Interim Final Rule on Special Assessment Collection

Summary:

The Federal Deposit Insurance Corporation (FDIC) Board of Directors approved an interim final rule to amend the collection of the special assessment to recover the loss to the Deposit Insurance Fund (DIF) arising from the protection of uninsured depositors under the systemic risk determination announced on March 12, 2023 following the closures of Silicon Valley Bank and Signature Bank, as required by the Federal Deposit Insurance Act (FDI Act). 

Statement of Applicability: The contents of, and material referenced in, this FIL do not apply to any banking organization (defined to include FDIC-insured financial institutions that are not subsidiaries of a holding company and FDIC-insured financial institutions that are subsidiaries of a holding company with one or more FDIC-insured financial institution subsidiaries) with less than $5 billion in total consolidated assets. 

Highlights:

Special Assessment Collection

• As of September 30, 2025, the FDIC estimates that of the total cost of the failures of Silicon Valley Bank and Signature Bank, approximately $16.7 billion was attributable to the systemic risk exception and by statute must be recovered through the special assessment.
• Through the first six quarterly collections of the special assessment, the FDIC collected $12.7 billion and anticipates collecting another $2.1 billion for the seventh quarter of the initial collection period, with an invoice payment date of December 30, 2025, for a total projected collection of $14.8 billion.
• Absent the interim final rule, the FDIC would invoice and collect the eighth quarterly special assessment, with an invoice payment date of March 30, 2026, at a quarterly rate of 3.36 basis points for a projected amount of $2.1 billion, bringing the projected cumulative collection through the eighth collection quarter to $16.9 billion, or approximately $250 million more than estimated losses as of September 30, 2025. 

Reduction in Rate for Eighth Special Assessment Collection

• The interim final rule reduces the special assessment rate for the eighth collection quarter from 3.36 basis points to 2.97 basis points. This is intended to allow the FDIC to recover approximately the full amount of estimated losses as of September 30, 2025, while minimizing any amounts collected in excess of the estimated losses.

Potential Offset to Regular Quarterly Deposit Insurance Assessments

• The interim final rule also requires the FDIC to provide an offset to regular quarterly deposit insurance assessments for banks subject to the special assessment if, following the final resolution of litigation between the FDIC and SVB Financial Trust, the total amount collected through the special assessment exceeds the loss estimates at that time.
• Any offset provided would be an amount proportional to the amount that each bank paid towards the special assessment.

Final Offset to Regular Quarterly Deposit Insurance Assessments or One-Time Final Shortfall Special Assessment 

• Under the interim final rule, upon termination of the receiverships, the FDIC will either: (1) provide an offset to regular quarterly deposit insurance assessments for IDIs subject to the special assessment if the amount collected exceeds losses; or (2) collect from IDIs subject to the special assessment a one-time final shortfall special assessment, consistent with the 2023 final rule implementing the special assessment, if losses at the termination of the receiverships exceed the amount collected.
• In aggregate, this will ensure that the FDIC ultimately collects the correct amount, equal to losses attributable to the systemic risk exception.