Deposit Insurance Fund Management
Regarding the Deposit Insurance Fund (DIF) balance, the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 provides the following:
- Establishes a minimum Designated Reserve Ratio (DRR) of 1.35 percent of estimated insured deposits or the comparable percentage of the new assessment base, average consolidated total assets minus average tangible equity.
- If the reserve ratio falls below 1.35 percent, or the FDIC projects that the reserve ratio will, within 6 months, fall below 1.35 percent, the FDIC generally must adopt a restoration plan that provides that the DIF will return to 1.35 percent within 8 years.
- Notwithstanding that 8 year requirement, however, the FDIC must take steps as necessary for the reserve ratio to reach 1.35 percent of estimated insured deposits by September 30, 2020.
- The FDIC must offset the effect on small institutions (less than $10 billion in assets) of the requirement that the reserve ratio reach 1.35 percent by September 30, 2020, rather than 1.15 percent by the end of 2016.
- If the reserve ratio exceeds 1.5 percent, the FDIC must dividend to DIF members the amount above the amount necessary to maintain the DIF at 1.5 percent, but the FDIC Board of Directors may, in its sole discretion, suspend or limit the declaration of payment of dividends.
- For at least five years, the FDIC must make available to the public the reserve ratio and the Designated Reserve Ratio using both estimated insured deposits and the new assessment base.
Each year, the FDIC sets and publishes the DRR for the following year. The following table shows the DRR set for 2007-2019.
| Year | Designated Reserve Ratio (DRR) |
|---|---|
| 2019 | 2.00% |
| 2018 | 2.00% |
| 2017 | 2.00% |
| 2016 | 2.00% |
| 2015 | 2.00% |
| 2014 | 2.00% |
| 2013 | 2.00% |
| 2012 | 2.00% |
| 2011 | 2.00% |
| 2010 | 1.25% |
| 2009 | 1.25% |
| 2008 | 1.25% |
| 2007 | 1.25% |
As the reserve ratio dropped below 1.25 percent near the end of 2006, the FDIC began taking steps to maintain the Fund balance and liquidity. Following are the related actions taken by the FDIC Board since then. On September 30, 2018, the DIF reserve ratio reached 1.36 percent, exceeding the statutorily required minimum reserve ratio of 1.35 percent.
- 2018
- 2017
- 2016
- 2015
- 2014
- 2013
- 2012
- Final Rule on the definition of Higher-Risk Assets used for Large Bank Pricing - PDF (October 31)
- Memorandum: Deposit Insurance Fund Loss, Income and Reserve Ratio Projection Update for the Restoration Plan - PDF (October 2)
- Memorandum: Deposit Insurance Fund Loss, Income and Reserve Ratio Projection Update for the Restoration Plan - PDF (April 3)
- 2011
- Memorandum: Deposit Insurance Fund Loss, Income and Reserve Ratio Projection Update for the Restoration Plan - PDF (September 27)
- Memorandum: Deposit Insurance Fund Loss, Income and Reserve Ratio Projection Update for the Restoration Plan - PDF (April 4)
- Final Rule of Assessments, Dividends, Assessment Base, and Large Bank Pricing - PDF
- 2010
- Final Rule setting Designated Reserve Ratio at 2.00% - PDF
- Notice of Proposed Rulemaking on Assessment Base and Assessment Rates - PDF
- Notice of Proposed Rulemaking on Assessments for Large Banks - PDF
- Memorandum and resolution re: Restoration Plan - PDF
- Restoration Plan - PDF
- Notice of Proposed Rulemaking on Assessment Rates, Dividends and the Designated Reserve Ratio - PDF
- Final Rule Regarding Extension of the Transaction Account Guarantee Program (Second Half 2010) - PDF
- Memorandum: Deposit Insurance Fund Loss, Income and Reserve Ratio Projection Update for the Restoration Plan - PDF
- 2009
- Final Rule on Prepaid Assessments
- Board Memorandum: Special Assessment, Restoration Plan, and Proposal for Maintaining Fund Liquidity
- Proposal for Maintaining Fund Liquidity
- Deposit Insurance Fund Restoration Plan
- FIL-58-2009 Prepaid Assessments: Notice of Proposed Rulemaking
- Final Rule Regarding Extension of the Transaction Account Guarantee Program (First Half 2009) - PDF
- FIL-23-2009 Special Assessment: Final Rule
- FIL-12-2009 Deposit Insurance Assessments: Final Rule on Assessments; Amended FDIC Restoration Plan; Interim Rule on Emergency Special Assessment
- 2008
- 2007
- 2006