WASHINGTON, Sept. 10 (Xinhua) -- The U.S. Federal Deposit Insurance Corp. (FDIC) on Tuesday approved a final rule stipulating that deposits in foreign branches of American banks are not covered by the FDIC.
The purpose of the rule is to ensure the U.S. will not become " a potential global deposit insurer", said FDIC in a statement.
Deposits in foreign branches of U.S. banks have doubled since 2001 and total approximately one trillion U.S. dollars now, according to U.S. official data.
"The final rule protects the Deposit Insurance Fund, while at the same time both the FDIC's commitment to maintaining financial stability through the prompt payment of deposit insurance and the evolving nature of the global banking system," said FDIC Chairman Martin Gruenberg.
FDIC was created by the U.S. Congress in 1933 to restore public confidence in the country's banking system. The FDIC now offers insurance to deposits at the country's 6,940 banks and savings associations and the net worth of the Deposit Insurance Fund rose to 37.9 U.S. billion dollars as of June 30, 2013.