The Federal Deposit Insurance Reform Act of 2005 (Title II, subtitle B of , with a companion statute, Federal Deposit Insurance Reform Conforming Amendments Act of 2005, ), was an act of the
United States Congress on
banking regulation
Bank regulation is a form of government regulation which subjects banks to certain requirements, restrictions and guidelines, designed to create market transparency between banking institutions and the individuals and corporations with whom t ...
. It contained a number of changes to the
Federal Deposit Insurance Corporation (FDIC).
* It raised the limit on
deposit insurance for retirement accounts from $100,000 to $250,000 and indexed the amount to
inflation.
* It merged the two deposit insurance funds that the FDIC had been administering separately since the
Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA). FIRREA abolished the former
Federal Savings and Loan Insurance Corporation (FSLIC) and created a new insurance fund, Savings Association Insurance Fund (SAIF), to be administered by the FDIC. The other, longer-standing fund administered by the FDIC was the Bank Insurance Fund (BIF). SAIF and BIF were combined into the Depositor Insurance Fund (DIF).
* It provided credits to banks that had paid into the deposit insurance funds in the early 1990s, in the aftermath of the
savings and loan crisis.
* It imposed a requirement that the FDIC issue rebates to the banking industry if the level of the deposit insurance fund rises above 1.5% of the total insured deposits.
{{Bank regulation in the United States
Deposit Insurance reform act
Federal Deposit Insurance Corporation
Acts of the 109th United States Congress