- The ANPR presents two general approaches to allocating dividends -- the fund balance method and the payments method.
- The two allocation methods potentially differ in the way they balance two factors -- institutions' relative assessment bases as of the end of 1996 and assessments paid after 1996 -- as well as the way the balance changes over time. Thus, the allocation methods potentially differ in the way they treat older institutions (with relatively large assessment bases at the end of 1996) versus newer institutions (with little or no assessment bases at the end of 1996). The fund balance method implicitly balances these two factors. The payments method can be structured to balance these factors in different ways.
- The ANPR also seeks comment on the extent to which the dividend allocation system should reinforce the risk incentives of the risk-based assessment system by taking into account the portion of an institution's assessment that represents higher risk.
- Comments are due by November 19, 2007.
All FDIC-Insured Institutions
Chief Executive Officer
Chief Financial Officer
FDIC Temporary Final Rule on Assessment
Dividends, 12 CFR 327, Subpart C; FDIC One-
Time Assessment Credit Regulations,
12 CFR 327, Subpart B; FDIC Assessment
Dividend Regulations, 12 CFR 327, Subpart C;
FDIC Operational Regulations Governing the
Assessment Process, 12 CFR 327.1 to 327.8
Advance Notice of Proposed Rulemaking (PDF Help)
Munsell W. St. Clair, Senior Policy Analyst, Division
of Insurance and Research, (202) 898-8967;
Missy Craig, Senior Program Analyst, Division of
Insurance and Research, (202) 898-8724; or
Joseph A. DiNuzzo, Counsel, Legal Division,
(202) 898-7349. E-mail: firstname.lastname@example.org
FIL-85-2007 - PDF (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-