Deposit Insurance Assessments Final Rule on Assessment Dividends
FIL-92-2006 October 18, 2006
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
Chief Executive Officer
Chief Financial Officer
FDIC Assessments Regulations, 12 CFR 327, Subpart A
FDIC Dividends Regulations, 12 CFR 327, Subpart C
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,