2: Safety and Soundness
FDIC-supervised institutions are safe and sound. Other Information:
Program Description: As insurer, the FDIC is concerned with the safety and soundness of all insured institutions. However,
a distinction is made between the FDIC’s role as an insurer and its role as the primary federal supervisor for state non-member
banks.4 Nonetheless, it is important to note that the FDIC’s roles as an insurer and as a primary supervisor are complementary
and that many activities support both the insurance and supervision programs. In fulfilling its primary supervisory responsibilities,
the FDIC pursues two strategic goals: • FDIC-supervised institutions are safe and sound; and • Consumers’ rights are protected
and FDIC-supervised institutions invest in their communities. The FDIC promotes safe and sound financial institution practices
through examinations, regular communication with industry officials, and the review of applications submitted by FDIC-supervised
institutions to expand their activities or locations. When appropriate, the FDIC has a range of informal and formal enforcement
options available to resolve problems identified at an FDIC-insured institution. The FDIC also promotes institution compliance
with consumer protection and fair lending laws. The FDIC engages in a variety of activities related to consumer protection
and fair lending, including: 1) providing consumers with access to easily understood information about their rights and the
disclosures due them under consumer protection and fair lending laws; and 2) examining FDIC-supervised institutions to determine
their compliance with consumer protection and fair lending laws and evaluating their performance under the Community Reinvestment
Act of 1977 (CRA).
Objective(s):
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