Each depositor insured to at least $250,000 per insured bank

Subscribe

The FDIC Board of Directors approves an annual Corporate Operating Budget to fund the operations of the Corporation. The Corporate Operating Budget consists of two components, Ongoing Operations and Receivership Funding. The Receivership Funding component of the operating budget includes funds for all resolutions and receivership management activities, except the costs associated with the core permanent staff that is maintained to perform these functions regardless of the level of failure activity.

The FDIC also has a separate Investment Budget that is composed of individual project budgets approved by the Board of Directors for major investment projects. Budgets for investment projects are approved on a multi-year basis, and funds for an approved project may be carried over from year to year until the project is completed, but may not be used for any other purpose.

The Corporate Operating Budget provides resources for the operations of the Corporation’s three major programs or business lines — Insurance, Supervision, and Receivership Management — as well as its major program support functions (legal, administrative, financial, information technology, etc.).

Expenditures from the Corporate Operating and Investment Budgets are paid almost entirely from the Deposit Insurance Fund (DIF) managed by the FDIC. The DIF is funded by deposit insurance premiums paid by insured financial institutions as well as interest earned on the investment of those funds. In addition, individual receiverships managed by the Corporation reimburse the insurance funds for services provided by the FDIC.

During 2013, the FDIC will continue to focus on its core mission responsibilities to protect depositors in insured financial institutions, supervise state-chartered banks and thrift institutions that are not members of the Federal Reserve System, and manage receiverships established in conjunction with the failure of insured financial institutions.

The Ongoing Operations budget remained essentially flat from 2012 to 2013.  Although temporary staffing and related costs will decline in the examination function, reflecting a continuing gradual improvement in the financial condition of community banks, resources were added to the budget to establish the infrastructure needed to fulfill the FDIC’s new responsibility under Title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act to resolve a large, systemically- important bank holding company or non-bank financial company.

While a substantial amount of residual receivership management workload remains in conjunction with insured institution failures since 2008, the Receivership Funding budget declined by $600 million (or 40 percent) from 2012 to 2013. The largest contributing factor in the Receivership Funding budget reduction is the expected decline in institutional failures that will reduce both the number of temporary employees and the volume of outside contractual services required.

The Board of Directors approved the 2013 Corporate Operating Budget on December 11, 2012. For more information on that budget as well as projected 2013 spending from the Investment Budget, please click on the link below.

• Budget by Major Expense Category and Budget Component