The FDIC protects bank depositors by periodically examining the trust operations of FDIC-regulated financial institutions. These examinations determine if an institution's policies or the way it administers accounts has resulted in a contingent liability or estimated loss that could damage the institution's capital.
A financial institution's failure to perform its fiduciary duties and meet its responsibilities with appropriate care, skill, and prudence, and in accordance with fiduciary principles and applicable laws and regulations, could harm trust customers and expose the institution to possible loss or surcharge.
Trust Examination Manual
The FDIC's Trust Examination Manual is designed to assist regulators in planning and conducting regulatory examinations of trust departments. The manual serves as a comprehensive reference on trust concepts, principles, common and statutory law - both State and Federal - and regulations along with the applicable regulations that together govern the behavior of fiduciaries.
The Trust Examination Manual explains trust concepts and regulatory policies, as well as contains detailed text of applicable statutes, regulations, and interpretations.