Vol. 76 Friday,
No. 38 February 25, 2011
Part II
Federal Deposit Insurance Corporation
12 CFR Part 327
Assessments, Large Bank Pricing; Final Rule
VerDate Mar<15>2010 18:14 Feb 24, 2011 Jkt 223001 PO 00000 Frm 00001 Fmt 4717 Sfmt 4717 E:\FR\FM\25FER2.SGM 25FER2
mstockstill on DSKH9S0YB1PROD with RULES2
No. 38 February 25, 2011
Part II
Federal Deposit Insurance Corporation
12 CFR Part 327
Assessments, Large Bank Pricing; Final Rule
VerDate Mar<15>2010 18:14 Feb 24, 2011 Jkt 223001 PO 00000 Frm 00001 Fmt 4717 Sfmt 4717 E:\FR\FM\25FER2.SGM 25FER2
mstockstill on DSKH9S0YB1PROD with RULES2
10672 Federal Register / Vol. 76, No. 38 / Friday, February 25, 2011 / Rules and Regulations
1 Within Risk Category I, there are different
assessment systems for large and small insured
depository institutions, but the possible range of
rates is the same for all insured depository
institutions in Risk Category I.
2 Unsecured debt excludes debt guaranteed by the
FDIC under its Temporary Liquidity Guarantee
Program.
3 The initial base assessment rate cannot increase
more than 50 percent as a result of the secured
liability adjustment.
4 12 CFR 327.9(d)(7).
FEDERAL DEPOSIT INSURANCE
CORPORATION
12 CFR Part 327
RIN 3064–AD66
Assessments, Large Bank Pricing
AGENCY: Federal Deposit Insurance
Corporation (FDIC).
ACTION: Final rule.
SUMMARY: The FDIC is amending its
regulations to implement revisions to
the Federal Deposit Insurance Act made
by the Dodd-Frank Wall Street Reform
and Consumer Protection Act (‘‘Dodd-
Frank’’) by modifying the definition of
an institution’s deposit insurance
assessment base; to change the
assessment rate adjustments; to revise
the deposit insurance assessment rate
schedules in light of the new assessment
base and altered adjustments; to
implement Dodd-Frank’s dividend
provisions; to revise the large insured
depository institution assessment
system to better differentiate for risk and
better take into account losses from
large institution failures that the FDIC
may incur; and to make technical and
other changes to the FDIC’s assessment
rules.
DATES: Effective Date: April 1, 2011.
FOR FURTHER INFORMATION CONTACT:
Munsell St. Clair, Chief, Banking and
Regulatory Policy Section, Division of
Insurance and Research, (202) 898–
8967, Rose Kushmeider, Senior
Economist, Division of Insurance and
Research, (202) 898–3861; Heather
Etner, Financial Analyst, Division of
Insurance and Research, (202) 898–
6796; Lisa Ryu, Chief, Large Bank
Pricing Section, Division of Insurance
and Research, (202) 898–3538; Christine
Bradley, Senior Policy Analyst, Banking
and Regulatory Policy Section, Division
of Insurance and Research, (202) 898–
8951; Brenda Bruno, Senior Financial
Analyst, Division of Insurance and
Research, (630) 241–0359 x 8312; Robert
L. Burns, Chief, Exam Support and
Analysis, Division of Supervision and
Consumer Protection (704) 333–3132
x 4215; Christopher Bellotto, Counsel,
Legal Division, (202) 898–3801; and
Sheikha Kapoor, Counsel, Legal
Division, (202) 898–3960, 550 17th
Street, NW., Washington, DC 20429.
SUPPLEMENTARY INFORMATION:
I. Dates
Except as specifically provided, the
final rule will take effect for the quarter
beginning April 1, 2011, and will be
reflected in the June 30, 2011, fund
balance and the invoices for
assessments due September 30, 2011.
II. Background
A. Current Deposit Insurance
Assessments
At present, for deposit insurance
assessment purposes, an insured
depository institution is placed into one
of four risk categories each quarter,
determined primarily by the
institution’s capital levels and
supervisory evaluation. Current annual
initial base assessment rates are set forth
in Table 1 below.
TABLE 1—CURRENT INITIAL BASE ASSESSMENT RATES 1 RISK CATEGORY
I * II III IV
Minimum Maximum
Annual Rates (in basis points) ................................................................. 12 16 22 32 45
* Rates for institutions that do not pay the minimum or maximum rate will vary between these rates.
Within Risk Category I, initial base
assessment rates vary between 12 and
16 basis points. For all institutions in
Risk Category I, rates depend upon
weighted average CAMELS component
ratings and certain financial ratios. For
a large institution (generally, one with at
least $10 billion in assets) that has debt
issuer ratings, rates also depend upon
these ratings.
Initial base assessment rates are
subject to adjustment. An insured
depository institution’s total base
assessment rate can vary from its initial
base assessment rate as the result of an
unsecured debt adjustment and a
secured liability adjustment. The
unsecured debt adjustment lowers an
insured depository institution’s initial
base assessment rate using its ratio of
long-term unsecured debt (and, for
small insured depository institutions,
certain amounts of Tier 1 capital) to
domestic deposits.2 The secured
liability adjustment increases an insured
depository institution’s initial base
assessment rate if the insured
depository institution’s ratio of secured
liabilities to domestic deposits is greater
than 25 percent.3 In addition, insured
depository institutions in Risk
Categories II, III and IV are subject to an
adjustment for large levels of brokered
deposits (the brokered deposit
adjustment).4
After applying all possible
adjustments, the current minimum and
maximum total annual base assessment
rates for each risk category are set out
in Table 2 below.
