FDIC Adopts Final Rule to Amend How Small Banks are Assessed for Deposit Insurance — 2016-04-26

The Board of Directors of the Federal Deposit Insurance Corporation (FDIC) today approved a final rule that amends the way small banks are assessed for deposit insurance. The final rule affects banks with less than $10 billion in assets that have been FDIC insured for at least five years. It updates the data and revises the methodology that the FDIC uses to determine risk-based assessments for these institutions to better reflect risks and to help ensure that banks that take on greater risks pay more for deposit insurance than their less risky counterparts. “This rule will allow future assessments to better differentiate riskier banks from safer banks,” FDIC Chairman Martin J. Gruenberg said. “Using the FDIC’s experience during the recent financial crisis, this rule will better allocate the costs of maintaining a strong Deposit Insurance Fund.