On the back of more and more banks facing foreclosures, at the fastest pace seen in 17 years, the Federal Deposit Insurance Corp. today announced that it will be boosting the 2010 budget by
56% to a new high figure of $4 Billion, to manage further shutdowns more effectively.

In all, the budget will rise from the previous figure of $2.6 Billion, and the budget to handle bank failures in particular will almost double from $1.3 Billion to $2.5 Billion. The budget proposal has been approved by the FDIC board approved in Washington. In addition, the agency staff will rise from 7,010 for this year to 8,653 next year.

"The budget will ensure that we are prepared to handle an ever-larger number of bank failures next year, if that becomes necessary, and to provide regulatory oversight for an even larger number of troubled institutions", FDIC Chairman Sheila Bair said.

For the current year, bank foreclosures have hiked to 133, the highest figure recorded since 1992. Under the situation, the FDIC's move is being viewed as a much positive development.

FDIC, in addition to expecting more banks to fail in 2010, is also estimating that the number of "at-risk" banks will also hike.