The offers that appear on this site are from companies that compensate us. This compensation may impact how and where products appear on this site, including, for example, the order in which they may appear within the listing categories. But this compensation does not influence the information we publish, or the reviews that you see on this site. We do not include the universe of companies or financial offers that may be available to you. Show SHARE:
On This Page
On This Page Jump to Menu List On This Page
Prev Next  Jer123/Shutterstock 4 min read Published July 12, 2022 CheckmarkExpert verified Bankrate logoHow is this page expert verified? At Bankrate, we take the accuracy of our content seriously. “Expert verified” means that our Financial Review Board thoroughly evaluated the article for accuracy and clarity. The Review Board comprises a panel of financial experts whose objective is to ensure that our content is always objective and balanced. Their reviews hold us accountable for publishing high-quality and trustworthy content. About our Review BoardWritten by Matthew Goldberg Written by Matthew GoldbergArrow RightConsumer banking reporter Matthew Goldberg is a consumer banking reporter at Bankrate. Matthew has been in financial services for more than a decade, in banking and insurance. Matthew Goldberg Edited by Karen Bennett Edited by Karen BennettArrow RightConsumer banking reporter Karen Bennett is a consumer banking reporter at Bankrate. She uses her finance writing background to help readers learn more about savings and checking accounts, CDs, and other financial matters. Karen Bennett Reviewed by Robert R. Johnson Reviewed by Robert R. JohnsonArrow RightProfessor of finance, Creighton University Robert R. Johnson, Ph.D., CFA, CAIA, is a professor of finance at Creighton University and chairman and CEO of Economic Index Associates, LLC. A company that controls one or more U.S. banks. A bank holding company may also own another bank holding company, which in turn controls a bank. The company at the top of the ownership chain is called the top holder. The Board of Governors is responsible for regulating and supervising bank holding companies, even if the bank controlled by the holding company is under the primary supervision of a different federal agency (OCC or FDIC). A financial institution that engages in various financial services, such as accepting deposits and making loans. Includes the following Institution Types: A state savings association that is organized and operates according to the laws of the state in which it is chartered or organized. A federal savings association that makes a HOLA 5A election to operate as a covered savings association. Covered savings associations have the same rights and privileges as national banks and are treated like national banks, except for enumerated purposes. Covered savings associations retain federal savings association charters. A financial cooperative association organized for the purpose of promoting thrift among its members and creating a source of credit for provident or productive purposes. Credit unions can have federal, state, or corporate affiliations. Includes the following Institution Types: An Edge corporation is chartered by the Federal Reserve Board to engage in international banking and financial operations and can be broken into domestic branches, banking institutions, or investment institutions. Likewise,an Agreement corporation is chartered by a state to engage in international banking; so named because the corporation enters into an agreement with the Federal Reserve Board that will limit its activities to those permitted. Includes the following Institution Types: Any Federally chartered financial institution that is supervised, examined, and regulated by the Farm Credit Administration and operates in accordance with the Farm Credit Act of 1971, as amended (12 U.S.C. 2001 et seq). All Farm Credit System institutions are federally-chartered instrumentalities of the United States. Includes the following Institution Type: A financial entity engaged in a broad range of financial-related activities, created by the Gramm-Leach-Bliley Act of 2000. These activities include: insurance underwriting, securities dealing and underwriting, financial and investment advisory services, merchant banking, issuing or selling securitized interests in bank-eligible assets, and generally engaging in any non-banking activity authorized by the Bank Holding Company Act. The Federal Reserve Board is responsible for supervising the financial condition and activities of financial holding companies. Similarly, any non-bank commercial company that is predominantly engaged in financial activities, earning 85% or more of its gross revenues from financial services, may choose to become a financial holding company. These companies are required to sell any non-financial (commercial) businesses within ten years. Includes the following Institution Types: A limited service financial institution that raises funds by selling certificates, called "investment shares," and by accepting deposits. Often called Morris Plan banks or industrial loan companies. Industrial banks are distinguished from commercial loan companies because industrial banks accept deposits in addition to making consumer and commercial loans. Industrial banks differ from commercial banks because some do not offer demand deposit (checking) accounts. Industrial banks are FDIC-supervised financial institutions and are currently chartered in seven states (California, Colorado, Hawaii, Indiana, Minnesota, Nevada and Utah). This group includes the following Institution Type: A company licensed to sell insurance products or to underwrite or reinsure insurance products either for coverage of third parties or for the self-insurance programs of a bank holding company, savings and loan holding company, and their affiliates. This