Each depositor insured to at least $250,000 per insured bank

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Important Update: Changes in FDIC Deposit Insurance Coverage

The FDIC deposit insurance rules have undergone a series of changes starting in the fall of 2008. As a result, certain previously published information related to FDIC insurance coverage may not reflect the current rules. For details about the changes, visit Changes in FDIC Deposit Insurance Coverage. For more information about FDIC insurance, go to www.fdic.gov/deposit/deposits/index.html or call toll-free 1-877-ASK-FDIC (1-877-275-3342). For the hearing-impaired, the number is 1-800-925-4618.

Winter 2005/2006

Banks Are Required to Prepare for Disasters

Federal and state banking regulators require financial institutions to develop and test "disaster recovery" and "business continuity plans." Each plan must spell out how the bank will recover data, ensure the availability of cash, continue customer service, and otherwise function efficiently after a wide-ranging disaster — one in which personnel are unavailable, key facilities are closed, and power and phones are out for an extended period.

According to Michael Jackson, an Associate Director of the FDIC's Division of Supervision and Consumer Protection, the terrorist attacks on September 11, 2001, and the recent devastation from Hurricanes Katrina and Rita reminded the financial industry and its regulators "that you must be ready for a disaster of any magnitude or duration — you cannot plan for something small or brief."

"Banking institutions play a vital role in supporting the economy, businesses and individual families after a disaster," added Kathryn Weatherby, an Examination Specialist for the FDIC. "It's in everyone's best interest that banks bounce back quickly and that disruptions are minimized."

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Last Updated 02/02/2006 communications@fdic.gov