Federal Deposit Insurance Corporation

Overview

The Federal Deposit Insurance Corporation (FDIC) is an independent agency of the federal government established by Congress under the Banking Act of 1933 (Glass-Steagall Act) to maintain stability and public confidence in the nation's financial system. The FDIC insures deposits at more than 4,000 financial institutions, directly supervises and examines approximately 2,950 state-chartered banks that are not members of the Federal Reserve System, manages receiverships of failing banks, and works to make large and complex financial institutions resolvable. Since 1934, no depositor has lost a single penny of FDIC-insured funds due to bank failure. The FDIC is funded entirely by assessments paid by member banks and savings associations—it receives no Congressional appropriations.

Basic Identity

Classification

Inclusion Justification

What This Entity Oversees

All 20 Regulatory Domains

Geographic and Jurisdictional Coverage

The FDIC exercises binding regulatory authority over:

• All 50 U.S. States and U.S. territories through insured member institutions
• Federal jurisdiction (headquarters-based oversight)
• Cross-border activities of member institutions under interagency coordination

Institutional Coverage

Direct Supervision:

• Approximately 2,950 state-chartered banks NOT members of the Federal Reserve System (state non-member banks)
• Operates direct examination authority over these institutions

Insurance Authority:

• Over 4,000 insured depository institutions (including national banks, state member banks, and state non-member banks)
• Backup examination authority over Fed-member banks and national banks when needed

Receivership Authority:

• All insured depository institutions that fail are placed in FDIC receivership
• Authority to manage liquidation, asset sales, and depositor claims

Regulatory Instruments

1. Examination and Supervision: Continuous risk-based examination of member institutions
2. Rulemaking: 12 CFR Parts 300-399 (FDIC regulations)
3. Enforcement: Cease-and-desist orders, removal of officers/directors, civil money penalties
4. Guidance: Supervisory letters, examination handbooks, bulletins, policies
5. Resolution Authority: Receivership, purchase and assumption arrangements, bridge bank authority
6. Insurance Operations: Premium setting, coverage determinations, depositor claim processing

Payments and Money Movement Relevance

Payment Systems Oversight

The FDIC supervises member institutions' participation in and reliance on payment and settlement systems:

Settlement and Clearance Authority

The FDIC's Resolution Handbook (Section on Settlement) addresses:

• Management of settlement operations during receiverships
• Assumption Institution's settlement point of contact protocols
• Processing of adjustments and corrections post-bank failure
• Settlement Agent procedures for up to 364 days post-closure
• Reimbursement and correction of errors during resolution

Money Movement and Liquidity

The FDIC examines:

• Liquidity management and contingency funding plans
• Intraday liquidity needs and payment system reliance
• Correspondent banking relationships and access to payment system participants
• Third-party payment processor agreements and oversight
• Deposit funding concentration and withdrawal risk
• Access to Federal Reserve discount window facilities

Regulatory Powers

Regulatory Role and Function

Legal Foundation

Licensing and Authorization Relevance

FDIC's Role in Institution Authorization

The FDIC does not directly license state banks—that authority rests with state banking regulators. However, the FDIC has critical authority over insured status and operates the Deposit Insurance Fund.

Key Thresholds and Triggers

• Capital Falling Below Well-Capitalized: Triggers PCA actions and heightened supervision
• Capital Below Undercapitalized: Mandatory supervisory actions; capital plan requirements
• Capital Below Significantly Undercapitalized: Regulatory agency must take action
• Capital Below Critically Undercapitalized: Mandatory receiver/conservator appointment within 90 days (with rare exceptions)

Payments and Money Movement Relevance

Content for this section is being enriched from official sources. The YAML Front Matter - Core Metadata in United States of America has regulatory functions documented in adjacent sections of this profile.

Payment Systems Governed or Overseen

The YAML Front Matter - Core Metadata does not directly operate payment systems. Its payment-related role includes:

Money transmitters, payment processors, and fintech companies operating in this jurisdiction require licensing or registration with this entity.

Relationship to Other Regulators

Formal Coordination Mechanisms

1. Interagency Policy Statements: Joint statements on supervision, enforcement, lending practices
2. Supervisory Coordination: Regular meetings between agencies; shared examination planning
3. Enforcement Coordination: Notice of actions; voluntary coordination on multi-agency enforcement
4. Regulatory Standards: Joint development of examination procedures and policies through FFIEC
5. Payment System Oversight: Coordination on Fedwire, ACH, and other systemically important systems
6. Resolution Planning: Coordination on living wills and resolution readiness for large institutions

Geography and Jurisdiction Notes

Important Departments and Divisions

Organizational Structure

The FDIC operates through the following major divisions (as of 2024):

Regional Organization

The FDIC operates 7 regions with field offices:

• Atlanta Region: Alabama, Florida, Georgia, Louisiana, Mississippi, North Carolina, South Carolina, Tennessee
• Boston Region: Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, Vermont
• Chicago Region: Illinois, Indiana, Iowa, Michigan, Minnesota, Missouri, North Dakota, Ohio, South Dakota, Wisconsin
• Dallas Region: Arkansas, Colorado, Kansas, Mississippi, New Mexico, Oklahoma, Tennessee, Texas, Wyoming
• Kansas City Region: Colorado, Kansas, Missouri, Nebraska, Oklahoma, Wyoming
• Memphis Region: Arkansas, Louisiana, Mississippi, Tennessee
• New York Region: Delaware, New Jersey, New York, Pennsylvania, Puerto Rico, U.S. Virgin Islands
• San Francisco Region: Alaska, Arizona, California, Guam, Hawaii, Idaho, Montana, Nevada, Oregon, Utah, Washington

Key Public Resources

Official FDIC Publications and Resources

Contact Information

Notes on Naming and Language

Official Naming Conventions

Language Considerations

• Official Language: English (all publications, regulations, guidance)
• Multilingual Resources: Limited; primarily English materials
• Translation Policy: Some consumer materials available in Spanish for deposit insurance information
• Terminology: Adheres to Federal Banking Agency standardized terminology (FFIEC conventions)
• Regulatory Style: Formal administrative language; statutory text uses Technical Corrections Act conventions

Related Terms and Abbreviations

• FDIC Insurance: Deposit insurance coverage provided by the corporation
• Insured Bank/Institution: Any depository institution insured by FDIC
• CDIC: Canadian Deposit Insurance Corporation (different entity; Canada)
• DGIF: Deposit Guarantee Insurance Fund (used by other jurisdictions)
• BIF: Bank Insurance Fund (FDIC component, 1989-2006; merged into DIF)
• SAIF: Savings Association Insurance Fund (FDIC component, 1989-2006; merged into DIF)
• DIF: Deposit Insurance Fund (current unified fund)