Bangladesh Business Du

Discuss about the deposit insurance of USA and compare it with Bangladesh:

Deposit insurance system is an institutional initiative to protect depositors against the loss of their deposits in the event that a scheduled bank goes into liquidation.

Deposit insurance of USA:

Deposit insurance has been an important part of the US system since the Federal Deposit Insurance Corporation (FDIC) was set up after the 1933 US Banking Act.

FDIC provides deposit insurance, which guarantees the safety of deposits in member banks, up to $250,000 per depositor per bank.

FDIC also examines and supervises certain financial institutions for safety and soundness, performs certain consumer-protection functions, and manages banks in receiverships (Failed banks)

Since the start of FDIC insurance on January 1, 1934, no depositor has lost any insured funds as a result of bank failure.

Comparison of Deposit insurance of USA and BD

Elements | USA | BD |

Establishment | In USA deposit insurance was introduced in 1933 | In Bangladesh deposit insurance was introduced in 1984 |

Act | It is operated by Glass-Steagall Act of 1933 | It is operated by Bank Amanat Bima Ain 2000. |

Coverage | The standard insurance amount is $250,000 per depositor, per insured bank, for each account ownership category. | Bangladesh bank covers up to TK 100000. |

Premium Rate | * Well capitalized: 10% or higher * Adequately capitalized: 8% or higher * Undercapitalized: less than 8% * Significantly undercapitalized: less than 6% * Critically undercapitalized: less than 2% | Private Commercial Banks: * Under Problem bank category: 10% * Under Early warning bank category: 9% * Outside the problem& early warning bank category: 8%State owned commercial bank: 8% |

Items not insured | FDIC insurance does not cover other financial products and services that banks may offer, such as stocks, bonds, mutual funds, life insurance policies, annuities or securities. | DISB does not cover deposits of foreign...