FDIC: Bank Failures in Brief (2024)

FAQs

What is the FDIC failed bank list? ›

FDIC Problem Bank List is a confidential list, published by the Federal Deposit Insurance Corporation (FDIC) every quarter, of U.S. banks and thrifts that are on the brink of financial insolvency. Only institutions that are insured by the FDIC through the Deposit Insurance Fund are on the FDIC Problem Bank List.

Historically, the FDIC pays insurance within a few days after a bank closing, usually the next business day, by either (1) providing each depositor with a new account at another insured bank in an amount equal to the insured balance of their account at the failed bank, or (2) by issuing a payment to each depositor for ...

Republic First Bank's demise on April 26 was the first failure of 2024. Its collapse renewed fears that last year's financial instability is still lingering. Republic First Bank was shuttered last week by its state regulator and taken over by the Federal Deposit Insurance Corp.

The most common cause of bank failure is when the value of the bank's assets falls below the market value of the bank's liabilities, which are the bank's obligations to creditors and depositors. This might happen because the bank loses too much on its investments.

JPMorgan Chase, the financial institution that owns Chase Bank, topped our experts' list because it's designated as the world's most systemically important bank on the 2023 G-SIB list. This designation means it has the highest loss absorbency requirements of any bank, providing more protection against financial crisis.

Consulting firm Klaros Group analyzed about 4,000 U.S. banks and found 282 banks face the dual threat of commercial real estate loans and potential losses tied to higher interest rates. The majority of those banks are smaller lenders with less than $10 billion in assets.

It indicates an expandable section or menu, or sometimes previous / next navigation options. Your money is safe in a bank, even during an economic decline like a recession. Up to $250,000 per depositor, per account ownership category, is protected by the FDIC or NCUA at a federally insured financial institution.

If your bank fails, up to $250,000 of deposited money (per person, per account ownership type) is protected by the FDIC. When banks fail, the most common outcome is that another bank takes over the assets and your accounts are simply transferred over.

Priority of Payments and Timing

By law, after insured depositors are paid, uninsured depositors are paid next, followed by general creditors and then stockholders. In most cases, general creditors and stockholders realize little or no recovery.

Read the CFPB's order. Read the CFPB's 2022 action against U.S. Bank. In its previous action against the bank, the CFPB fined U.S. Bank $37.5 million for illegally accessing its customers' credit reports and opening checking and savings accounts, credit cards, and lines of credit without customers' permission.

How many US banks failed in 2024? ›

2024 in Brief

There is 1 bank failure in 2024. See detailed descriptions below. For more bank failure information on a specific year, select a date from the drop down menu to the right or select a month within the graph.

Most US banks were similarly exposed to customer withdrawals and underwater bond portfolios, while the Credit Suisse collapse demonstrated the potential for contagion. The Fed's BTFP stopped the panic by allowing US banks to borrow from the central bank using their bonds as collateral.

Historically, small banks are more likely to fail than large banks because they concentrate on regional lending, have fewer revenue streams to diversify risk and possess less capital to absorb losses. However, robust regulatory oversight and FDIC insurance help mitigate the risk to depositors.

Deposit insurance coverage was initially set at $2,500 in 1933. Today, the FDIC provides $250,000 in coverage per depositor, per account. The FDIC first paid claims to depositors of failed banks in the mid-1980s.

Bank of North Dakota, for example, is not FDIC-insured. Instead, it is backed by the full faith and credit of the State of North Dakota. Credit unions are regulated differently from banks and have their own federal deposit insurance through the National Credit Union Share Insurance Fund (NCUSIF).

No, the FDIC doesn't insure regular shares and share draft accounts held at credit unions. Instead, the National Credit Union Share Insurance Fund, run by the National Credit Union Administration (NCUA), insures credit union accounts.

FDIC insurance covers deposits in all types of accounts at FDIC-insured banks, but it does not cover non-deposit investment products, even those offered by FDIC-insured banks. Additionally, FDIC deposit insurance doesn't cover default or bankruptcy of any non-FDIC-insured institution.