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Financial Institution Letters

Deposit Insurance Assessments
Final Rule on Assessment Dividends
October 18, 2006

Summary: The FDIC Board of Directors has approved the attached final rule to implement Assessment Dividends, as required by the Federal Deposit Insurance Reform Act of 2005. The final rule takes effect on January 1, 2007.


The Reform Act generally requires that the FDIC pay dividends from the Deposit Insurance Fund (DIF) to insured institutions when the DIF reserve ratio at the end of a calendar year exceeds 1.35 percent.

The attached final rule:

  • Establishes a temporary rule for payment of dividends from the DIF. The rule expires at the end of 2008.
  • Indicates the FDIC's intention to undertake a second, more comprehensive rulemaking on dividends to explore alternative methods for distributing future dividends after the initial two-year period.

The FDIC considers it unlikely that the reserve ratio of the DIF will trigger a dividend before this temporary rule expires.

All FDIC-Insured Institutions

Suggested Routing:
Chief Executive Officer
Chief Financial Officer

Related Topics:
FDIC Assessments Regulations, 12 CFR 327, Subpart A
FDIC Dividends Regulations, 12 CFR 327, Subpart C

Final Rule - PDF 73k (PDF Help)

Munsell W. St.Clair, Senior Policy Analyst, Division of Insurance and Research, (202) 898-8967
Donna M. Saulnier, Senior Assessment Policy Specialist, Division of Finance, (703) 562-6167
Joseph A. DiNuzzo, Counsel, Legal Division, (202) 898-7349

Printable Format:
FIL-92-2006 - PDF 27k (PDF Help)

FDIC Financial Institution Letters (FILs) may be accessed from the FDIC's Web site at

To receive FILs electronically, please visit

Paper copies of FDIC financial institution letters may be obtained through the FDIC's Public Information Center, 3501 Fairfax Drive, E-1002, Arlington, VA 22226 (1-877-275-3342 or 703-562-2200).

Last Updated 10/18/2006

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