What is FDIC insurance?

FDIC insurance stands for Federal Deposit Insurance Corporation insurance. It provides protection to individual depositors and lenders in the case of a bank failure. In the state of Oregon, banks and other financial institutions must have FDIC insurance in order to operate. This insurance is mandated by the federal government, so banks in Oregon must abide by the rules. The FDIC is a federal government-run agency that protects banks and their customers from losses caused by the failure of an insured bank or savings institution. The insurance covers up to $250,000 per individual and per financial institution. This insurance covers deposits such as checking and savings accounts, certificates of deposit, money market accounts, and other related accounts. When a bank or savings and loan fails, the FDIC steps in to protect the customers’ deposits. It acts as custodian to the bank’s assets and takes over the operation of the failed bank. It then works to make sure that customers will receive their deposits back. The FDIC is backed by the full faith and credit of the U.S. government, so customers’ assets are safe even if the bank fails.

Related FAQs

How does the Sarbanes-Oxley Act affect bank governance?
What is the Federal Reserve System?
What is the Payment Card Industry Data Security Standard?
What are the requirements for creating a bank?
What is the Bank Holding Company Act?
What is the Equal Credit Opportunity Act?
What is the National Bankruptcy Reform Act?
What is the difference between a bank and a mortgage lender?
What is the Consumer Leasing Act?
What is the Home Mortgage Disclosure Act?

What is FDIC insurance?

Related FAQs

Related Blog Posts