About

Its main goal is to provide deposit insurance to depositors in US banks and thrift institutions in order to maintain stability and public confidence in the nation's banking system. The FDIC accomplishes this by insuring deposits up to a certain amount, currently set at $250,000 per depositor, per insured bank. In addition to deposit insurance, the FDIC also serves as the primary federal supervisor and regulator of around 4,500 state-chartered banks that are not members of the Federal Reserve System. It also plays a vital role in resolving failed financial institutions and managing their assets. This is done through its receivership functions, where it takes over control of failed banks, protects insured depositors, and liquidates the assets to repay creditors and uninsured depositors. The history of the FDIC is marked by significant financial crises and reform efforts. It was initially created as a response to the widespread bank failures of the Great Depression. Over the years, the FDIC has undergone various legislative and regulatory changes to adapt to the evolving banking industry and address emerging risks. It has played a crucial role in stabilizing the banking sector during major economic downturns, such as the Savings and Loan crisis of the 1980s and the financial crisis of 2007-2008. The FDIC is governed by a board of directors, consisting of the Comptroller of the Currency, the director of the Consumer Financial Protection Bureau, the chair of the Board of Governors of the Federal Reserve System, and two appointed by the President of the United States and confirmed by the Senate. It operates using funds generated from insurance premiums paid by member banks and thrift institutions. These funds, along with its authority to borrow from the Treasury, enable the FDIC to fulfill its mission without relying on taxpayer funding. Overall, the FDIC is an essential institution in maintaining the stability and confidence of the US banking system. Its deposit insurance and regulatory functions serve to protect depositors, promote sound banking practices, and contribute to the overall health of the economy.