WASHINGTON – The Federal Deposit Insurance Corp.’s board has approved a 2022 Operating Budget of $2.262 billion. The decision comes during the same week in which the NCUA board will consider the agency’s own budget—during its meeting today—and a week after it hosted a budget briefing.
In addition to reviewing the Normal Operating Level of the NCUSIF today, the NCUA board also has on its meeting agenda:
- Final rule, parts 702 and 703, Complex Credit Union Leverage Ratio
- Final rule, part 703, mortgage servicing assets
- NCUA’s 2022-2023 budget
- Final rule, parts 702 and 741, subordinated debt
The meeting will begin at 10 a.m. ET, and will be streamed live on NCUA.gov. CUToday.info will provide complete coverage.
FDIC Budget Adds Personnel
The FDIC 2022 budget is 0.7% lower than its 2021 budget, even though it includes increases in a number of areas, including for personnel.
The FDIC’s 2022 Operating Budget includes $2.140 billion for ongoing operations, $75 million for receivership funding, and $47.0 million for the Office of the Inspector General (OIG). The board also approved an authorized 2022 staffing level of 5,897 positions, a net increase of 44 positions from 2021.
During the recent NCUA budget briefing, the credit union trade groups questioned why the agency was seeking to add positions at the same time the number of credit unions continues to shrink.
In announcing its budget, the FDIC said the slight decrease in proposed spending was “largely due to the elimination of the increased contingency reserves approved by the board for 2021 to ensure the FDIC’s readiness to be able to respond quickly to potential supervisory or resolutions issues related to the ongoing pandemic” from the coronavirus.
The FDIC said a $25 million Corporate Unassigned contingency reserve is included in the ongoing operations budget, while the decrease in receivership funding is the result of the elimination of the $100 million contingency reserve designed to deal with needs resulting from the financial impact of the coronavirus crisis.
Update on Insurance Fund
During its most recent meeting, the FDIC board also heard an update on the restoration plan it adopted in 2020 to bring the reserve ratio of the Deposit Insurance Fund (DIF) to 1.35% of total insured deposits. The insurance fund’s reserve ratio stood at 1.27% as of Sept. 30.