Which federal agency was established to insure bank deposits?

The federal agency established to insure bank deposits is the Federal Deposit Insurance Corporation (FDIC). Created in 1933 during the Great Depression, the FDIC aims to maintain public confidence in the U.S. financial system by protecting depositors against the loss of their insured deposits if an FDIC-insured bank or savings institution fails. This insurance protects individual accounts up to a certain limit, which provides a safety net for depositors, thereby helping to prevent bank runs and stabilizing the banking system.

Other agencies mentioned, such as the Federal Housing Administration (FHA), Federal Housing Finance Agency (FHFA), and Federal National Mortgage Association (FNMA), have different roles primarily focused on housing finance rather than directly insuring bank deposits. FHA provides mortgage insurance on loans made by approved lenders, while FHFA regulates and oversees government-sponsored enterprises like Fannie Mae (FNMA), which focuses on increasing the availability of mortgage financing.