When an FDIC insured bank fails, the FDIC will generally be appointed as the receiver. Generally, the FDIC will immediately solicit bids from other institutions interested in acquiring the bank. An acquisition can usually be arranged so that the failed bank will reopen as a branch of the acquiring bank before most customers realize what happened.
The number of bank failures increased dramatically between 2008 and 2010 but has been declining for the past five years. During 2014 a total of 18 banks failed with total assets of $3.1 billion resulting in losses to the FDIC Deposit Insurance Fund of $398.8 million. A total of 24 banks with $6.1 billion in assets failed during 2013 resulting in losses to the FDIC Deposit Insurance Fund of $1.17 billion. During 2012, a total of 51 banks with $12.0 billion in assets failed, resulting in losses to the FDIC of $2.5 billion. A total of 92 banks failed during 2011 resulting in losses to the FDIC Deposit Insurance Fund of $7.22 billion. During 2010, a total of 157 banks failed, the most since 1992 when 181 were closed. Banking failures during 2010 cost the FDIC Deposit Insurance Fund $26 billion, bringing the fund balance to below zero. A total of 140 institutions failed during 2009 compared to only 25 during 2008. There were only 3 bank failures during all of 2007. No banks failed during 2005 and 2006.
The number of failed institutions for 2016 totals one bank as of March 11, 2016. The cost to the FDIC Deposit Insurance Fund (DIF) for the one banking failure totals $9.6 million. Total assets of the failed bank amounted to $67.1 million.
Banking Failures Since 2008
Year Number of Bank Failures
Ultimately, depositors are insured by the FDIC. The old standard coverage limit of $100,000 per depositor has been increased to $250,000 due to turmoil in the financial markets. The increased FDIC insurance limit was set to expire on December 31, 2013 but Lawmakers recently agreed to make the temporary increase in FDIC deposit insurance permanent (see FDIC Insurance Limits To Permanently Increase). The old limit of $100,000 deposit insurance had not been increased since 1980. Below you will find a list of failed banks from 2007 to present.