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The Federal Deposit Insurance Corporation (FDIC) is a United States government corporation providing deposit insurance to depositors in American banks. The FDIC was created by the 1933 Banking Act after the Great Depression to restore trust in the American banking system; more than one-third of banks failed in the years before the FDIC's creation, and bank runs were common. The insurance limit was initially $2,500 per ownership category. Since the passage of the Dodd–Frank Wall Street Reform and Consumer Protection Act in 2011, the FDIC insures deposits in member banks up to $250,000 per ownership category.

The FDIC and its reserves are not funded by public funds; member banks' insurance dues are the FDIC's primary source of funding. The FDIC also has a $100 billion line of credit with the United States Department of the Treasury. Depositors in credit unions are insured by the National Credit Union Administration, which is also a government agency.

As of 27 November 2014, there were 6,638 FDIC-insured banks. The FDIC also examines and supervises certain financial institutions for safety and soundness, performs certain consumer-protection functions, and manages receiverships of failed banks.

Panics of 1893 and 1907 and the Great Depression: 1893-1933
During the Panics of 1893 and 1907, many banks filed bankruptcy due to bank runs caused by contagion. Both of the panics renewed discussion on deposit insurance. In 1893, William Jennings Bryan presented a bill to Congress proposing a national deposit insurance fund. No action was taken, as the legislature paid more attention to the agricultural depression at the time.

After 1907, eight states established deposit insurance funds. Due to the lax regulation of banks and the widespread inability of banks to branch; small, local unit banks—often with poor financial health—grew in numbers, especially in the western and southern states. In 1921, there were about 31,000 banks in the US. The Federal Reserve Act initially included a provision for nationwide deposit insurance, but it was removed from the bill by the House of Representatives. From 1893 to the FDIC's creation in 1933, 150 bills were submitted in Congress proposing deposit insurance.

The Great Depression devastated the American banking system. There was widespread panic over the American banking system; in the years before the FDIC's creation, more than one-third of all banks failed due to bank runs. Small banks in rural areas were especially affected. Reassurances and regulations by the government failed to assuage depositors' fears. Many depositors withdrew their assets in failed or nearly-insolvent banks.

Establishment of the FDIC: 1933
On 16 June 1933, Franklin D. Roosevelt signed the 1933 Banking Act into law, creating the FDIC. The initial plan set by Congress in 1934 was to insure deposits up to $2,500 ($ today) adopting of a more generous, long-term plan after six months. However, the latter plan was repealed by the 1935 Banking Act for an increase of the insurance limit to $5,000 ($ today). The FDIC received the authority to insure