WASHINGTON–On the same day NCUA was announcing an increase for its 2020 budget, the FDIC announced a decrease. The FDIC board has approved a 2020 budget of $2.02 billion, a reduction of $26 million (1.3%) from 2019.
As CUToday.info reported here, the NCUA board has approved a 2020 operating fund budget of $315.8 million and a 2021 operating budget of $327.9 million. The overall 2020 budget marks a 3.8% budget increase over 2019.
According to the FDIC, its 2020 budget includes a 4.1% increase ($74 million to $1.9 billion) in its ongoing operations budget, and $43 million for its Office of Inspector General (OIG), which is unchanged from 2019. The FDIC is seeing a decrease of $100 million (to $75 million) in its receivership funding budget for the new year, an indicator the FDIC sees few troubled banks or bank failures in the year ahead.
The FDIC said it is also reducing its net headcount by 160 to 5,755 employees (compared with 1,180 at NCUA), saying the reductions reflect the consolidation taking place among banks.
Similar to credit unions, the FDIC is projecting a decline in the number of insured institutions in 2020.