FDIC Meaning and
Definition
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The FDIC, also known as the Federal Deposit Insurance Corporation, is an independent federal agency in the United States that provides deposit insurance to depositors in commercial banks and savings institutions. It was established in 1933 as a response to the numerous bank failures that occurred during the Great Depression.
The primary purpose of the FDIC is to maintain public confidence in the banking system by insuring deposits and promoting stability in the financial industry. It achieves this by providing insurance coverage for deposits up to a certain amount per depositor, per insured bank. This insurance protects depositors in case of bank failures, providing them with assurance that their funds are safe and secure.
In addition to providing deposit insurance, the FDIC also plays a crucial role in monitoring and supervising financial institutions to ensure their safety and soundness. It examines banks regularly, assessing their financial condition and risk management practices. The FDIC also has the authority to take necessary actions, such as closing or merging troubled banks, in order to protect depositors and maintain stability in the banking system.
Overall, the FDIC serves as a vital safeguard for depositors in the United States, providing them with confidence that their hard-earned money is protected even in the event of a bank failure.
Top Common Misspellings for FDIC *
* The statistics data for these misspellings percentages are collected from over 15,411,110 spell check sessions on www.spellchecker.net from Jan 2010 - Jun 2012.
Other Common Misspellings for FDIC
Etymology of FDIC
"FDIC" stands for the Federal Deposit Insurance Corporation. The etymology of the word can be broken down as follows:
1. Federal: The term "federal" comes from Latin "foedus" meaning "league" or "treaty". It refers to a government or system that operates at the national or central level in a federal system. In the case of the FDIC, it signifies that it is an agency of the United States federal government.
2. Deposit: The word "deposit" originates from the Latin word "depositum", which means "a thing deposited". It refers to the act of placing money or valuable items into an account or a safe place for safekeeping or future use.
3. Insurance: The term "insurance" comes from the Latin word "assurare" meaning "to make sure, secure, or safe".
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