The Federal Deposit Insurance Corporation released its projected figure on its depots insurance fund according to which bank failures are expected to cost almost $12 billion by the year 2016. FDIC published a detailed report on its deposit insurance fund which is pooled by banks and is used for protection of depositors incase a certain financial institutions fails.

According to the report, deposit insurance fund has consistently increased for eight consecutive quarters and currently stands at $11.8 billion. If we look at it back in 2009, the fund balance stood with a negative figure of $20.9 billion and compared to 2009 shows the increase of $33 billion. This sure raises many concerns among economists.

Some analysts also believe that the projected fund figure by FDIC is much healthier balance and the agency has been very conservative in regards for counting failures that have not yet happened, it is also expected that banks will provide the figure of $65 billion in revenue to the agency in the next five years.

In earlier report in October, 2011, the agency forecasted that bank failures for the five year period ending 2015 would cost almost $19 billion. The latest report also claims that the earlier projections also remain the same.