An established depository institution refers to a bank or savings association that has been federally insured for a minimum of five years by the Federal Deposit Insurance Corporation (FDIC). This status is important for institutions seeking to demonstrate stability and reliability in the banking sector.
The term "established depository institution" is primarily used in banking and financial regulations. It is relevant in contexts such as:
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Here are a couple of examples of abatement:
Example 1: A community bank that has been in operation and federally insured for six years qualifies as an established depository institution. This allows it to participate in various federal programs.
Example 2: A savings association that recently received FDIC insurance but has only been operating for three years does not meet the criteria to be considered established (hypothetical example).
The definition and criteria for established depository institutions are outlined in Title 12 of the Code of Federal Regulations, specifically 12 CFR 327.8. This regulation governs the assessments and operational standards for federally insured institutions.
| Term | Definition | Key Differences |
|---|---|---|
| Depository Institution | A financial institution that accepts deposits from the public. | Does not require a minimum insurance period. |
| Federal Savings Bank | A specific type of savings institution chartered by the federal government. | May not have the same insurance duration requirement as established depository institutions. |
If you are considering working with an established depository institution, ensure that the institution meets the five-year insurance requirement. You can explore US Legal Forms for templates related to banking agreements and compliance documents. If your situation is complex, seeking advice from a legal professional is recommended.
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It is a bank or savings association that has been federally insured for at least five years.