$ 773
$ 10.8
% 1.40
Q2 2002
1,256
$ 1,063
$ 820
$ 11.3
% 1.38
Q2 2001
9,765
$ 7,644
$ 3,156
$ 42.5
% 1.35
Q2 2002
9,482
$ 8,048
$ 3,303
$ 42.5
% 1.29
BIF SAIF Both Funds
Updated quarterly
($ billions)
# Insured Inst.
$ Insured Inst.
Insured Deposits
Fund Balances
Reserve Ratios
Insurance
Our Priorities Our Key Indices Most Current Data▼
9/30/2001
5,546
1,997
1,632
2,054
363
9/30/2002
5,417
2,018
1,376
2,030
307
YTD
Total Number of FDIC Supervised Institutions
Bank Examinations:
Safety and Soundness
Compliance and CRA
Insurance and Other Applications Approved
Formal and Informal Enforcement Actions
Supervision
Q3 2001
3
$ 54
$ 5
$ 156
Q3 2002
8
$ 2,415
$ 623
$ 991
Q3 2001
1
$ 2,300
$ 450
$ 189
Q3 2002
1
$ 50
1
$ 421
Q3 2001
4
$ 2,354
$ 455
$ 345
Q3 2002
9
$ 2,465
$ 624
$ 1,412
BIF SAIF Both Funds
YTD
($ millions)
Receiverships
Added
Assets at Failure
Est. Cost to Funds
Non Cash Assets
in Liquidation
Receiverships
Q2 2002
$ 36
$ 868
$ 748
Q3 2002
$ 62
$ 1,272
$ 944
Q2 2002
$ 11
$ 284
$ 388
Q3 2002
$ 18
$ 421
$ 651
Q2 2002
$ 47
$ 1,152
$ 1,136
Q3 2002
$ 80
$ 1,693
$ 1,595
BIF SAIF Both Funds
YTD
($ millions)
Assessment
Income
Interest
Comprehensive
Income
Income
CY 2002
$ 1,216
YTD
$ 928
Expended
YTD
$ 886
Y/E 2001
6,229
Q3 2002
5,826
Projected
Y/E 2002
5,575
Budget On Board Staff
YTD
($ millions)
Totals
Resources
Design: FDIC/DOA/CSB/Design and Printing Unit
●
Data as of September 21, 2002●