What is the Federal Deposit Insurance Corporation Improvement Act?

The Federal Deposit Insurance Corporation Improvement Act (FDICIA) is a U.S. federal law enacted in 1991 that governs the banking industry. In Texas, FDICIA sets standards for state-chartered banks to meet in order to be eligible for deposit insurance from the Federal Deposit Insurance Corporation (FDIC). FDICIA seeks to promote the soundness and stability of state-chartered banks, protect consumers, and enhance public confidence in the financial system. It does this by requiring banks to maintain a certain level of capital, or financial resources, to ensure they have adequate funds to cover potential losses. FDICIA also requires banks to have better loan policies and procedures and limits the ways in which they can invest customer funds. Additionally, FDICIA mandates that banks have sufficient internal controls, reporting systems, and audit procedures in place to ensure compliance with regulations. The law provides for the FDIC to inspect banks every 12 to 18 months to make sure they are meeting the requirements of FDICIA. By requiring banks to follow strict regulations, FDICIA has helped make banking more safe and secure for customers throughout Texas. FDICIA has also bolstered public confidence in the banking system and helped ensure that banks are operating in a manner that is best for the public and the economy.

Related FAQs

What is the purpose of the Uniform Commercial Code?
What is the Fair Debt Collection Practices Act?
What is the Fair Debt Collection Practices Act?
What is the Truth in Lending Act?
What is the Right to Financial Privacy Act?
What is the Federal Trade Commission Act?
What is the Bankruptcy Abuse Prevention and Consumer Protection Act?
What is the Home Mortgage Disclosure Act?
What is the Fair Credit Billing Act?
What is the Gramm-Leach-Bliley Act?

What is the Federal Deposit Insurance Corporation Improvement Act?

Related FAQs

Related Blog Posts