Established by Congress in June 1933 in response to the failure
of more than 9,000 banks between the stock market crash of October
1929 and March 1933.
An independent agency of the federal government, the FDIC is governed
by a five-member board of directors appointed by the president and
confirmed by the Senate. The FDIC is subject to audits by the General
Accounting Office and oversight by Congress.
The FDIC, like the Federal Reserve System, receives no congressional
appropriations to carry out its mission as a deposit insurer and
banking regulator. The money for these purposes comes from deposit
insurance premiums paid by banks and savings associations and from
earnings on investments in U.S. Treasury Securities.
When FDIC insurance began Jan. 1, 1934, coverage was limited to $2,500
per depositor. Over time, Congress increased the coverage limit and
in March 1980 raised it to its current $100,000.
- The FDIC administers two federal insurance fundsthe Bank Insurance
Fund (BIF) and the Savings Association Insurance Fund (SIAF); both programs
are backed by the full faith of the U.S. government.
- The FDIC is the primary federal regulator of about 6,000 state-chartered
nonmember banks (commercial and savings banks that are not members of
the Federal Reserve System).
More information on the FDIC.
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