A budget of $2.02 billion for 2020 was approved by the federal insurer of bank deposits, resulting in a $26 million (1.3%) decrease from the prior year budget, the agency said.
In its meeting Thursday, the Federal Deposit Insurance Corp. (FDIC) Board voted to adopt the budget, which includes a 4.1% increase (of $74 million, to $1.9 billion) in its ongoing operations budget, and $43 million for the agency’s Office of Inspector General (OIG), unchanged from the previous year.
However, the budget includes a $100 million decrease (to $75 million) in its receivership funding budget for the new year – a 57.1% decrease from 2019. The funding decrease may indicate a projection for fewer bank troubles in the year ahead.
Staffing at the agency, according to the staff presentation, will be down a net 160 positions, to 5,755. The staff level reflects reductions in examiner staffing (consistent with industry consolidation, the agency said) but holds increases in large bank examiners and acquisitions services staff.
The budget projects a decline in the number of insured institutions next year, as well as the number of exams of banks, with risk management exams falling from 1,466 (in 2019) to 1,389, and compliance exams falling from 1,180 this year to 1,146 in 2020. As a result, staffing levels are also falling, FDIC said, with risk management staffing cut by 17 positions (to 1,491) and compliance staff down 18 to 436 positions.