Federal Deposit Insurance Corporation
550 17th Street NW, Washington, DC 20429 Division of Supervision
Bank Insurance Fund Assessments
FIL-99-96
December 9, 1996
TO: CHIEF EXECUTIVE OFFICER
SUBJECT: BIF Assessment Rates for the First Semiannual Assessment Period of 1997
The FDIC Board of Directors voted on November 26, 1996, to retain the existing Bank
Insurance Fund (BIF) assessment schedule of 0 to 27 basis points (annual rates) for the first
semiannual period of 1997, and to collect an assessment against BIF-assessable deposits to be
paid to the Financing Corporation (FICO). In addition, the Board eliminated the $2,000 minimum
annual assessment and authorized the refund of the fourth-quarter minimum assessment of
$500 paid by certain BIF-insured institutions on September 30, 1996. Details of the Board's
action will be included in a forthcoming Federal Register notice.
Assessment Rate
As a result of the Board's action, BIF assessment rates will continue to range from 0 to 27 basis
points. The difference between the existing rate schedule and the schedule placed in effect for
the January 1, 1997, assessment period is that the new schedule will no longer include a
reference to a minimum assessment amount. This change results from the recently enacted
Deposit Insurance Funds Act of 1996 (Funds Act), which eliminated a statutorily-imposed
minimum assessment amount. With this modification, the new rate schedule will result in an
estimated average annual assessment rate of approximately 0.17 basis points; the estimated
annual revenue produced by this rate schedule will be approximately $43 million.
In connection with the elimination of the mandatory minimum assessment amount, the Board
has decided to refund the $500 minimum assessment paid to the BIF by certain institutions for
the fourth quarter of 1996. Any refund due, including interest, will be reflected in the invoices to
be mailed on December 11, 1996, and will be netted against any assessments due for the first
quarter of 1997. Collection will take place on January 2, 1997.
FICO Assessment
The Funds Act authorizes the FICO to levy assessments on BIF-assessable deposits and
stipulates that the rate must equal one-fifth the FICO assessment rate that is applied to deposits
assessable by the Savings Association Insurance Fund (SAIF). The actual assessment rates for
FICO will be determined by deposit data from the September 30, 1996, Call Reports, when
processing is completed. Based on June 30, 1996, deposit data, the upcoming assessment
invoice would reflect a FICO rate of approximately 1.29 basis points, on an annual basis, for
BIF-assessable deposits, and approximately 6.44 basis points for SAIF-assessable deposits.
Invoices for FICO assessments will be mailed with BIF and SAIF invoices on December 11,
1996, and collection for FICO will take place via direct debit on the same collection date
established for BIF and SAIF assessments, January 2, 1997.
Questions regarding these matters should be directed to the FDIC's toll-free Assessment
Hotline at 1-800-759-6596 (202-898-7090 in the Washington, D.C., area) between 8:30 AM and
4:30 PM, Eastern Time.
Nicholas J. Ketcha Jr.
DirectorInactive
550 17th Street NW, Washington, DC 20429 Division of Supervision
Bank Insurance Fund Assessments
FIL-99-96
December 9, 1996
TO: CHIEF EXECUTIVE OFFICER
SUBJECT: BIF Assessment Rates for the First Semiannual Assessment Period of 1997
The FDIC Board of Directors voted on November 26, 1996, to retain the existing Bank
Insurance Fund (BIF) assessment schedule of 0 to 27 basis points (annual rates) for the first
semiannual period of 1997, and to collect an assessment against BIF-assessable deposits to be
paid to the Financing Corporation (FICO). In addition, the Board eliminated the $2,000 minimum
annual assessment and authorized the refund of the fourth-quarter minimum assessment of
$500 paid by certain BIF-insured institutions on September 30, 1996. Details of the Board's
action will be included in a forthcoming Federal Register notice.
Assessment Rate
As a result of the Board's action, BIF assessment rates will continue to range from 0 to 27 basis
points. The difference between the existing rate schedule and the schedule placed in effect for
the January 1, 1997, assessment period is that the new schedule will no longer include a
reference to a minimum assessment amount. This change results from the recently enacted
Deposit Insurance Funds Act of 1996 (Funds Act), which eliminated a statutorily-imposed
minimum assessment amount. With this modification, the new rate schedule will result in an
estimated average annual assessment rate of approximately 0.17 basis points; the estimated
annual revenue produced by this rate schedule will be approximately $43 million.
In connection with the elimination of the mandatory minimum assessment amount, the Board
has decided to refund the $500 minimum assessment paid to the BIF by certain institutions for
the fourth quarter of 1996. Any refund due, including interest, will be reflected in the invoices to
be mailed on December 11, 1996, and will be netted against any assessments due for the first
quarter of 1997. Collection will take place on January 2, 1997.
FICO Assessment
The Funds Act authorizes the FICO to levy assessments on BIF-assessable deposits and
stipulates that the rate must equal one-fifth the FICO assessment rate that is applied to deposits
assessable by the Savings Association Insurance Fund (SAIF). The actual assessment rates for
FICO will be determined by deposit data from the September 30, 1996, Call Reports, when
processing is completed. Based on June 30, 1996, deposit data, the upcoming assessment
invoice would reflect a FICO rate of approximately 1.29 basis points, on an annual basis, for
BIF-assessable deposits, and approximately 6.44 basis points for SAIF-assessable deposits.
Invoices for FICO assessments will be mailed with BIF and SAIF invoices on December 11,
1996, and collection for FICO will take place via direct debit on the same collection date
established for BIF and SAIF assessments, January 2, 1997.
Questions regarding these matters should be directed to the FDIC's toll-free Assessment
Hotline at 1-800-759-6596 (202-898-7090 in the Washington, D.C., area) between 8:30 AM and
4:30 PM, Eastern Time.
Nicholas J. Ketcha Jr.
DirectorInactive
Distribution: Insured Commercial Banks and FDIC-Supervised Savings Banks
Note: Paper copies of FDIC financial institution letters may be obtained through the FDIC's Public
Information Center, 801 17th Street, N.W., Room 100, Washington, D.C. 20434 ((703) 562-2200)
Last Updated 07/13/1999 communications@fdic.govInactive
Note: Paper copies of FDIC financial institution letters may be obtained through the FDIC's Public
Information Center, 801 17th Street, N.W., Room 100, Washington, D.C. 20434 ((703) 562-2200)
Last Updated 07/13/1999 communications@fdic.govInactive