Banking Practice Exam 2026 - Free Banking Practice Questions and Study Guide

The Federal Deposit Insurance Corporation (FDIC) serves as the receiver for failed depository institutions. This role is crucial in maintaining stability in the banking system. When a bank or savings institution fails, the FDIC steps in to manage the resolution process, which includes safeguarding depositor assets and facilitating the orderly liquidation of the institution's assets.

The FDIC's responsibilities as a receiver include identifying the bank's liabilities, assessing its assets, and ensuring that insured depositors are promptly paid their insured amounts. This process helps to mitigate the potential panic that could arise from a bank failure and reinforces public confidence in the banking system.

Other organizations mentioned have different roles; for instance, the Federal Reserve primarily focuses on monetary policy and serves as the central bank of the U.S., not directly involved in handling failed institutions. The Office of the Comptroller of the Currency (OCC) and the Office of Thrift Supervision (OTS) were involved in overseeing banks and thrifts during their operational stages but do not act as receivers in the event of a failure. The OTS has been absorbed into the OCC, and its role has been redefined. Thus, the FDIC is the appropriate and designated receiver for failed depository institutions, ensuring a structured approach to resolving