Letter to Stakeholders 2nd quarter
2004
Stability
Board approved maintaining the existing BIF and SAIF assessment rate schedules
for the second half of 2004.
Chairman Powell testified on the condition of the banking industry before the
Senate Committee on Banking, Housing and Urban Affairs, discussing the condition
of FDIC-insured institutions and the deposit insurance funds, the potential risks
to the banking industry, and the implications of industry consolidation.
Issued four draft papers from the Future of Banking study on the FDIC’s Web site.
These studies examined the changing role of banks in the economy, the prospects
for community banks and recent developments in small dollar payment systems.
Co-sponsored with the Treasury Department outreach meetings on “Protecting the
Financial Sector” in 15 cities. These meetings examine the security of the United
States financial sector and outline steps that banks can take to protect themselves.
Sound Policy
Vice Chairman Reich testified before the House Subcommittee on Financial Insti-
tutions and Consumer Credit and the Senate Banking Committee offering, respec-
tively, warnings that growing regulatory burden could threaten community-based
banks and recommendations for legislative changes to reduce regulatory burden.
Issued for publication with other federal bank, thrift and credit union regulatory
agencies a proposed rule under the Fair Credit Reporting Act that would incorporate
the statutory prohibition on obtaining or using medical information in connection
with credit eligibility determinations and, as required by statute, create certain
exceptions to be applied in limited circumstances.
Requested public comment, along with four other federal agencies, on a proposed
statement describing internal controls and risk-management procedures that the
agencies believe will assist financial institutions that engage in complex structured
finance activities to identify and address the risks associated with such transactions.
Announced the appointment of Paul H. Kupiec as Associate Director of the FDIC’s
Division of Insurance and Research and Co-Director of the FDIC Center for Financial
Research (CFR). He will be working with Mark J. Flannery, Co-Director of the
CFR and Bank America Eminent Scholar in Finance at the University of Florida.
Issued, along with other federal financial institutions’ supervisory agencies,
proposed guidance to assist insured depository institutions in the responsible
disclosure and administration of overdraft protection services.
Stewardship
Chairman Powell testified before the Senate Committee on Banking, Housing and
Urban Affairs on regulatory efforts to ensure compliance with the Bank Secrecy Act.
Published first issue of the Supervisory Insights journal.
Sold first quarter 2004 asset sales offerings using award-winning Web-based
system to market and sell loans over the Internet. The FDIC was recognized for
its Web-based system, “FDIC Sales.com,” by the 2003 President’s Quality Award
Program for excellence in expanding electronic government.
The Office of Internal Control Management (OICM) has become the Office of
Enterprise Risk Management (OERM). Jim Angel has been selected as the Director.
Held a meeting of the FDIC Advisory Committee on Banking Policy, with discussion
of a variety of topics including payday lending, federal preemption of state laws,
and Basel II capital requirements.
Implemented a new electronic subscription service that delivers FDIC publications
and products directly to users’ desktops, allowing the FDIC to expand its customer
base and readership while reducing hard-copy printing costs.
Our Priorities
Design: FDIC/DOA/CSB/Design and Printing Unit
Don Powell
Chairman
It has been two years since we began our quarterly Letter to Stakeholders. This
Letter, our ninth, covers the second quarter of 2004. We have received positive
feedback about our Stakeholders Letter, in which we report on our activities and
priorities, and we hope it continues to be a useful source of information for you.
For more information about the activities of the FDIC, please visit our Web site
at www.fdic.gov.
Financial data is unaudited
Data as of June 26, 2004
Q1 2003
8,114
$ 7,476
$ 2,546
$ 32.4
% 1.27
Q1 2004
7,949
$ 8,148
$ 2,587
$ 34.2
% 1.32
Q1 2003
1,216
$ 1,141
$ 868
$ 11.9
% 1.37
Q1 2004
1,181
$ 1,239
$ 914
$ 12.4
% 1.36
Q1 2003
9,330
$ 8,617
$ 3,414
$ 44.3
% 1.30
Q1 2004
9,130
$ 9,387
$ 3,501
$ 46.6
% 1.33
BIF SAIF Both Funds
Updated quarterly
($ billions)
# Insured Inst.
$ Insured Inst.
Insured Deposits
Fund Balances
Reserve Ratios
Insurance
Our Key Indices Most Current Data
6/30/2003
5,338
1,202
944
1,354
202
6/30/2004
5,288
1,342
1,087
1,514
267
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
Q2 2003
34
$ 657
$ 1,382
$ 701
Q2 2004
32
$ 313
$ 132
$ 274
Q2 2003
3
$ 402
$ 7
$ 0
Q2 2004
3
$ 329
$ 19
$ 5
Q2 2003
37
$ 1,059
$ 1,389
$ 701
Q2 2004
35
$ 642
$ 151
$ 279
BIF SAIF Both Funds
YTD
($ millions)
Total
Receiverships
Assets in
Liquidation
Collections
Dividends Paid
Receiverships
Q1 2004
$ 19
$ 340
$ 382
Q2 2004
$ 38
$ 764
$ 328
Q1 2004
$ 3
$ 122
$ 154
Q2 2004
$ 6
$ 273
$ 171
Q1 2004
$ 22
$ 462
$ 536
Q2 2004
$ 44
$ 1,037
$ 499
BIF SAIF Both Funds
YTD
($ millions)
Assessment
Income
Interest
Comprehensive
Income
Income
Total
$ 1,236
$ 523
Budget/Expenditures On Board Staff
Ongoing
Operations
$ 1,015
$ 457
($ millions)
Annual Budget
YTD Expended
Recvrship
Funding
$ 75
$ 10
Major
Investment
Funding
$ 146
$ 56
Q2 2004
5,287
Target Y/E
2004
5,425
Resources
2004
Stability
Board approved maintaining the existing BIF and SAIF assessment rate schedules
for the second half of 2004.
