What Does Federal Deposit Insurance Corporation Mean?
The Federal Deposit Insurance Corporation (FDIC) is a United States government corporation created in 1933. Its main mission is to maintain the public’s confidence in the country’s financial system, and its primary role is to insure deposits and protect depositors against bank failure.
Insuranceopedia Explains Federal Deposit Insurance Corporation
An independent agency of the government, the FDIC insures the deposits of its member banks and thrift institutions for up to $250,000 per depositor, per member-bank. It is important to note that only member banks and thrift institutions can avail of the benefits offered by FDIC.
The FDIC was created in response to the numerous bank failures that happened in the 1920s and 1930s. As of 2015, it has more than 4,500 member banks that it directly supervises to ensure the promotion of sound banking practices.