The FDIC Board today is considering a proposed 2023 Operating Budget that represents a 6.5 percent increase over last year’s budget.
The additional resources in this budget are targeted on the workforce of the FDIC to recruit, hire, and retain the diverse pool of highly qualified people the agency needs to carry out its mission, and IT investments to meet the operational and information security needs of the FDIC.
The FDIC recently reached agreement in principle with the FDIC’s employee union on a new three-year Compensation Agreement that will increase compensation to reflect the impact that higher inflation has had on current salaries. It will also help to maintain comparability of compensation for FDIC employees relative to other federal banking agencies consistent with the Financial Institutions Reform, Recovery, and Enforcement Act of 1989.
In addition, the proposed budget authorizes 220 new positions primarily to carry out the FDIC’s bank supervision and other core mission responsibilities. A number of factors are particularly impacting the need for additional safety and soundness and consumer compliance examiners including the increasing size and complexity of the institutions the FDIC supervises, the downside risks to the banking system in the current uncertain economic environment, the large number of retirement-eligible examiners, and the time needed to develop new commissioned examiners.
Finally, the proposed budget continues the substantial investments the FDIC has been making for a number of years to modernize and enhance the FDIC’s information technology infrastructure and protect the sensitive data that the FDIC maintains.
I would add that this budget also includes funding for a public information campaign on deposit insurance next year when the FDIC celebrates its 90th anniversary. Particularly in light of some of the confusing claims that are being made about FDIC deposit insurance coverage of non-traditional assets, it is more important than ever that the American public understands clearly what is protected by deposit insurance.
I would like to thank the FDIC staff for their collaborative work across the agency to formulate a thoughtful and forward-looking budget and staffing proposal for 2023. This proposed budget includes resources to address the immediate challenges facing the FDIC, as well as longer term investments for the future of the agency.
I am pleased to support this proposed budget.