Deposit insurance

(redirected from FDIC Deposit Insurance)

Deposit insurance

Deposit Insurance

A guarantee by some organization that funds in a bank deposit will be available to the account holder. That is, if the bank becomes insolvent, insured deposits are safe and depositors will be able to access them. Deposit insurance is made by a government-sponsored organization such as the FDIC. Deposit insurance exists in order to reduce pressures that might result in bank runs.
References in periodicals archive ?
Treasury, were, according to Admati and Hellwig (2013), driven by misguided regulations, including FDIC deposit insurance.
First, we review the DD model and show how FDIC deposit insurance differs from the model in several key respects.
The increase in other expenses primarily resulted from increases in salaries and employee benefits expense, advertising and marketing costs and FDIC deposit insurance premiums, which were partially offset by lower amounts of professional fees and loan and other real estate owned expense.
The experience of uninsured banks in Kansas is notable in that FDIC deposit insurance was one of the key banking reforms adopted in response to the banking crisis of the early 1930s.
Global Banking News-2 February 2010-US calls for increasing FDIC deposit insurance fund(C)2010 ENPublishing - http://www.
The five failures will cost the FDIC deposit insurance fund an estimated $401.
Bank runs were associated with the failure of WaMu and Wachovia, (33) and were prominently featured in the press following the FDIC's closure of IndyMac, (34) even though insured depositors' funds were safe under the FDIC deposit insurance guarantee.
A temporary increase in FDIC deposit insurance was instituted in 1934, and made permanent in 1935.
There are myriad rules concerning FDIC deposit insurance, including a recent temporary increase in deposit coverage.
FDIC deposit insurance is backed by the full faith and credit of the United States government.
Passage of this new legislation in general, and the Congressional action increasing the FDIC deposit insurance limits in particular, should help restore U.