The Federal Deposit Insurance Corporation (FDIC) is a U.S. government agency that protects depositors by insuring deposits in member banks. Established in 1933 during the Great Depression, the FDIC aims to maintain public confidence in the banking system. It covers deposits up to $250,000 per depositor, per insured bank, ensuring that individuals do not lose their savings if a bank fails. In addition to insuring deposits, the FDIC also supervises and regulates financial institutions to promote sound banking practices. It plays a crucial role in maintaining stability in the financial system and protecting consumers, contributing to the overall health of the economy.