The Federal Deposit Insurance Corporation (FDIC) board of directors recently approved a notice of proposed rulemaking that would revise the FDIC’s assessment regulations for all FDIC-insured institutions. The proposal includes three changes.
The threshold used for determining a small and large institution for purposes of the FDIC’s assessment regulations would increase from $10 billion in assets to $30 billion. There would be adjustments periodically to the threshold pursuant to an indexing methodology.
The initial base assessment rate schedules for all institutions would decrease as a consequence of
recent growth in the Deposit Insurance Fund and the reserve ratio. The rate schedules would decrease by two basis points for small institutions and by one basis point for institutions meeting the proposed definition of a large institution or that are highly complex.
There would be a downward resolution readiness adjustment of up to one basis point to a large or highly complex institution’s assessment rate after successfully completing a virtual data room testing exercise and/or providing temporary access to certain service providers and internal systems.
Comments on the proposed rule will be accepted for 60 days after publication in the Federal Register, and the FDIC has assessment rate calculators available on its website.