A Regulatory Agency That Makes Sure Banks Follow Federal Laws is?
The Federal Deposit Insurance Corporation (FDIC) is the regulatory agency that ensures banks follow federal laws, guaranteeing customer deposits and maintaining stability in the banking system.
by Sai V
Updated Oct 27, 2023
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A Regulatory Agency That Makes Sure Banks Follow Federal Laws is?
The regulatory agency ensuring banks comply with federal laws is the Federal Deposit Insurance Corporation (FDIC).
The FDIC, established post-Great Depression, oversees commercial banks in the U.S. Its key role is to guarantee customer deposits, assuring that even if a bank fails, depositors won't lose their money. By rigorously regulating bank activities and enforcing federal policies, the FDIC maintains the stability and trustworthiness of the banking system. This assurance boosts public confidence, ensuring a secure environment for financial transactions and preserving the integrity of the nation's banking institutions.
What is FDIC?
The FDIC, or Federal Deposit Insurance Corp., is a U.S. federal agency insuring deposits in banks and thrifts up to $250,000 per depositor. Established in 1933, it prevents bank runs and maintains public confidence in the financial system. While covering various account types, it does not insure products like stocks, bonds, or mutual funds, ensuring the safety of traditional banking deposits.
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