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Deposit Insurance Assessments

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Assessment Rate Cases

Overview

    Prior to 2007, the FDIC Board of Directors reviewed premium rates semiannually. As of January 1, 1993, when the risk based assessment system was introduced, each bank and thrift paid an annual assessment rate of between 23 and 31 cents per $100 of assessable deposits. After the BIF reached the Designated Reserve Ratio (DRR) of 1.25 percent at the end of May 1995, the Board approved a reduction in assessment rates for BIF members to a range of between 4 and 31 cents per $100 in assessable deposits. In November 1995, the Board approved a new assessment rate structure for the BIF, with a range of between 0 and 27 cents per $100 in assessable deposits, effective January 1, 1996.

    The Deposit Insurance Funds Act of 1996 provided for the capitalization of the SAIF at the target DRR of 1.25 percent by means of a one-time special assessment on SAIF-member institutions. In December 1996, the Board lowered SAIF assessment rates to a range of between 0 and 27 cents per $100 in assessable deposits, which is identical to the rate schedule previously approved for BIF members. The new rates were effective October 1, 1996, for previously thrift-chartered SAIF members that became bank-chartered (known as “Sasser institutions”) and bank-chartered BIF members that held SAIF deposits (known as “BIF Oakar institutions”), and effective on January 1, 1997, for all other SAIF-insured institutions. As a result of the merger of the BIF and SAIF to form the DIF effective March 31, 2006, all insured institutions are subject to the same assessment rate schedule.

    The FDIC merged the Bank Insurance Fund (BIF) and the Savings Association Insurance Fund (SAIF) to form the Deposit Insurance Fund (DIF) on March 31, 2006 in accordance with the Federal Deposit Insurance Reform Act of 2005. As a result of the merger of the BIF and SAIF, all insured institutions are subject to the same assessment rate schedule. The amount each institution is assessed is based upon statutory factors that include the balance of insured deposits as well as the degree of risk the institution poses to the insurance fund.

    Insurance Fund Ratios - The Designated Reserve Ratio (DRR) is the level that the FDIC Board would like the Deposit Insurance Fund (DIF) to achieve as a percentage of estimated insured deposits. The Deposit Insurance Fund (DIF) Reserve Ratio is the current (or projected or historical) fund balance as a percentage of current (or projected or historical) estimated insured deposits. Previous legislation permitted the FDIC Board to set the DRR between 1.15 percent and 1.50 percent. Financial Regulatory Reform of 2010 (see FIL-8-2011 below) eliminated the maximum limitation of the reserve ratio and set the minimum to not less than 1.35 percent of estimated insured deposits or the comparable percentage of the assessment base. Financial Regulatory Reform also requires the FDIC to take the steps necessary to attain 1.35 percent by September 30, 2020, subject to an offsetting requirement for certain institutions. For more information on the DRR, please see Deposit Insurance Fund Management.

    Memoranda on Assessment Rate Cases and Outlook for the DIF
    Before 2007, assessment rate cases were semi-annual reports to the FDIC Board of Directors recommending the deposit insurance assessment rates for the DIF (or, prior to the fund merger, the BIF and the SAIF). Rates are no longer set semiannually in accordance with the risk-based assessments rule adopted in November 2006.

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    2012

    2011

    2010

    Prior Period Rate Cases

     

     

 




Last Updated 04/03/2013 Assessments@fdic.gov