Federal Deposit Insurance Corporation Improvement Act Of 1991
What Does Federal Deposit Insurance Corporation Improvement Act Of 1991 Mean?
The Federal Deposit Insurance Corporation Improvement Act (FDICIA), enacted on December 19, 1991, was designed to expand the powers of the Federal Deposit Insurance Corporation (FDIC). Its primary objectives are to mandate the least costly resolution of insured depository institutions, enhance the supervision and examination of insurance businesses, and provide additional resources to the Bank Insurance Fund.
Insuranceopedia Explains Federal Deposit Insurance Corporation Improvement Act Of 1991
The FDICIA strengthened the FDIC’s authority by allowing it to borrow directly from the Treasury Department and resolve banking issues using the most cost-effective methods. This legislation also empowered the FDIC to enhance oversight of insurance companies through improved supervision, examination, and premium assessment, as well as by establishing new capital requirements for insurance companies.
