PRESS RELEASE
Federal Deposit Insurance Corporation Each Depositor insured to at least $250,000
FOR IMMEDIATE RELEASE
October 11, 2011
Media Contact:
Andrew Gray
(202) 898-7192
Congress created the Federal Deposit Insurance Corporation in 1933 to restore public confidence in the nation's
banking system. It promotes the safety and soundness of these institutions by identifying, monitoring and addressing
risks to which they are exposed. The FDIC receives no federal tax dollars — insured financial institutions fund its
operations.
FDIC press releases and other information are available on the Internet at www.fdic.gov, by subscription electronically
(go to www.fdic.gov/about/subscriptions/index.html) and may also be obtained through the FDIC's Public Information
Center (877-275-3342 or 703-562-2200). PR-161-2011
FDIC Board Announces Projected Deposit Insurance Fund Losses,
Income, and Reserve Ratios for the Restoration Plan
The Federal Deposit Insurance Corporation (FDIC) today updated its loss, income, and
reserve ratio projections for the Deposit Insurance Fund (DIF) over the next several
years. The projected cost of FDIC-insured institution failures for the five-year period
from 2011 through 2015 is $19 billion, compared to estimated losses of $23 billion for
banks that failed in 2010 alone. While these loss projections are subject to considerable
uncertainty, under these projections and current assessment rates, the fund should
reach 1.15 percent of estimated insured deposits in 2018.
The Dodd-Frank Wall Street Reform and Consumer Protection Act requires that the
fund reserve ratio reach 1.35 percent by September 30, 2020. A future rulemaking will
implement the requirement in Dodd-Frank that the FDIC offset the effect of increasing
the reserve ratio from 1.15 percent to 1.35 percent on institutions with assets of less
than $10 billion.
After seven consecutive quarters of negative balances, the DIF became positive in the
second quarter of 2011, standing at $3.9 billion at June 30. The DIF balance has
increased for six quarters in a row, following seven quarters of decline. Cumulatively,
the DIF balance has risen by almost $25 billion from its negative $20.9 billion low point
at the end of 2009.
"The assessment that the insurance fund remains on the path to recovery and on track
to meet the goals established by Congress is welcome news," said Acting Chairman
Martin J. Gruenberg. "As we seek to stay on track, it's important to always be mindful of
the challenges we face and ongoing risks to the insurance fund."
Federal Deposit Insurance Corporation Each Depositor insured to at least $250,000
FOR IMMEDIATE RELEASE
October 11, 2011
Media Contact:
Andrew Gray
(202) 898-7192
Congress created the Federal Deposit Insurance Corporation in 1933 to restore public confidence in the nation's
banking system. It promotes the safety and soundness of these institutions by identifying, monitoring and addressing
risks to which they are exposed. The FDIC receives no federal tax dollars — insured financial institutions fund its
operations.
FDIC press releases and other information are available on the Internet at www.fdic.gov, by subscription electronically
(go to www.fdic.gov/about/subscriptions/index.html) and may also be obtained through the FDIC's Public Information
Center (877-275-3342 or 703-562-2200). PR-161-2011
FDIC Board Announces Projected Deposit Insurance Fund Losses,
Income, and Reserve Ratios for the Restoration Plan
The Federal Deposit Insurance Corporation (FDIC) today updated its loss, income, and
reserve ratio projections for the Deposit Insurance Fund (DIF) over the next several
years. The projected cost of FDIC-insured institution failures for the five-year period
from 2011 through 2015 is $19 billion, compared to estimated losses of $23 billion for
banks that failed in 2010 alone. While these loss projections are subject to considerable
uncertainty, under these projections and current assessment rates, the fund should
reach 1.15 percent of estimated insured deposits in 2018.
The Dodd-Frank Wall Street Reform and Consumer Protection Act requires that the
fund reserve ratio reach 1.35 percent by September 30, 2020. A future rulemaking will
implement the requirement in Dodd-Frank that the FDIC offset the effect of increasing
the reserve ratio from 1.15 percent to 1.35 percent on institutions with assets of less
than $10 billion.
After seven consecutive quarters of negative balances, the DIF became positive in the
second quarter of 2011, standing at $3.9 billion at June 30. The DIF balance has
increased for six quarters in a row, following seven quarters of decline. Cumulatively,
the DIF balance has risen by almost $25 billion from its negative $20.9 billion low point
at the end of 2009.
"The assessment that the insurance fund remains on the path to recovery and on track
to meet the goals established by Congress is welcome news," said Acting Chairman
Martin J. Gruenberg. "As we seek to stay on track, it's important to always be mindful of
the challenges we face and ongoing risks to the insurance fund."