Federal Savings and Loan Insurance Corporation Law and Legal Definition

The Federal Savings and Loan Insurance Corporation (FSLIC) was a former subsidiary of the Federal Home Loan Bank. It was created as part of the National Housing Act of 1934. The FSLIC administered deposit insurance for savings and loan institutions in the U.S. The FSLIC was similar to the Federal Deposit Insurance Corporation (FDIC) and was created in 1934; a year after the FDIC was created to insure deposits in commercial banks.

The FSLIC was administered by the Federal Home Loan Bank Board. In the 1980s, during the savings and loan crisis, the FSLIC became insolvent. The FSLIC was abolished by the Financial Institutions Reform, Recovery, and Enforcement Act of 1989. This Act transferred the responsibility for savings and loan deposit insurance to the FDIC. All assets previously held by FSLIC were transferred to the Savings Association Insurance Fund (SAIF), a division of the FDIC.