group includes the following Institution Types: A company established or designated by a foreign banking organization as its U.S. intermediate holding company under subpart O of the Federal Reserve Board’s Regulation YY (12 CFR part 252). Accepts and executes trusts, but does not issue currency. Can either be Federal Reserve members or Non-Members. This group includes the following Institution Types: Companies not specifically listed, but in which there is regulatory interest, that are not authorized to accept deposits. This group includes the following Institution Types: A financial institution that accepts deposits primarily from individuals, and channels its funds primarily into residential mortgage loans. A company that directly or indirectly controls a savings association or that controls another savings and loan holding company. This excludes any company that is also a bank holding company. Savings BanksA financial institution organized to accept savings deposits and pay interest on those savings deposits. Savings banks can have state or federal affiliations (for example, state savings banks and federal savings banks). Includes the following Institution Types:
Securities Brokers/Dealers/UnderwritersEntities primarily engaged in acting as agents (i.e., brokers/dealers) between buyers and sellers in buying or selling securities on a commission or transaction fee basis. Includes the following Institution Type: U.S. Branches and Agencies of Foreign Banking OrganizationsEntities contained within and controlled by a foreign banking organization. Includes the following Institution Types: Other Institution Type DefinitionsDomestic Branch of a Domestic BankA branch office of a commercial bank, both of which are physically located in the United States. Domestic Entity OtherInstitutions that are physically located in the United States, which engage in banking activities, usually in connection with the business of banking in the United States. Data Processing ServicerEntities primarily engaged in providing infrastructure for hosting or data processing services. These establishments may provide specialized hosting activities, such as web hosting, streaming services or application hosting, provide application service provisioning, or may provide general time-share mainframe facilities to clients. Data processing establishments provide complete processing and specialized reports from data supplied by clients or provide automated data processing and data entry services. Finance CompanyA financial intermediary that makes loans to individuals or businesses. Foreign BankAn organization that is organized under the laws of a foreign country and that engages directly in the business of banking outside the United States. Foreign Banking Organization (FBO)A foreign bank that operates a branch, agency or commercial lending company subsidiary in the United States, controls a bank organized under U.S. law, or controls an Edge or agreement corporation, and any company of which a foreign bank is a subsidiary. Foreign Banking Organization as a BHCA foreign banking organization that also acts as a bank holding company and is thus supervised by the Board of Governors of the Federal Reserve. Foreign Branch of a U.S. BankA branch that resides outside of the United States, but has a parent that is located in the United States. Foreign Entity OtherInstitutions that engage in banking activities, usually in connection with the business of banking, in foreign countries where such institutions are organized or operating. Insured Branch of an FBO (Federal and State)A branch that accepts retail deposits which are insured by the Federal Deposit Insurance Corporation. Investment Bank/CompanyActs as an underwriter or agent that serves as intermediary between the issuer of securities and the investing public. National BankA commercial bank whose charter is approved by the Office of the Comptroller of the Currency (OCC) rather than by a state banking agency. National banks are required to be members of the Federal Reserve System and belong to the Federal Deposit Insurance Corporation. Non-Member BanksCommercial banks that are state-chartered and NOT members of the Federal Reserve System. Include all insured commercial banks and industrial banks. State Member BanksInclude all commercial banks that are state-chartered and members of the Federal Reserve System. ThriftsAn organization that primarily accepts savings account deposits and invests most of the proceeds in mortgages. Savings banks, savings and loan associations, and credit unions are examples of thrift institutions. Uninsured Agency of a FBO (Federal and State)An uninsured agency does not accept retail deposits and needs not apply for federal deposit insurance. What is a federal agency that insures deposits at banks?The Federal Deposit Insurance Corporation (FDIC) is an independent agency created by the Congress to maintain stability and public confidence in the nation's financial system.
Is FDIC a bank?A: The FDIC (Federal Deposit Insurance Corporation) is an independent agency of the United States government that protects bank depositors against the loss of their insured deposits in the event that an FDIC-insured bank or savings association fails.
What government agency was formed to insure the bank deposits for the customers?The Federal Deposit Insurance Corporation (FDIC) is an independent agency that provides deposit insurance for bank accounts and other assets in the United States if financial institutions fail. The FDIC was created to help boost confidence in consumers about the health and well-being of the nation's financial system.
What is the function of the FDIC?To accomplish this mission, the FDIC insures deposits; examines and supervises financial institutions for safety, soundness, and consumer protection; makes large and complex financial institutions resolvable; and manages receiverships.
|
