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Deposit Insurance Assessments Proposed Rules on Credits, Dividends, and Procedural and Operational Changes to Assessment Regulations

Miscellaneous
May 18, 2006

Summary: The FDIC Board of Directors is seeking comment on the attached three proposed rules governing deposit insurance assessments under the Deposit Insurance Reform Act of 2005. The proposed rules would implement a one-time assessment credit, dividends, and procedural and operational changes to the assessment regulations. The Reform Act requires the FDIC to prescribe the credit and dividend regulations by November 5, 2006. Comments on the three proposed rules are due by July 17, 2006. 

Highlights:

  • One-Time Assessment Credit: The Reform Act mandates a one-time assessment credit of approximately $4.7 billion to be allocated to each "eligible insured depository institution" or its "successor" to acknowledge contributions by institutions to build up the Bank Insurance Fund (BIF) and the Savings Association Insurance Fund (SAIF). The first proposed rule would define "successor" as the resulting institution in a merger or consolidation involving an institution that was eligible for the one-time credit. The proposed rule also seeks comment on alternative definitions of successor. The FDIC has developed a Web-based search tool, accessible through www.fdic.gov/deposit/insurance/reform.html, which allows an institution to find its preliminary estimated one-time assessment credit amount based on the notice of proposed rulemaking.
  • Dividends: The second proposed rule would establish a two-year interim rule for the payment of dividends from the Deposit Insurance Fund, the fund created on March 31, 2006, through the merger of the BIF and the SAIF.
  • Procedural and Operational Changes (Part 327 of FDIC's Rules and Regulations): The Reform Act has removed longstanding restraints on the deposit insurance assessment system and granted the FDIC discretion to revamp and improve the manner in which assessments are determined and collected from insured depository institutions. The third proposed rule would implement several improvements.

Continuation of FIL-46-2006

Distribution: 
All FDIC-Insured Institutions

Suggested Routing: 
Chief Executive Officer 
President 
Chief Financial Officer

Attachment: 
Notice of Proposed Rulemaking to Implement the One-time Assessment Credit. 
HTML| PDF 95.4kb (PDF Help) 
Notice of Proposed Rulemaking to Implement Dividend Requirements. 
HTML| PDF 71.9kb (PDF Help) 
Proposed Amendments to Part 327 to Improve the Operational Processes Governing the FDIC's Deposit Insurance Assessment System. 
HTML| PDF 12kb (PDF Help)

Note: 
FDIC financial institution letters (FILs) may be accessed from the FDIC's Web site at www.fdic.gov/news/financial-institution-letters/2006/index.html. 

To receive FILs electronically, please visit http://www.fdic.gov/about/subscriptions/fil.html. 

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

Additional Related Topics:

  • FDIC Assessments Regulations
  • 12 C.F.R. 327
FIL-46-2006
Attachment(s)
Contact(s)
Munsell St. Clair, (202) 898-8967

Last Updated: May 18, 2006