FDIC
BankingDefinition
Federal Deposit Insurance Corporation. Federal agency that insures bank deposits up to $250K per depositor per bank. Funded by bank assessments.
2008 limits raised from $100K to $250K (originally temporary, made permanent). 2023 SVB failure expanded de facto coverage to ALL deposits at the failing bank, raising moral hazard concerns. The FDIC Deposit Insurance Fund holds ~$130B vs. ~$10T of insured deposits.
2008 limits raised from $100K to $250K (originally temporary, made permanent). 2023 SVB failure expanded de facto coverage to ALL deposits at the failing bank, raising moral hazard concerns. The FDIC Deposit Insurance Fund holds ~$130B vs. ~$10T of insured deposits.