Failing Bank Resolutions
The FDIC's primary objective is to maintain stability and public confidence in the nation’s financial system. The FDIC encourages troubled insured depository institutions to resolve problems that may lead to failure on their own by seeking a merger partner or additional capital. If the institution is unable to do so, the FDIC will implement its resolution process by attempting to sell the failing institution to qualified bidders (healthy insured depository institutions). The FDIC is required by law to resolve failed institutions using the least costly option to minimize losses to the Deposit Insurance Fund. Additionally, the FDIC looks to return assets to the private sector in an orderly and efficient manner, while minimizing the impact on communities affected by bank failures. The FDIC resolution planning efforts help to ensure that the resolution process is generally seamless for bank customers.