Deposit Insurance Assessments
Small Bank Credits
Large Bank Surcharges Have Ended - Small Bank Credits Awarded
On September 30, 2018, the Deposit Insurance Fund Reserve Ratio reached 1.36 percent. Because the Reserve Ratio has exceeded 1.35 percent, two deposit insurance assessment changes occurred under the FDIC regulations:
- Surcharges on large banks (total consolidated assets of $10 billion or more) ended; the last surcharge on large banks was collected on December 28, 2018.
- Small banks (total consolidated assets of less than $10 billion) were awarded assessment credits for the portion of their assessments that contributed to the growth in the reserve ratio from 1.15 percent to 1.35 percent, to be applied when the reserve ratio is at least 1.38 percent.
Notification of Small Bank Assessment Credits
Preliminary Notifications of Small Bank Assessment Credits were issued to all eligible banks on January 24, 2019, through FDICconnect. The notices and credit amounts are now final. (Call Report amendments made after December 28, 2018, do not affect a bank’s credit share.)
Application of Small Bank Credits begins with the September 2019 invoice
The assessment regulations (12 CFR Part 327) provide that after the reserve ratio reaches 1.38 percent (and provided that it remains at least 1.38 percent), the FDIC will automatically apply small bank credits to reduce small banks’ regular deposit insurance assessments up to the full amount of their assessments or the full amount of their credits, whichever is less. The reserve ratio reached 1.40 on June 30, 2019. Therefore, credits were first applied on the September 30, 2019 invoice. Credits will be applied until exhausted. Please see the August 20, 2019, Notice of Proposed Rulemaking that would amend the Small Bank Credits regulation to permit credit usage when the reserve ratio is at least 1.35 percent (rather than 1.38%).
Reserve Ratio Information
The reserve ratio is published in the Quarterly Banking Profile (QBP). This information becomes publicly available about one month before that quarter’s assessments are paid. The QBP publishing schedule is:
|Call Data date||Approximate Publishing date||Invoice Payment Date*|
*If the 30th is a Saturday or Sunday, invoice payment date is the Friday before.
For the current reserve ratio, go to the QBP Statistics at a Glance and select FDIC Historical Trends.
Mergers and Consolidations
If a credit-accruing bank acquired another bank through merger or consolidation that was owed credits before the reserve ratio reached 1.35, the acquiring bank’s credit was computed by including quarterly assessment bases of the acquired institution for the quarters before the acquisition.
If a bank acquires another bank that is owed credits through a legal merger or consolidation after the reserve ratio reached 1.35 percent, the acquiring bank is successor to any credits of the acquired small bank. Other than through legal merger or consolidation, credits are not transferable.
Requests for Review
Any bank that disagrees with the FDIC’s application of its credits, may submit a written request for review and any supporting documentation to the FDIC’s Division of Finance within 30 days after the affected assessment payment. Requests for review should be addressed to:
Federal Deposit Insurance Corporation
Attention: Deputy Director, Division of Finance
3501 Fairfax Drive, Room E-5080
Arlington, Virginia 22226-3500
Questions and Additional Information
If you have questions about the small bank assessment credits, you may call the FDIC Assessments Hotline at 1-800-759-6596 (select option 2) or email us at email@example.com.