BANKING AFFAIRS

Detailed explanation-1: -The FDIC Improvement Act was passed in 1991 to strengthen the FDIC’s role in overseeing banks and protecting consumers. Financial institutions that fail to comply with FDICIA requirements could face civil penalties and additional administrative actions.

Detailed explanation-2: -The FDIC receives no Congressional appropriations-it is funded by premiums that banks and savings associations pay for deposit insurance coverage. The FDIC insures trillions of dollars of deposits in U.S. banks and thrifts-deposits in virtually every bank and savings association in the country.

Detailed explanation-3: -The Federal Deposit Insurance Corporation (FDIC) is an independent agency created by Congress to maintain stability and public confidence in the nation’s financial system.

Detailed explanation-4: -The Federal Deposit Insurance Corporation Improvement Act of 1991 (FDICIA, Pub. L. 102–242), passed during the savings and loan crisis in the United States, strengthened the power of the Federal Deposit Insurance Corporation.