Federal Bank Regulatory Agencies of the United States
Federal Deposit Insurance Corporation
The Banking Act of 1933 established this agency. It directly supervises (enforces) and examines insured state-chartered banks which are not members of the Federal Reserve System.
Like the Federal Reserve, the FDIC is an independent federal agency. It has 5 directors, one of whom is the Comptroller of the Currency. Another is the director of the Office of Thrift Supervision. Three others are appointed by the President for a term of 6 years. One of the appointees is designated as Chairman of the FDIC for a 5-year term. While the headquarters are in Washington DC, there are 8 regional supervisory offices.
While the FDIC supervises a large number of banks, its main function is to insure the deposits at commercial banks and thrifts. Before a bank obtains deposit insurance, it applies to the FDIC to receive approval. FDIC insurance responsibilities extend to protecting insured depositors, acting as receiver for failed banks, and administering insurance funds. The fund is financed with assessments on insured banks.
The FDIC is authorized to make special examinations of any insured bank when necessary to determine the condition of the bank for insurance reasons. Since 1983, the FDIC has been involved in bank examinations of certain problem banks not directly under its supervision. To eliminate redundant examinations, the FDIC's current policy is to be involved in the examination supervised by other agencies. This is only when the examination represents a simultaneous effort or are confined to special occassions.
The FDIC has a variety of enforcement powers in its supervisory capacity. These include...
The FDIC can recommend or pursue enforcement actions against other insured institutions and may appoint itself as conservator or receiver to reduce insurance fund losses.
In 1989, the FDIC gained authority to insure thrifts through the Savings Association Insurance Fund. The FDIC may initiate examinations of insured thrifts for insurance purposes. The FDIC can prevent thrifts from pursuing activities that would pose a serious threat to the fund. Apart from these powers, the FDIC supervises state-chartered savings banks.
The Banking Act of 1933 established this agency. It directly supervises (enforces) and examines insured state-chartered banks which are not members of the Federal Reserve System.
Like the Federal Reserve, the FDIC is an independent federal agency. It has 5 directors, one of whom is the Comptroller of the Currency. Another is the director of the Office of Thrift Supervision. Three others are appointed by the President for a term of 6 years. One of the appointees is designated as Chairman of the FDIC for a 5-year term. While the headquarters are in Washington DC, there are 8 regional supervisory offices.
While the FDIC supervises a large number of banks, its main function is to insure the deposits at commercial banks and thrifts. Before a bank obtains deposit insurance, it applies to the FDIC to receive approval. FDIC insurance responsibilities extend to protecting insured depositors, acting as receiver for failed banks, and administering insurance funds. The fund is financed with assessments on insured banks.
The FDIC is authorized to make special examinations of any insured bank when necessary to determine the condition of the bank for insurance reasons. Since 1983, the FDIC has been involved in bank examinations of certain problem banks not directly under its supervision. To eliminate redundant examinations, the FDIC's current policy is to be involved in the examination supervised by other agencies. This is only when the examination represents a simultaneous effort or are confined to special occassions.
The FDIC has a variety of enforcement powers in its supervisory capacity. These include...
- terminating deposit insurance,
- issuing cease and desist orders,
- removing bank officials and other affiliated parties, and
- levying fines at state non-member banks.
The FDIC can recommend or pursue enforcement actions against other insured institutions and may appoint itself as conservator or receiver to reduce insurance fund losses.
In 1989, the FDIC gained authority to insure thrifts through the Savings Association Insurance Fund. The FDIC may initiate examinations of insured thrifts for insurance purposes. The FDIC can prevent thrifts from pursuing activities that would pose a serious threat to the fund. Apart from these powers, the FDIC supervises state-chartered savings banks.
posted by Don Marchand at 12:10 AM
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