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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.
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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.
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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.
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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 funds—the 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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