Economic Research and Data

Economic Trends

Filling you in on the current state of the economy


Banking and Financial Institutions

FDIC Funds

FDIC-insured deposits grew 6.7 percent in 2006. The fund’s reserve-to-deposit ratio fell to 1.21 percent, partly because insured deposits increased after the retirement account ceiling was raised from $100,000 to $250,000 in April. The reserve-to-deposit ratio remained in the target range, which changed to 1.15 percent–1.5 percent that month.

Bank failures since 1995 have been miniscule in terms of both the number of institutions and their total assets. No FDIC-insured institution failed in 2006; in fact, the fourth quarter of 2006 was the tenth consecutive quarter without any failures, the longest such period in the history of federal deposit insurance.

By the end of 2006, the number of problem institutions (those with substandard examination ratings) had dropped to 50, the lowest in the 36 years for which data are available. However, their total assets increased from $7 billion to $8.3 billion over the same period. Still, the low number of problem institutions and the low value of their assets suggest that the FDIC’s losses will remain low in the near future.

Economic Trends is published by the Research Department of the Federal Reserve Bank of Cleveland.

Views stated in Economic Trends are those of individuals in the Research Department and not necessarily those of the Federal Reserve Bank of Cleveland or of the Board of Governors of the Federal Reserve System. Materials may be reprinted provided that the source is credited.

If you'd like to subscribe to a free e-mail service that tells you when Trends is updated, please send an empty email message to No commands in either the subject header or message body are required.

ISSN 0748-2922