What is the role of the FDIC in bank examinations?

The role of the FDIC in bank examinations primarily revolves around conducting regular examinations for safety and compliance. This function is crucial to ensuring that financial institutions operate safely and soundly, thereby protecting the depositors and the overall stability of the financial system. During these examinations, the FDIC evaluates a bank's adherence to banking laws and regulations, verifies the soundness of its operational practices, and assesses risk management processes.

By focusing on safety and compliance, the FDIC ensures that banks maintain sufficient capital reserves, operate within legal constraints, and manage risks effectively, which together enhance depositor confidence and minimize the likelihood of bank failures. This proactive oversight is integral to the FDIC's mission of promoting public confidence in the U.S. financial system.