Which U.S. agency began insuring bank deposits after the Banking Act of 1933?

The Federal Deposit Insurance Corporation began insuring U.S. bank deposits after the Banking Act of 1933.

Congress created the FDIC in response to the banking crises of the early Great Depression, when thousands of banks failed and depositors lost their savings. The agency began temporary deposit-insurance operations on 1 January 1934. Its purpose was to protect eligible depositors and strengthen confidence in the banking system.

Deposit insurance does not guarantee every financial product or every loss. It covers qualifying deposits at insured institutions up to a legal limit, while investments such as shares, bonds, and mutual funds are not insured in the same way.

The FDIC is also associated with bank supervision and the resolution of failed insured banks. It is often confused with the Federal Reserve, which conducts monetary policy and provides other central-bank functions. The two agencies are separate parts of the U.S. financial system.