March 15, 2016 Media contact:
Barbara Hagenbaugh
(202) 898-6993
bhagenbaugh@fdic.gov
FDIC Board Adopts Final Rule to Increase Deposit Insurance Fund to
Statutorily Required Level
The Board of Directors of the Federal Deposit Insurance Corporation (FDIC) today
approved a final rule to increase the Deposit Insurance Fund (DIF) to the statutorily
required minimum level of 1.35 percent.
Congress in the Dodd-Frank Wall Street Reform and Consumer Protection Act
increased the minimum for the DIF reserve ratio, the ratio of the amount in the fund to
insured deposits, from 1.15 percent to 1.35 percent and required that the ratio reach that
level by September 30, 2020. Further, the Dodd-Frank Act also made banks with $10
billion or more in total assets responsible for the increase from 1.15 percent to 1.35
percent.
Under a rule adopted by the FDIC in 2011, regular assessment rates for all banks will
decline when the reserve ratio reaches 1.15 percent, which the FDIC expects will occur
in the first half of 2016. Banks with total assets of less than $10 billion will have
substantially lower assessment rates under the 2011 rule.
The final rule approved today will impose on banks with at least $10 billion in assets a
surcharge of 4.5 cents per $100 of their assessment base, after making certain
adjustments. The FDIC expects the reserve ratio will likely reach 1.35 percent after
approximately two years of payments of the surcharges.
The final rule will become effective on July 1. If the reserve ratio reaches 1.15 percent
before that date, surcharges will begin July 1. If the reserve ratio has not reached
1.15 percent by that date, surcharges will begin the first quarter after the reserve
ratio reaches 1.15 percent.
“The FDIC is taking a balanced approach that maintains stable and predictable deposit
insurance assessments,” FDIC Chairman Martin J. Gruenberg said. “At the same time
assessment rates will decline for all banks, larger institutions will pay a surcharge over a
period of time. With these surcharges, the Deposit Insurance Fund is expected to reach
the statutory minimum level ahead of the statutory deadline of 2020, reducing the risk
that the FDIC will have to raise rates unexpectedly in the event of stress in the financial
sector.”
The final rule largely adopts the proposed rule, which was published for comment in
the Federal Register in November, with minor changes.
Barbara Hagenbaugh
(202) 898-6993
bhagenbaugh@fdic.gov
FDIC Board Adopts Final Rule to Increase Deposit Insurance Fund to
Statutorily Required Level
The Board of Directors of the Federal Deposit Insurance Corporation (FDIC) today
approved a final rule to increase the Deposit Insurance Fund (DIF) to the statutorily
required minimum level of 1.35 percent.
Congress in the Dodd-Frank Wall Street Reform and Consumer Protection Act
increased the minimum for the DIF reserve ratio, the ratio of the amount in the fund to
insured deposits, from 1.15 percent to 1.35 percent and required that the ratio reach that
level by September 30, 2020. Further, the Dodd-Frank Act also made banks with $10
billion or more in total assets responsible for the increase from 1.15 percent to 1.35
percent.
Under a rule adopted by the FDIC in 2011, regular assessment rates for all banks will
decline when the reserve ratio reaches 1.15 percent, which the FDIC expects will occur
in the first half of 2016. Banks with total assets of less than $10 billion will have
substantially lower assessment rates under the 2011 rule.
The final rule approved today will impose on banks with at least $10 billion in assets a
surcharge of 4.5 cents per $100 of their assessment base, after making certain
adjustments. The FDIC expects the reserve ratio will likely reach 1.35 percent after
approximately two years of payments of the surcharges.
The final rule will become effective on July 1. If the reserve ratio reaches 1.15 percent
before that date, surcharges will begin July 1. If the reserve ratio has not reached
1.15 percent by that date, surcharges will begin the first quarter after the reserve
ratio reaches 1.15 percent.
“The FDIC is taking a balanced approach that maintains stable and predictable deposit
insurance assessments,” FDIC Chairman Martin J. Gruenberg said. “At the same time
assessment rates will decline for all banks, larger institutions will pay a surcharge over a
period of time. With these surcharges, the Deposit Insurance Fund is expected to reach
the statutory minimum level ahead of the statutory deadline of 2020, reducing the risk
that the FDIC will have to raise rates unexpectedly in the event of stress in the financial
sector.”
The final rule largely adopts the proposed rule, which was published for comment in
the Federal Register in November, with minor changes.
Congress created the Federal Deposit Insurance Corporation in 1933 to restore public confidence in the nation’s banking system.
The FDIC insures deposits at the nation’s banks and savings associations, 6,270 as of September 30, 2015. 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-21-2016
The primary purposes of the Deposit Insurance Fund are to protect the depositors of
insured banks and to resolve failed banks. The DIF is funded mainly through quarterly
assessments on insured banks.
The DIF’s balance was $72.6 billion as of December 31. The reserve ratio at the end of
2015 was 1.11 percent.
Attachments:
Final Rule
Statement by FDIC Chairman Martin J. Gruenberg
###
The FDIC insures deposits at the nation’s banks and savings associations, 6,270 as of September 30, 2015. 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-21-2016
The primary purposes of the Deposit Insurance Fund are to protect the depositors of
insured banks and to resolve failed banks. The DIF is funded mainly through quarterly
assessments on insured banks.
The DIF’s balance was $72.6 billion as of December 31. The reserve ratio at the end of
2015 was 1.11 percent.
Attachments:
Final Rule
Statement by FDIC Chairman Martin J. Gruenberg
###