VerDate Mar<15>2010 18:14 Feb 24, 2011 Jkt 223001 PO 00000 Frm 00002 Fmt 4701 Sfmt 4700 E:\FR\FM\25FER2.SGM 25FER2
mstockstill on DSKH9S0YB1PROD with RULES2
1 Within Risk Category I, there are different
assessment systems for large and small insured
depository institutions, but the possible range of
rates is the same for all insured depository
institutions in Risk Category I.
2 Unsecured debt excludes debt guaranteed by the
FDIC under its Temporary Liquidity Guarantee
Program.
3 The initial base assessment rate cannot increase
more than 50 percent as a result of the secured
liability adjustment.
4 12 CFR 327.9(d)(7).
FEDERAL DEPOSIT INSURANCE
CORPORATION
12 CFR Part 327
RIN 3064–AD66
Assessments, Large Bank Pricing
AGENCY: Federal Deposit Insurance
Corporation (FDIC).
ACTION: Final rule.
SUMMARY: The FDIC is amending its
regulations to implement revisions to
the Federal Deposit Insurance Act made
by the Dodd-Frank Wall Street Reform
and Consumer Protection Act (‘‘Dodd-
Frank’’) by modifying the definition of
an institution’s deposit insurance
assessment base; to change the
assessment rate adjustments; to revise
the deposit insurance assessment rate
schedules in light of the new assessment
base and altered adjustments; to
implement Dodd-Frank’s dividend
provisions; to revise the large insured
depository institution assessment
system to better differentiate for risk and
better take into account losses from
large institution failures that the FDIC
may incur; and to make technical and
other changes to the FDIC’s assessment
rules.
DATES: Effective Date: April 1, 2011.
FOR FURTHER INFORMATION CONTACT:
Munsell St. Clair, Chief, Banking and
Regulatory Policy Section, Division of
Insurance and Research, (202) 898–
8967, Rose Kushmeider, Senior
Economist, Division of Insurance and
Research, (202) 898–3861; Heather
Etner, Financial Analyst, Division of
Insurance and Research, (202) 898–
6796; Lisa Ryu, Chief, Large Bank
Pricing Section, Division of Insurance
and Research, (202) 898–3538; Christine
Bradley, Senior Policy Analyst, Banking
and Regulatory Policy Section, Division
of Insurance and Research, (202) 898–
8951; Brenda Bruno, Senior Financial
Analyst, Division of Insurance and
Research, (630) 241–0359 x 8312; Robert
L. Burns, Chief, Exam Support and
Analysis, Division of Supervision and
Consumer Protection (704) 333–3132
x 4215; Christopher Bellotto, Counsel,
Legal Division, (202) 898–3801; and
Sheikha Kapoor, Counsel, Legal
Division, (202) 898–3960, 550 17th
Street, NW., Washington, DC 20429.
SUPPLEMENTARY INFORMATION:
I. Dates
Except as specifically provided, the
final rule will take effect for the quarter
beginning April 1, 2011, and will be
reflected in the June 30, 2011, fund
balance and the invoices for
assessments due September 30, 2011.
II. Background
A. Current Deposit Insurance
Assessments
At present, for deposit insurance
assessment purposes, an insured
depository institution is placed into one
of four risk categories each quarter,
determined primarily by the
institution’s capital levels and
supervisory evaluation. Current annual
initial base assessment rates are set forth
in Table 1 below.
TABLE 1—CURRENT INITIAL BASE ASSESSMENT RATES 1 RISK CATEGORY
I * II III IV
Minimum Maximum
Annual Rates (in basis points) ................................................................. 12 16 22 32 45
* Rates for institutions that do not pay the minimum or maximum rate will vary between these rates.
Within Risk Category I, initial base
assessment rates vary between 12 and
16 basis points. For all institutions in
Risk Category I, rates depend upon
weighted average CAMELS component
ratings and certain financial ratios. For
a large institution (generally, one with at
least $10 billion in assets) that has debt
issuer ratings, rates also depend upon
these ratings.
Initial base assessment rates are
subject to adjustment. An insured
depository institution’s total base
assessment rate can vary from its initial
base assessment rate as the result of an
unsecured debt adjustment and a
secured liability adjustment. The
unsecured debt adjustment lowers an
insured depository institution’s initial
base assessment rate using its ratio of
long-term unsecured debt (and, for
small insured depository institutions,
certain amounts of Tier 1 capital) to
domestic deposits.2 The secured
liability adjustment increases an insured
depository institution’s initial base
assessment rate if the insured
depository institution’s ratio of secured
liabilities to domestic deposits is greater
than 25 percent.3 In addition, insured
depository institutions in Risk
Categories II, III and IV are subject to an
adjustment for large levels of brokered
deposits (the brokered deposit
adjustment).4
After applying all possible
adjustments, the current minimum and
maximum total annual base assessment
rates for each risk category are set out
in Table 2 below.
VerDate Mar<15>2010 18:14 Feb 24, 2011 Jkt 223001 PO 00000 Frm 00002 Fmt 4701 Sfmt 4700 E:\FR\FM\25FER2.SGM 25FER2
mstockstill on DSKH9S0YB1PROD with RULES2