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FDIC approves $2.68 billion 2013 operating budget

Martin Gruenberg

The FDIC’s board of directors approved a $2.68 billion operating budget for 2013 on Tuesday, an 18.2 percent decrease from the 2012 budget.

“The budget approved is consistent with the slow but steady recovery in the U.S. banking industry over the past three years,” Martin Gruenberg, the chairman of the FDIC, said.

The board also approved a 2013 staffing level of 8,026 employees, fewer than the 8,713 currently authorized. The FDIC plans to make additional staff reductions in 2014 and future years.

The budget includes $1.78 billion for the FDIC’s operations, a 0.1 percent increase from 2012, and $900 million for receivership funding, a 40 percent decrease from the 2012 receivership funding budget as a result of reduced resource requirements.

Receivership funding provides funding for expenses incurred as a result of the failure or near-failure of institutions insured by the FDIC and the management of receiverships resulting from such failures.

The FDIC said that it will “continue to focus on its historic mission responsibilities, including supervision of a large number of insured depository institutions in troubled or problem financial condition and the management of the large number of open receiverships established in conjunction with the failure of IDIs since 2008.”

The number of institutions supervised by the FDIC fell by 18.4 percent from 5,527 in 2007 to 4,511 in 2012.

“Although the number of failures has dropped substantially since 2010, industry consolidation is expected to continue to reduce the number of FDIC-supervised institutions in 2013 and beyond,” the FDIC said in its proposed budget. “The FDIC’s resolutions and receivership management workload is also expected to decline substantially in 2013.”

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