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%. Because the Reserve Ratio has exceeded 1.35%, 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% to 1.35% to be applied when the reserve ratio is at least 1.35%. Credit application is explained below.
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 and the notices and credit amounts became final. (Call Report amendments made after December 28, 2018, did not affect a bank’s credit.)
Application of Small Bank Credits
The Reserve Ratio reached 1.40% as of June 30, 2019, and the FDIC first applied small bank credits on the September 30, 2019 assessment invoice (for the second quarter of 2019). The FDIC continued to apply small bank credits so long as the Reserve Ratio was at least 1.35%. After applying small bank credits for four quarters, the FDIC would remit to banks the value of any remaining small bank credits in the next assessment period in which the Reserve Ratio was at least 1.35%.
Small Bank Credits End
The Reserve Ratio fell to 1.30% as of June 30, 2020 as result of extraordinary insured deposit growth caused by an unprecedented inflow of more than $1 trillion in estimated insured deposits in the first half of 2020 stemming mainly from the COVID-19 pandemic, specifically monetary policy actions, direct government assistance to consumers and businesses, and an overall reduction in spending. On September 15, 2020, the FDIC Board of Directors waived the provision of the FDIC’s assessment regulations requiring that the reserve ratio must be at least 1.35 percent for the FDIC to remit the full nominal value of an insured depository institution’s remaining assessment credits, Waiver of 12 CFR § 327.11(c)(13) Requiring that the Reserve Ratio Must be at Least 1.35 Percent for the FDIC to Remit an Institution’s Remaining Assessment Credits. All remaining small bank credits were refunded on the September 30, 2020, assessment invoice, ending the application of small bank credits.
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%, 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 firstname.lastname@example.org.