The recent failures of IndyMac Bank, a federal savings bank headquartered in California, and other federally-chartered banks have many depositors around the country and in Arizona asking questions about the soundness of their bank and whether their deposits are safe.
Customers of Arizona state-chartered banks have little to worry about as these banks overall remain well-capitalized and well-managed. All Arizona banks, whether chartered by Arizona or a federal regulator, are insured by the Federal Deposit Insurance Corporation (FDIC).
"Arizona state-chartered banks are closely monitored and all aspects of the banks’ business are subject to examination and scrutiny by teams of examiners from our Department and the FDIC," said Felecia Rotellini, Superintendent, Arizona Department of Financial Institutions. The Department charters and regulates 34 banks in Arizona.
Many of the credit problems that led to IndyMac’s demise can be attributed to its specialized subprime lending practices. Arizona state-chartered banks have generally not offered nor originated these subprime products and, therefore, have steered clear of the problems affecting some financial institutions.
The FDIC – the chief insurer of bank deposits – is an independent agency of the United States government. The FDIC protects against the loss of your deposits if an FDIC-insured bank fails. The basic insurance amount is $100,000 per depositor per insured institution. Certain retirement accounts, such as Individual Retirement Accounts (IRAs), are insured up to $250,000 per depositor per insured bank. This means if you have deposited funds with a bank, up to $100,000 of your deposit and $250,000 of certain retirement accounts are insured against loss.
The FDIC insures deposits at the nation’s nearly 8,500 banks and savings associations. Along with the Arizona Department of Financial Institutions, the FDIC examines state-chartered banks on a regular basis. These examinations insure that the banks are operated in a safe and sound manner by identifying, monitoring and addressing risks to the banks.
The Arizona Department of Financial Institutions is responsible for the supervision and regulation of state-chartered banks and credit unions, trust companies and licensed non-depository financial entities operating in this state.
Be sure to obtain the facts before making any changes in your accounts or banking relationships.
"Frequently Asked Questions" on banking are available on the Department’s website and the Governor’s website.
For additional information regarding FDIC insurance, please see the FDIC’s website at fdic.gov. This website has a feature that enables you to calculate insurance coverage (EDIE – Electronic Deposit Insurance Estimator). In addition, the FDIC has a toll-free number (877-275-3342) operated from 8 am to 8 pm (EST) where a customer service representative can discuss deposit insurance coverage with you.