Statement of CFPB Director Rohit Chopra, Member, FDIC Board of Directors, on Deposit Insurance Coverage in the Freely Associated States of the Pacific
The United States recently renewed its special ties with the Federated States of Micronesia, the Republic of the Marshall Islands, and Republic of Palau, collectively the Freely Associated States. These independent nations were previously administered by the United States.1 Through the Compacts of Free Association, first signed in 1986 and renewed most recently in March 2024, these countries maintain critical connections with the United States that will enhance our collective security.
Through the Compacts, the FDIC is able to provide federal deposit insurance to banks chartered by the Freely Associated States. A few U.S.-charted banks also operate legacy branches in these countries, which helps serve depositors and further strengthens our economic ties to the region. For the avoidance of doubt, the FDIC is issuing an interim final rule that clarifies that the legacy branches of U.S. banks are also insured by the FDIC.
Given the aggressive posture taken by the Chinese Communist Party toward our allies in the region, I am pleased the United States is renewing our commitment to our partners in the Pacific. The action today by the FDIC is an important recognition of our longstanding alliance in this region.
The Consumer Financial Protection Bureau is a 21st century agency that implements and enforces Federal consumer financial law and ensures that markets for consumer financial products are fair, transparent, and competitive. For more information, visit www.consumerfinance.gov.