Does the NDIC finance its Operations from the Insurance Fund?
No. NDIC finances all its overhead and
administrative expenses from its investment income. The main source of
income for the NDIC is the proceeds from investment of the insurance fund in
securities issued by the Federal Government. The insurance fund is used
only for paying insured deposits when an insured institution fails as well as
for granting financial assistance to deserving participating institutions. The
NDIC does not enjoy subvention from the government.
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