Letter to Stakeholders 3rd quarter
2004
Don Powell
Chairman
Stability
Provided in the Fall 2004 FDIC Outlook in-depth analysis of the turnaround
in commercial and industrial lending (C&I) by FDIC insured institutions.
Reported in the FDIC Quarterly Banking Profile that commercial banks and savings
institutions insured by the FDIC earned net income of $31.2 billion in the second
quarter of 2004, the second highest quarterly total ever. C&I loans showed
positive growth after 13 consecutive quarters of decline.
Issued, along with other federal financial regulatory agencies, Bank Secrecy Act
procedures for examining each domestic and foreign banking organization’s customer
identification program, as required by Section 326 of the USA PATRIOT Act.
Issued, along with other federal bank, thrift and credit union regulatory agencies,
a brochure with information to help consumers identify and combat a new type
of Internet scam known as “phishing.”
Published, along with other federal bank and thrift regulatory agencies, a final
rule on capital requirements for asset-backed commercial paper programs.
Released the Fall 2004 editions of FDIC State Profiles, an executive summary
analysis of the banking and economic conditions in each state.
Sound Policy
Issued a proposed rule seeking comments on the impact of changing the definition
of a “small bank” for purposes of the Community Reinvestment Act (CRA) to
include those with total assets of up to $1 billion, regardless of holding company
affiliation, and adding a community development component to the streamlined
evaluation method for small banks with assets greater than $250 million and up
to $1 billion.
Proposed, with other federal financial regulatory agencies, regulations that would
give consumers the chance to “opt out” before a financial institution uses infor-
mation provided by an affiliated company to market its products and services
to the consumer.
Sponsored, with the Journal of Financial Services Research, an annual conference
focused on Risk Transfer and Governance in the Financial System. The conference
featured 20 research papers from leading scholars.
Hosted a conference on The Future of Community Development Banking: Banks
Helping Banks.
Published a request for comment on consumer protection regulations (other than
those related to lending) as part of our interagency regulatory burden reduction
initiative under the Economic Growth and Regulatory Paperwork Reduction Act.
Stewardship
Announced the release of our award-winning Money Smart financial education
curriculum in an interactive Computer-Based Instruction (CBI) format.
Welcomed four national Hispanic organizations to the Money Smart Alliance
program.
Michael J. Zamorski, Director of Supervision and Consumer Protection, was
honored with the Roger W. Jones Award for Executive Leadership by the
American University’s School of Public Affairs.
Selected Lee Bowman as the new National Coordinator for Community Affairs.
Selected Steve Mosier as Deputy Chief Learning Officer, Corporate University.
Our Priorities
Design: FDIC/DOA/CSB/Design and Printing Unit
We continue to position the agency to meet future challenges. On September 1, the FDIC
submitted to Congress a legislative proposal, FDIC Workforce 21 Act of 2004, designed to
provide improved flexibilities in managing our human resources. The legislation would give us
the tools to attract, retain and manage the top-quality workforce we will need to keep pace
with a changing financial services industry.
For more information about the activities of the FDIC, please visit our Web site at www.fdic.gov.
Our Key Indices Most Current Data
Financial data is unaudited
Q2 2003
8,080
$ 7,779
$ 2,562
$ 32.8
% 1.28
Q2 2004
7,926
$ 8,387
$ 2,607
$ 34.1
% 1.31
Q2 2003
1,202
$ 1,154
$ 876
$ 12.1
% 1.38
Q2 2004
1,166
$ 1,273
$ 926
$ 12.4
% 1.34
Q2 2003
9,282
$ 8,933
$ 3,438
$ 44.9
% 1.31
Q2 2004
9,092
$ 9,660
$ 3,533
$ 46.5
% 1.32
BIF SAIF Both Funds
Updated quarterly
($ billions)
# Insured Inst.
$ Insured Inst.
Insured Deposits
Fund Balances
Reserve Ratios
Insurance
9/30/2003
5,343
1,872
1,440
2,090
381
9/30/2004
5,284
1,985
1,629
2,299
467
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 2003
32
$ 444
$ 1,473
$ 876
Q3 2004
32
$ 276
$ 185
$ 318
Q3 2003
2
$ 381
$ 31
$ 2
Q3 2004
3
$ 327
$ 21
$ 5
Q3 2003
34
$ 825
$ 1,504
$ 878
Q3 2004
35
$ 603
$ 206
$ 323
BIF SAIF Both Funds
YTD
($ millions)
Total
Receiverships
Assets in
Liquidation
Collections
Dividends Paid
Receiverships
Q2 2004
$ 38
$ 764
$ 328
Q3 2004
$ 67
$ 1,158
$ 685
Q2 2004
$ 6
$ 273
$ 171
Q3 2004
$ 7
$ 414
$ 283
Q2 2004
$ 44
$ 1,037
$ 499
Q3 2004
$ 74
$ 1,572
$ 968
BIF SAIF Both Funds
YTD
($ millions)
Assessment
Income
Interest
Comprehensive
Income
Income
Total
$ 1,212
$ 784
Budget/Expenditures On Board Staff
Ongoing
Operations
$ 1,015
$ 690
($ millions)
Annual Budget
YTD Expended
Recvrship
Funding
$ 75
$ 15
Major
Investment
Funding
$ 122
$ 79
Q3 2004
5,246
Target Y/E
2004
5,425
Resources
2004
Don Powell
Chairman
Stability
Provided in the Fall 2004 FDIC Outlook in-depth analysis of the turnaround
in commercial and industrial lending (C&I) by FDIC insured institutions.
