Bank Insurance Fund


Also found in: Acronyms.

Bank Insurance Fund (BIF)

Bank Insurance Fund

Also called the BIF. A pool of money created in 1989 by the FDIC to insure deposits made by banks that are members of the Federal Reserve System. The BIF was created to separate bank insurance money from thrift insurance money (which came from the Savings Association Insurance Fund). While this was likely beneficial for a time because of the savings and loan crisis, it created a perverse incentive for banks and thrifts to reclassify themselves as the other (i.e. a bank to a thrift or a thrift to a bank), depending on which fund had lower fees at a given time. This led to the passage of the Federal Deposit Insurance Act of 2005, which abolished the Savings Association Insurance Fund and the BIF and created a single Deposit Insurance Fund.

Bank Insurance Fund

The federal fund administered by the Federal Deposit Insurance Corporation, which insures the deposits of individuals who invest at banks that are members of the Federal Reserve System. This includes all national banks and state banks that choose to join the Fed. The fund was created in 1989 in order to separate the insurance funds for commercial banks from those that insure thrift institutions.

Bank Insurance Fund

The new name of the former fund of the Federal Deposit Insurance Corporation (FDIC).The FDIC is still alive and kicking,only the fund has changed names.

References in periodicals archive ?
The premium increases were adopted to help reduce the $7 billion deficit in the federal bank insurance fund.
Insured deposit growth in 2001 and 2002, coupled with the increased costs associated with bank and thrift failures, had a detrimental effect on the FDIC's Bank Insurance Fund (BIF) and Savings Association Insurance Fund (SAIF).
House Banking Committee chairman Jim Leach (R-lowa) told members attending the American Institute of CPAs national conference on savings institutions that before the end of the year the House and the Senate would consider legislation to consolidate the Bank Insurance Fund (BIF) with the Savings Association Insurance Fund (SAIF).
Depositors are generally unaware, and indeed should be unconcerned, about the Bank Insurance Fund (BIF) versus SAIF.
Treasury in order to replenish the federal bank insurance fund (which provides protection for bank accounts up to $100,000 in size).
In February 2005, we issued our opinions on the calendar year 2004 financial statements of the Bank Insurance Fund (BIF), the Savings Association Insurance Fund (SAIF), and the FSLIC Resolution Fund (FRF).
Insured deposit growth in 2000 and 2001, coupled with increased costs associated with bank and thrift failures, had a detrimental effect on the Bank Insurance Fund (BIF) and Savings Association Insurance Fund (SAIF) of the Federal Deposit Insurance Corporation.
Pushed by the urgency to provide a cash transfusion to the hemorrhaging federal bank insurance fund (which insures deposits in the event of a bank failure), and by a scheduled adjournment date only a couple of weeks away, both the House and Senate are scrambling to regroup.
GAO is required to annually audit the financial statements of the Bank Insurance Fund (BIF), Savings Association Insurance Fund (SAIF), and FSLIC Resolution Fund (FRF), which are administered by the Federal Deposit Insurance Corporation (FDIC).
By year-end 1991, the cost of resolving these failures and reserving for expected losses had nearly drained the industry's Bank Insurance Fund (BIF) and had prompted the Congress to enact major banking legislation.
Early in 1991, the GAO gave Congress several recommendations for strengthening the regulatory environment and recapitalizing the Bank Insurance Fund (the fund administered by the FDIC for federal deposit insurance of banks).
In February 2004, we issued our opinions on the calendar year 2003 financial statements of the Bank Insurance Fund (BIF), the Savings Association Insurance Fund (SAIF), and the FSLIC Resolution Fund (FRF).