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What is the Federal Deposit Insurance Corporation (FDIC)?
The Federal Deposit Insurance Corporation (FDIC), www.fdic.gov is an independent agency created by the Congress to maintain stability and public confidence in the nation’s financial system. The FDIC insures deposits; examines and supervises financial institutions for safety, soundness, and consumer protection; makes large and complex financial institutions resolvable; and manages receiverships. The FDIC has several high-level programs that support its stakeholders, including bankers, consumers, and analysts.
FDIC insurance is backed by the full faith and credit of the United States government, according to the agency. Since the FDIC was established in 1933, no depositor has lost one penny of FDIC-insured accounts. The standard insurance amount is $250,000 per depositor, per insured bank, for each account ownership category. The FDIC manages the Deposit Insurance Fund to insure the deposits, protect the depositors of insured banks, and resolve failed banks. It also fosters communication and coordination among other countries’ deposit insurance systems.
In carrying out the functions of examining and supervising Banks, FDIC staff conduct off-site monitoring and on-site examinations to assess risk and promote prudent banking practices. Examinations identify whether banks operate in a safe and sound manner and comply with consumer protection laws. During any given week, the FDIC may be examining more than 200 banks. Additionally, as the FDIC is the preeminent source for data on individual banks, its staff delivers timely statistics and analyses on topics ranging from banking to consumer protection.
The FDIC typically responds to more than 13,000 inquiries each month from consumers and financial professionals about deposit insurance coverage. Its website contains extensive information on deposit insurance, consumer protection, and banking.
History of the FDIC
On June 16, 1933, President Franklin Roosevelt signed the Banking Act of 1933, a part of which established the FDIC. The first Board of Directors of the Federal Deposit Insurance Corporation was sworn in at the Treasury Department, Washington, D.C., on September 11, 1933. On July 5, 1934, Mrs. Lydia Lobsiger received the first federal deposit insurance disbursement, following the failure of the Fond Du Lac State Bank in East Peoria, Illinois.