FDIC approves $2.092 billion budget for 2018, down 3% from 2017

by Talk Business & Politics staff ([email protected]) 151 views 

The Board of Directors of the Federal Deposit Insurance Corp. (FDIC) approved a $2.092 billion operating budget for 2018, a 3% decrease from 2017 and 48% less than the 2010 peak at the height of the financial crisis. The board approved the budget on Tuesday (Dec. 19). The board also approved reducing the staff size by 4.5% to 6,076 positions in 2018, from 2017. The decrease in staff is 34% less than the 2011 peak.

“This is the eighth consecutive reduction in the FDIC’s annual operating budget and staffing,” FDIC Chairman Martin Gruenberg said. “These reductions are made possible by continuing steady improvement in the health of the U.S. banking industry as well as the FDIC’s efforts to carefully manage resources. The FDIC remains focused on fulfilling its mission while prudently managing costs.”

The operating budget includes $1.827 billion for ongoing operations, $225 million for receivership funding and $40.097 million for the Office of the Inspector General. The 2018 budget is $65.690 million less than the 2017 budget largely because of reduced resource requirements for receivership funding, down 25% from 2017. The Office of the Inspector General budget increased 9.1% from 2017, and the operations component of the budget rose 0.3%.

The staff size was reduced by 287 positions, including 21 permanent positions and 266 non-permanent positions, from the 6,363 positions authorized for 2017.

The budget also allocated additional funding for IT security, a priority for the FDIC. As of Sept. 30, the FDIC insured deposits at 5,738 banks and savings associations across the nation.