Deposit Insurance Corporation

A Deposit Insurance Corporation is a government or independent organization that protects depositors’ funds in banks and financial institutions. If a bank fails or goes bankrupt, the corporation ensures that depositors get back their insured deposits, up to a certain limit. This helps maintain trust in the banking system, encourages saving, and reduces the risk of bank runs. The corporation’s primary goal is to provide financial stability by insuring deposits, promoting confidence among depositors, and preventing panic during financial crises.