Which regulator insures deposits and examines and supervises non-FRS member state-chartered banks?

• A. Federal Deposit Insurance Corporation (FDIC)
• B. Office of the Comptroller of the Currency (OCC)
• C. Federal Reserve System (Fed)
• D. National Credit Union Administration (NCUA)

Answer: (A)

Depositor protection and bank supervision are combined in the FDIC role. The Federal Deposit Insurance Corporation provides deposit insurance and, for most state-chartered banks that are not members of the Federal Reserve System, acts as their primary regulator, performing safety-and-soundness examinations and supervision. This means if a non-FRS state-chartered bank faces trouble, the FDIC is the main federal supervisor and also protects depositors up to insured limits.

Other regulators have different scopes: the OCC oversees nationally chartered banks and federal savings institutions; the Federal Reserve supervises member banks and many large financial institutions; the NCUA insures and supervises credit unions rather than banks.