Western Bank
Home | Tools | Locations/Hours | News/Events |Resource Room | Employment |Contact Us


Customer Service Announcments

July 29, 2011: American Bankers Associaton (ABA) ADVISORY
FDIC Remains Financially Strong in the Face of U.S. Debt Concerns

ABA ADVISORY
FDIC Remains Financially Strong in the Face of U.S. Debt Concerns
In the event any customers ask, ABA is advising bankers to assure them that the national debt ceiling is completely unrelated to FDIC insurance coverage. The association also is emphasizing that there is no need for any special outreach to customers on the issue.

The FDIC, an independent agency fully funded by banking industry premiums, is financially secure and has the resources it needs to protect customer deposits. Eighteen months ago banks paid to the FDIC three years of assessments -- totaling nearly $46 billion -- to assure the agency had the necessary funds to protect insured depositors. It has sufficient cash on hand today to meet its needs for the foreseeable future.

The banking industry remains committed to making sure the FDIC has the resources it needs to protect insured depositors, and this commitment is independent and unrelated to the how the debt ceiling discussions are ultimately resolved. The banking industry's capital -- $1.53 trillion -- stands behind the FDIC to assure it remains strong.

An FDIC spokesman today confirmed the agency's strong financial position. "The FDIC's Deposit Insurance Fund has more than adequate liquidity, currently more than $44 billion, to meet all of our deposit insurance responsibilities," he said. "The FDIC receives no federal tax dollars -- insured financial institutions fund the DIF."



Go back to Customer Service Announcements