Description of table L.111 - U.S.-Chartered Depository Institutions

U.S.-chartered depository institutions are financial intermediaries that raise funds through demand and time deposits as well as from other sources, such as federal funds purchases and security repurchase agreements, funds from parent companies, and borrowing from other lending institutions (for example, the Federal Home Loan Banks); they use the funds to make loans, primarily to businesses and individuals, and to invest in securities. U.S.-chartered depository institutions include national commercial banks chartered by the Controller of the Currency, state-chartered commercial banks (chartered by one of the 50 states or the District of Columbia), federal savings banks, state-chartered savings banks, cooperative banks, savings and loan associations, international banking facilities (IBFs) established by U.S.-chartered depository institutions (included in the sector since the establishment of IBFs in 1981:Q4), and assets and liabilities of failed banks in the process of liquidation held in Federal Deposit Insurance Corporation receivership. In recent years, this sector has undergone significant consolidation because of both the gradual removal of prohibitions on interstate banking arrangements and the growing similarity of the functions provided by different types of financial institutions. At the end of 2014, there were approximately 6,500 U.S.-chartered depository institutions insured by the FDIC, down from almost 14,000 twenty years prior. Foreign branches and foreign subsidiaries of U.S.-chartered depository institutions are excluded sectors; their assets and liabilities are included in the rest of the world sector. However, domestic nonbanking subsidiaries of U.S.-chartered depository institutions are consolidated with their parents. Holdings of debt securities (beginning 2012:Q1), corporate equities, and mutual fund shares are recorded at market value. A memo item on the table shows the total amount of checkable and time and savings deposits that are not insured by the Federal Deposit Insurance Corporation (FDIC). As of 2010:Q4, the standard FDIC insurance amount is $250,000 per depositor, per insured bank, for each account ownership category. Prior to 2006:Q1, the standard insurance amount was $100,000. Beginning 2006:Q1, the limit was raised to $250,000 for retirement accounts under the Federal Deposit Insurance Reform Act of 2005. In 2008:Q4, the standard insurance amount was temporarily increased to $250,000 under the Emergency Economic Stabilization Act of 2008. In 2010:Q4, it was made permanent under Dodd-Frank Act of 2010. Additionally, in 2008:Q4, the FDIC guaranteed in full, all non-interest-bearing transaction accounts (checkable deposits) under the Transaction Account Guarantee Program (TAGP) through 2010:Q4. The guarantee in full of all non-interest-bearing transaction accounts was extended through 2012:Q4 under the Dodd-Frank Act 2010. All deposits of IBFs are considered uninsured.Note: Because of accounting rule changes established by Statements of Financial Accounting Standards Nos. 166 and 167 in 2010:Q1, depository institutions consolidated back onto their balance sheets the assets and liabilities of certain special purpose vehicles that had previously been off balance sheet. This shift primarily increased loans on the asset side and corporate bonds and open market paper on the liability side.



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