FDIC

FDIC stands for the Federal Deposit Insurance Corporation, an independent U.S. agency that protects depositors by insuring deposits in banks and savings institutions.

Established in 1933 in response to widespread bank failures, the FDIC helps maintain stability and public confidence in the financial system. As of today, it insures deposits up to $250,000 per depositor, per insured bank, for each account ownership category.

History & Authority of the FDIC

The FDIC was created in 1933 through the Banking Act, in direct response to the banking crises of the Great Depression. Congress granted it authority to regulate, examine, and supervise financial institutions for soundness and compliance. Its independence means it is not funded by taxpayer dollars, but through insurance premiums paid by member banks.

Why It Matters for Intranets

Banks insured by the FDIC must follow strict operational and compliance guidelines. A secure intranet helps banks stay aligned with these requirements - particularly when it comes to policy distribution, version tracking, and documentation of operational controls.

What FDIC Insurance Covers

  • Checking accounts, savings accounts, and money market deposit accounts
  • Certificates of Deposit (CDs)
  • Cashier's checks and money orders issued by insured banks

It does not cover investments such as stocks, bonds, mutual funds, annuities, or crypto assets, even if purchased at an FDIC-insured bank.

Common Intranet Use Cases Related to FDIC Compliance

  • Publishing and tracking internal procedures
  • Automating compliance reviews
  • Providing documentation for audits
  • Training staff on FDIC-insured best practices

What Examiners Expect

During FDIC examinations, institutions must demonstrate more than simple policy libraries. Examiners look for:

  • Evidence of version control
  • Staff acknowledgment of critical policies
  • Clear workflows for updates and approvals

How SimplifyIT Supports FDIC Compliance

Our intranet platform supports FDIC-regulated institutions by streamlining documentation workflows, enforcing version control, and creating audit-ready trails of employee acknowledgment and access.

Common Questions

How is the FDIC funded?
The FDIC is funded by insurance premiums paid by member banks and investment earnings, not taxpayer dollars.
What is the current FDIC insurance limit?
As of today, the FDIC insures deposits up to $250,000 per depositor, per insured bank, per ownership category.
Do credit unions fall under the FDIC?
No. Credit unions are insured by the National Credit Union Administration (NCUA), which provides similar protections for members.
How can intranets help with FDIC compliance?
Intranets help institutions maintain examiner-ready documentation, manage version control, automate approvals, and track employee acknowledgments.

Related Definitions & Bank Intranet Features

Learn how SimplifyIT supports banks with FDIC compliance needs

 
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