Wednesday, September 11, 2013

Deposits in U.S. banks' foreign branches not insured: FDIC

09/11/13


The U.S. Federal Deposit Insurance Corp. (FDIC) on Tuesday approved a final rule stipulating that deposits in foreign branches of American banks are not covered by the FDIC.

The purpose of the rule is to ensure the U.S. will not become " a potential global deposit insurer", said FDIC in a statement.

Deposits in foreign branches of U.S. banks have doubled since 2001 and total approximately one trillion U.S. dollars now, according to U.S. official data.

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