3. Overview of the FDIC
3.1 What is the FDIC?
The FDIC preserves and promotes public confidence in the U.S. financial system by insuring deposits in banks and thrift institutions by identifying, monitoring, and addressing risks to the deposit insurance funds; and by limiting the effect on the economy and the banking industry when a financial institution fails. An independent agency of the federal government, the FDIC was created in 1933 in response to the thousands of bank failures that occurred in the 1920s and early 1930s. Since the start of FDIC insurance on January 1, 1934, no depositor has lost a single cent of insured funds as a result of a bank failure.
The standard insurance amount is $250,000 per depositor, per insured bank or thrift, for each account ownership category. The FDIC receives no Congressional appropriations – it is funded by premiums that financial institutions pay for deposit insurance coverage and from earnings on premiums invested in U.S. Treasury securities.2 The FDIC insures more than $7 trillion of deposits in U.S. financial institutions.
The FDIC directly examines and supervises approximately 4,500 banks and savings banks for operational safety and soundness. To protect insured depositors, the FDIC responds immediately when a financial institution fails. Several options are available for resolving institution failures, but the one most frequently used is to sell deposits and loans of the failed institution to another institution. Customers of the failed institution automatically become customers of the assuming institution.
The FDIC is managed by a five-person Board of Directors, all of whom are appointed by the President and confirmed by the Senate, with no more than three being from the same political party.
3.2 Mission, Vision and Values
The FDIC is an independent agency created by the Congress to maintain stability and public confidence in the nation's financial system by:
- insuring deposits,
- examining and supervising financial institutions for safety and soundness and consumer protection, and
- managing receiverships.
The FDIC is a recognized leader in promoting sound public policies, addressing risks in the nation's financial system, and carrying out its insurance, supervisory, and consumer protection, and receivership management responsibilities.
The FDIC and its employees have a tradition of distinguished public service. Six core values guide us in accomplishing our mission:
- Integrity – We adhere to the highest ethical and
- Competence – We are a highly skilled, dedicated,
and diverse workforce empowered to achieve outstanding results.
- Teamwork – We communicate and collaborate
effectively with one another and with other regulatory agencies.
- Effectiveness – We respond quickly and
successfully to risks in insured depository institutions and the financial
- Accountability – We are accountable to each other
and to our stakeholders to operate in a financially responsible and
operationally effective manner.
- Fairness – We respect individual viewpoints and
treat one another and our stakeholders with impartiality, dignity, and
3.3 FDIC Division/Office Missions
The FDIC mission is supported by staff divided into primary business line and support divisions and offices created to address specific responsibilities and functions.
Business Line Divisions
Division of Risk Management Supervision
Division of Depositor and Consumer Protection
Oversees the FDIC's supervision program that promotes the safety and soundness of FDIC-supervised insured institutions.
Promotes stability and public confidence in the nation's financial system by examining and supervising insured financial institutions to ensure they comply with consumer protection laws and regulations; protecting consumers' rights; promoting financial literacy and economic inclusion; ensuring that FDIC-supervised institutions invest in their communities; and providing timely and accurate deposit insurance information to financial institutions and the public.
Division of Insurance and Research
Provides the public with a sound deposit insurance system by providing comprehensive statistical information on banking; identifying and analyzing emerging risks; conducting research that supports sound deposit insurance, banking policy, improved risk assessment, and consumer protection; and assessing the adequacy of the deposit insurance fund and implementing an effective and fair risk-based premium system.
Office of Complex Financial Institutions
Promotes confidence in the financial system by paying insured depositors quickly, effectively managing failed banks, and providing superior customer service.
Provides the FDIC with high quality, comprehensive, timely and cost-effective legal services.
Division of Finance
Provides the FDIC with accounting, financial, and employee services, dedicated to the highest level of quality, accuracy, timely delivery and reliability in all our products.
Division of Administration
Provides timely, high quality administrative services in a cost effective manner.
Division of Information Technology
Provides innovative, timely, reliable, and secure information technology services to FDIC. Provides business value through understanding, knowledge, communication, agility, and a strong customer focus. Enhances the FDIC role of protecting deposits and improving the safety and soundness in our nation's financial system.
Office of the Ombudsman
Acts as an effective, neutral, and confidential resource and liaison for the banking industry and the general public; facilitates the resolution of problems and complaints in a fair, impartial, and timely manner; provides prompt and meaningful feedback; and influences positive change at the FDIC.
Office of Communications
Provides accurate and timely information about the FDIC —its policies and programs—to the media, the public, the financial services industry and FDIC employees. OCOM regularly responds to the inquiries of reporters who cover the FDIC. OCOM also initiates outreach activities to inform the public about deposit insurance, consumer protection and financial literacy issues. Through press releases, press briefings, the FDIC’s Web site at FDIC.gov, Webcasts, the FDIC Consumer News and other avenues, OCOM maintains clear and effective communications and supports the FDIC’s mission to protect depositors, safely manage the deposit insurance fund and promote financial stability.
Office of Legislative Affairs
Serves as a liaison with the Congress of the United States and with state legislatures in a manner that enables the Corporation to meet its public goals and objectives. OLA advises senior Corporation officials on legislative matters and works with Congress to assist in the passage of legislation that will increase the Corporation's effectiveness and to avoid legislation that would disrupt its mission.
Office of International Affairs
Coordinates the FDIC's subject matter expertise to address global financial issues of importance to the deposit insurance system and the banking public and to provide the highest quality technical assistance, training and consulting services to foreign deposit insurers, bank supervisors and resolution authorities. The Office serves as a central point for all international related activities, including guidance for traveling internationally on behalf of the FDIC.
Office of Minority and Women Inclusion (OMWI)
Ensures fair and equitable treatment for all FDIC employees and applicants for employment pursuant to federal Equal Employment Opportunity laws and regulations; develops, coordinates, and monitors the Corporation's Affirmative Employment initiatives, diversity and inclusion; carries out outreach efforts to increase economic development opportunities for minority and women-owned businesses, law firms, and investors, to the maximum extent possible, in FDIC contracting, business, and investment activities; provides oversight of the Chairman's Diversity Advisory Councils (CDACs); and otherwise implements the requirements of section 342 of the Dodd-Frank Act.
Office of Corporate Risk Management
Responsible for developing a more integrated enterprise-wide approach to risk management and to build upon the strengths of the FDIC's existing practices, focusing on six thematic risk areas: Open Bank Risk, Closed Bank Risk, Economic and Financial Risk, Policy and Regulatory Risk, Reputational Risk, and Internal Structure and Process Risk.
Supports the Corporation's mission and business objectives through high-quality, cost effective, continuous learning, and development.
Office of the Inspector General
In accordance with the Inspector General Act of 1978, the OIG is a unique, independent and objective unit within the FDIC, headed by a Presidential Appointee. The OIG audits and evaluates matters related to FDIC programs and operations; investigates fraud and other criminal activity in or affecting FDIC-regulated financial institutions, closed institutions and receiverships, and other FDIC-regulated programs and operations; promotes economy, efficiency, effectiveness and integrity, and prevents fraud, waste and abuse in the FDIC's programs and operations; reviews existing and proposed legislation and regulations relating to the programs and operations of the Corporation; and keeps both the FDIC Chairman and the Congress informed about problems and deficiencies relating to FDIC programs and operations and the need for and progress of
The FDIC Office of Inspector General’s budget is funded through the Congressional appropriation process with the funds derived from the Deposit Insurance Fund.