What is the Federal Deposit Insurance Corporation Improvement Act?

The Federal Deposit Insurance Corporation Improvement Act (FDICIA) is a law passed by the United States Congress in 1991. It established more stringent regulations and oversight for the banking industry in the United States. Specifically, FDICIA was designed to help strengthen the Federal Deposit Insurance Corporation (FDIC), the agency responsible for protecting consumers’ deposits in banks and thrift institutions. FDICIA places new responsibilities on the FDIC, including risk-based deposit insurance coverage, greater transparency of bank operations, and new deposit insurance premiums. It also gives the FDIC additional enforcement powers to assist in the resolution of insolvent banks. This includes the ability to place a bank into conservatorship or receivership, if necessary. In Georgia, FDICIA affects banks with FDIC-insured deposits. All banks must comply with FDICIA requirements, including having adequate capital, having appropriate lending policies, and meeting recordkeeping requirements, among others. Banks must also submit to FDIC examinations in order to determine the safety and soundness of their operations. Banking supervision in Georgia is handled by the Georgia Department of Banking and Finance, which works in tandem with the FDIC to ensure the safety and security of consumers’ deposits.

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What is the Federal Deposit Insurance Corporation Improvement Act?

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