FDIC Approves 2024 Operating Budget

For release

WASHINGTON — The Board of Directors of the Federal Deposit Insurance Corporation (FDIC) today approved a 2024 Operating Budget of $2.96 billion, a 6.3% decrease from the previous year’s budget. The Receivership Funding component of the budget declines by $475 million, or 57.5%, while the Ongoing Operations budget increases by $275 million (12%), from 2023. The budget also authorizes 189 new positions, most to perform the FDIC’s core mission responsibilities. Many of the new positions are being added to increase the monitoring and supervision of large banks.

“This proposed budget was formulated following this year’s three large regional bank failures and reflects the lessons learned from those failures,” said Chairman Martin J. Gruenberg. “Of particular importance, the proposed budget includes substantial new resources…to perform increased supervisory monitoring of large insured institutions on an ongoing basis to support early detection of emerging risks and quicker action to ensure that banks are taking the necessary steps to mitigate such risks.”

Chairman Gruenberg added, “The proposed budget provides additional resources to address potential risks to depositors and consumers of emerging technologies that are beginning to be used by banks, such as the use of artificial intelligence in credit underwriting models…..We will also continue…to take decisive action to address misleading representations about what products FDIC insurance covers and whether…those products are in fact insured” by the FDIC.