Federal Deposit Insurance Corporation

"FDIC" redirects here. For other uses, see FDIC (disambiguation).

Federal Deposit Insurance Corporation
FDIC

Headquarters on 17th Street NW in Washington, D.C.
Agency overview
FormedJune 16, 1933; 91 years ago (1933-06-16)
JurisdictionFederal government of the United States
Employees6,096 (2024)[1]
Annual budget$1.96 billion (2024)[2]
Agency executive
Websitewww.fdic.gov
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The Federal Deposit Insurance Corporation (FDIC) is a United States government corporation supplying deposit insurance to depositors in American commercial banks and savings banks.[7]: 15  The FDIC was created by the Banking Act of 1933, enacted during the Great Depression to restore trust in the American banking system. More than one-third of banks failed in the years before the FDIC's creation, and bank runs were common.[7]: 15 [8] The insurance limit was initially US$2,500 per ownership category, and this has been increased several times over the years. Since the enactment of the Dodd–Frank Wall Street Reform and Consumer Protection Act in 2010, the FDIC insures deposits in member banks up to $250,000 per ownership category.[9] FDIC insurance is backed by the full faith and credit of the government of the United States, and according to the FDIC, "since its start in 1933 no depositor has ever lost a penny of FDIC-insured funds".[10][11]

The FDIC is not supported by public funds; member banks' insurance dues are its primary source of funding.[12] The FDIC charges premiums based upon the risk that the insured bank poses.[13] When dues and the proceeds of bank liquidations are insufficient, it can borrow from the federal government, or issue debt through the Federal Financing Bank on terms that the bank decides.[13]

As of June 2024, the FDIC provided deposit insurance at 4,539 institutions.[14] As of Q2 2024, the Deposit Insurance Fund stood at $129.2 billion.[1]

The FDIC also examines and supervises certain financial institutions for safety and soundness, performs certain consumer-protection functions, and manages receiverships of failed banks. Quarterly reports are published indicating details of the banks' financial performance,[6] including leverage ratio (but not CET1 Capital Requirements & Liquidity Coverage Ratio as specified in Basel III).

  1. ^ a b c "Statistics At A Glance". FDIC. Archived (PDF) from the original on 6 September 2024. Retrieved 6 September 2024.
  2. ^ "FDIC: Deposit Insurance Press Release FY24" (Press release). FDIC. Retrieved February 23, 2024.
  3. ^ FDIC Quarterly - Quarterly Banking Profile: Second Quarter 2024 (PDF) (Report). Vol. 19. 2024.
  4. ^ FDIC Quarterly: Second Quarter Banking Profile (PDF) (Report). Vol. 16. 2024.
  5. ^ FDIC Quarterly - Quarterly Banking Profile: Fourth Quarter 2021 (PDF) (Report). Vol. 16. 2021.
  6. ^ a b FDIC Quarterly - Quarterly Banking Profile: Second Quarter 2022 (PDF) (Report). Vol. 16. 2022.
  7. ^ a b Van Loo, Rory (August 1, 2018). "Regulatory Monitors: Policing Firms in the Compliance Era". Faculty Scholarship. 119 (2): 369.
  8. ^ Walter 2005, p. 39.
  9. ^ "FDIC insurance limit of $250,000 is now permanent". The Boston Globe. Archived from the original on October 2, 2012.
  10. ^ "FDIC: Understanding Deposit Insurance".
  11. ^ "FDIC: When a Bank Fails - Facts for Depositors, Creditors, and Borrowers". FDIC.
  12. ^ Bovenzi 2015, p. 69.
  13. ^ a b Ellis, Diane. "Deposit Insurance Funding: Assuring Confidence" (PDF). FDIC.
  14. ^ "Statistics At A Glance" (PDF). FDIC. Archived (PDF) from the original on 4 February 2024. Retrieved 4 June 2024.