Federal Deposit Insurance Corporation

Definition

The FDIC is a U.S. government agency created in 1933 to protect bank depositors by insuring deposits at banks and thrift institutions. It also works to maintain stability and public confidence in the nation's financial system.

Related terms

Bank Run: A scenario where many depositors withdraw their money from a bank simultaneously over concerns about the bank's solvency.

Financial Stability: The condition where the financial system is able to withstand shocks and the unraveling of financial imbalances while still facilitating economic processes.

Deposit Insurance: A guarantee by an institution like the FDIC that deposits in member banks are protected up to a specified amount if the bank fails