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
The United States Congress is the legislature of the federal government of the United States. It is Bicameralism, bicameral, composed of a lower body, the United States House of Representatives, House of Representatives, and an upper body, ...
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
The Federal Deposit Insurance Corporation (FDIC) is one of two agencies that supply deposit insurance to depositors in American depository institutions, the other being the National Credit Union Administration, which regulates and insures cr ...
(FDIC).
* It raised the limit on
deposit insurance
Deposit insurance or deposit protection is a measure implemented in many countries to protect bank depositors, in full or in part, from losses caused by a bank's inability to pay its debts when due. Deposit insurance systems are one component of ...
for retirement accounts from $100,000 to $250,000 and indexed the amount to
inflation
In economics, inflation is an increase in the general price level of goods and services in an economy. When the general price level rises, each unit of currency buys fewer goods and services; consequently, inflation corresponds to a reduct ...
.
* It merged the two deposit insurance funds that the FDIC had been administering separately since the
(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