Chairman Powell testified on the condition of the banking industry before the
Senate Committee on Banking, Housing and Urban Affairs, discussing the condition
of FDIC-insured institutions and the deposit insurance funds, the potential risks
to the banking industry, and the implications of industry consolidation.
Issued four draft papers from the Future of Banking study on the FDIC’s Web site.
These studies examined the changing role of banks in the economy, the prospects
for community banks and recent developments in small dollar payment systems.
Co-sponsored with the Treasury Department outreach meetings on “Protecting the
Financial Sector” in 15 cities. These meetings examine the security of the United
States financial sector and outline steps that banks can take to protect themselves.
Sound Policy
Vice Chairman Reich testified before the House Subcommittee on Financial Insti-
tutions and Consumer Credit and the Senate Banking Committee offering, respec-
tively, warnings that growing regulatory burden could threaten community-based
banks and recommendations for legislative changes to reduce regulatory burden.
Issued for publication with other federal bank, thrift and credit union regulatory
agencies a proposed rule under the Fair Credit Reporting Act that would incorporate
the statutory prohibition on obtaining or using medical information in connection
with credit eligibility determinations and, as required by statute, create certain
exceptions to be applied in limited circumstances.
Requested public comment, along with four other federal agencies, on a proposed
statement describing internal controls and risk-management procedures that the
agencies believe will assist financial institutions that engage in complex structured
finance activities to identify and address the risks associated with such transactions.
Announced the appointment of Paul H. Kupiec as Associate Director of the FDIC’s
Division of Insurance and Research and Co-Director of the FDIC Center for Financial
Research (CFR). He will be working with Mark J. Flannery, Co-Director of the
CFR and Bank America Eminent Scholar in Finance at the University of Florida.
Issued, along with other federal financial institutions’ supervisory agencies,
proposed guidance to assist insured depository institutions in the responsible
disclosure and administration of overdraft protection services.
Stewardship
Chairman Powell testified before the Senate Committee on Banking, Housing and
Urban Affairs on regulatory efforts to ensure compliance with the Bank Secrecy Act.
Published first issue of the Supervisory Insights journal.
Sold first quarter 2004 asset sales offerings using award-winning Web-based
system to market and sell loans over the Internet. The FDIC was recognized for
its Web-based system, “FDIC Sales.com,” by the 2003 President’s Quality Award
Program for excellence in expanding electronic government.
The Office of Internal Control Management (OICM) has become the Office of
Enterprise Risk Management (OERM). Jim Angel has been selected as the Director.
Held a meeting of the FDIC Advisory Committee on Banking Policy, with discussion
of a variety of topics including payday lending, federal preemption of state laws,
and Basel II capital requirements.
Implemented a new electronic subscription service that delivers FDIC publications
and products directly to users’ desktops, allowing the FDIC to expand its customer
base and readership while reducing hard-copy printing costs.
Our Priorities
Design: FDIC/DOA/CSB/Design and Printing Unit
Don Powell
Chairman
It has been two years since we began our quarterly Letter to Stakeholders. This
Letter, our ninth, covers the second quarter of 2004. We have received positive
feedback about our Stakeholders Letter, in which we report on our activities and
priorities, and we hope it continues to be a useful source of information for you.
For more information about the activities of the FDIC, please visit our Web site
at www.fdic.gov.
Financial data is unaudited
Data as of June 26, 2004
Q1 2003
8,114
$ 7,476
$ 2,546
$ 32.4
% 1.27
Q1 2004
7,949
$ 8,148
$ 2,587
$ 34.2
% 1.32
Q1 2003
1,216
$ 1,141
$ 868
$ 11.9
% 1.37
Q1 2004
1,181
$ 1,239
$ 914
$ 12.4
% 1.36
Q1 2003
9,330
$ 8,617
$ 3,414
$ 44.3
% 1.30
Q1 2004
9,130
$ 9,387
$ 3,501
$ 46.6
% 1.33
BIF SAIF Both Funds
Updated quarterly
($ billions)
# Insured Inst.
$ Insured Inst.
Insured Deposits
Fund Balances
Reserve Ratios
Insurance
Our Key Indices Most Current Data
6/30/2003
5,338
1,202
944
1,354
202
6/30/2004
5,288
1,342
1,087
1,514
267
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
Q2 2003
34
$ 657
$ 1,382
$ 701
Q2 2004
32
$ 313
$ 132
$ 274
Q2 2003
3
$ 402
$ 7
$ 0
Q2 2004
3
$ 329
$ 19
$ 5
Q2 2003
37
$ 1,059
$ 1,389
$ 701
Q2 2004
35
$ 642
$ 151
$ 279
BIF SAIF Both Funds
YTD
($ millions)
Total
Receiverships
Assets in
Liquidation
Collections
Dividends Paid
Receiverships
Q1 2004
$ 19
$ 340
$ 382
Q2 2004
$ 38
$ 764
$ 328
Q1 2004
$ 3
$ 122
$ 154
Q2 2004
$ 6
$ 273
$ 171
Q1 2004
$ 22
$ 462
$ 536
Q2 2004
$ 44
$ 1,037
$ 499
BIF SAIF Both Funds
YTD
($ millions)
Assessment
Income
Interest
Comprehensive
Income
Income
Total
$ 1,236
$ 523
Budget/Expenditures On Board Staff
Ongoing
Operations
$ 1,015
$ 457
($ millions)
Annual Budget
YTD Expended
Recvrship
Funding
$ 75
$ 10
Major
Investment
Funding
$ 146
$ 56
Q2 2004
5,287
Target Y/E
2004
5,425
Resources