Reported in the FDIC Quarterly Banking Profile that commercial banks and savings
institutions insured by the FDIC earned net income of $31.2 billion in the second
quarter of 2004, the second highest quarterly total ever. C&I loans showed
positive growth after 13 consecutive quarters of decline.
Issued, along with other federal financial regulatory agencies, Bank Secrecy Act
procedures for examining each domestic and foreign banking organization’s customer
identification program, as required by Section 326 of the USA PATRIOT Act.
Issued, along with other federal bank, thrift and credit union regulatory agencies,
a brochure with information to help consumers identify and combat a new type
of Internet scam known as “phishing.”
Published, along with other federal bank and thrift regulatory agencies, a final
rule on capital requirements for asset-backed commercial paper programs.
Released the Fall 2004 editions of FDIC State Profiles, an executive summary
analysis of the banking and economic conditions in each state.
Sound Policy
Issued a proposed rule seeking comments on the impact of changing the definition
of a “small bank” for purposes of the Community Reinvestment Act (CRA) to
include those with total assets of up to $1 billion, regardless of holding company
affiliation, and adding a community development component to the streamlined
evaluation method for small banks with assets greater than $250 million and up
to $1 billion.
Proposed, with other federal financial regulatory agencies, regulations that would
give consumers the chance to “opt out” before a financial institution uses infor-
mation provided by an affiliated company to market its products and services
to the consumer.
Sponsored, with the Journal of Financial Services Research, an annual conference
focused on Risk Transfer and Governance in the Financial System. The conference
featured 20 research papers from leading scholars.
Hosted a conference on The Future of Community Development Banking: Banks
Helping Banks.
Published a request for comment on consumer protection regulations (other than
those related to lending) as part of our interagency regulatory burden reduction
initiative under the Economic Growth and Regulatory Paperwork Reduction Act.
Stewardship
Announced the release of our award-winning Money Smart financial education
curriculum in an interactive Computer-Based Instruction (CBI) format.
Welcomed four national Hispanic organizations to the Money Smart Alliance
program.
Michael J. Zamorski, Director of Supervision and Consumer Protection, was
honored with the Roger W. Jones Award for Executive Leadership by the
American University’s School of Public Affairs.
Selected Lee Bowman as the new National Coordinator for Community Affairs.
Selected Steve Mosier as Deputy Chief Learning Officer, Corporate University.
Our Priorities
Design: FDIC/DOA/CSB/Design and Printing Unit
We continue to position the agency to meet future challenges. On September 1, the FDIC
submitted to Congress a legislative proposal, FDIC Workforce 21 Act of 2004, designed to
provide improved flexibilities in managing our human resources. The legislation would give us
the tools to attract, retain and manage the top-quality workforce we will need to keep pace
with a changing financial services industry.
For more information about the activities of the FDIC, please visit our Web site at www.fdic.gov.
Our Key Indices Most Current Data
Financial data is unaudited
Q2 2003
8,080
$ 7,779
$ 2,562
$ 32.8
% 1.28
Q2 2004
7,926
$ 8,387
$ 2,607
$ 34.1
% 1.31
Q2 2003
1,202
$ 1,154
$ 876
$ 12.1
% 1.38
Q2 2004
1,166
$ 1,273
$ 926
$ 12.4
% 1.34
Q2 2003
9,282
$ 8,933
$ 3,438
$ 44.9
% 1.31
Q2 2004
9,092
$ 9,660
$ 3,533
$ 46.5
% 1.32
BIF SAIF Both Funds
Updated quarterly
($ billions)
# Insured Inst.
$ Insured Inst.
Insured Deposits
Fund Balances
Reserve Ratios
Insurance
9/30/2003
5,343
1,872
1,440
2,090
381
9/30/2004
5,284
1,985
1,629
2,299
467
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 2003
32
$ 444
$ 1,473
$ 876
Q3 2004
32
$ 276
$ 185
$ 318
Q3 2003
2
$ 381
$ 31
$ 2
Q3 2004
3
$ 327
$ 21
$ 5
Q3 2003
34
$ 825
$ 1,504
$ 878
Q3 2004
35
$ 603
$ 206
$ 323
BIF SAIF Both Funds
YTD
($ millions)
Total
Receiverships
Assets in
Liquidation
Collections
Dividends Paid
Receiverships
Q2 2004
$ 38
$ 764
$ 328
Q3 2004
$ 67
$ 1,158
$ 685
Q2 2004
$ 6
$ 273
$ 171
Q3 2004
$ 7
$ 414
$ 283
Q2 2004
$ 44
$ 1,037
$ 499
Q3 2004
$ 74
$ 1,572
$ 968
BIF SAIF Both Funds
YTD
($ millions)
Assessment
Income
Interest
Comprehensive
Income
Income
Total
$ 1,212
$ 784
Budget/Expenditures On Board Staff
Ongoing
Operations
$ 1,015
$ 690
($ millions)
Annual Budget
YTD Expended
Recvrship
Funding
$ 75
$ 15
Major
Investment
Funding
$ 122
$ 79
Q3 2004
5,246
Target Y/E
2004
5,425
Resources