What is the primary purpose of "bank resolution" strategies employed by the FDIC?

The primary purpose of "bank resolution" strategies employed by the FDIC is to deal with failing banks and protect depositors. When a bank is on the verge of failure, the FDIC steps in to manage the resolution process, which may involve selling the bank, merging it with a healthier institution, or liquidating its assets. These strategies are crucial for maintaining public confidence in the banking system and ensuring that depositors do not lose their insured deposits. By effectively addressing the issues of failing banks, the FDIC aims to stabilize the financial system and minimize the broader impact on the economy. This function is essential to uphold consumer trust in the banking system and to ensure that financial institutions operate smoothly, thereby protecting the interests of depositors and the overall integrity of the banking industry.