FDIC Issues Proposed Rule on Certain Assessment Credits — 2019-08-20

The Federal Deposit Insurance Corporation (FDIC) today approved a notice of proposed rulemaking that would amend the deposit insurance assessment regulations that govern the use of small bank assessment credits and one-time assessment credits. Small bank credits were awarded to insured depository institutions (IDIs) that had less than $10 billion in assets, and that contributed to the growth in the Deposit Insurance Fund (DIF) reserve ratio at some point between July 1, 2016, and September 30, 2018, when the reserve ratio was between 1.15 percent and 1.35 percent. The proposal would require the FDIC to automatically apply small bank credits to quarterly assessments when the reserve ratio is at least 1.35 percent, rather than 1.38 percent, as required under current regulation. After applying credits for eight quarters, the FDIC would remit to IDIs the nominal value of any remaining small bank credits.