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
Chief Executive Officer
Chief Financial Officer
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,
FIL-92-2006 - PDF 27k (PDF Help)
FDIC Financial Institution Letters (FILs) may be accessed from the FDIC's Web site at www.fdic.gov/news/news/financial/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 Fairfax Drive, E-1002, Arlington, VA 22226 (1-877-275-3342 or 703-562-2200).