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Insurance Corporation

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Financial Institution Letters

Deposit Insurance Assessments
Proposed Rule on Assessments
October 20, 2008

Summary: The FDIC Board of Directors is seeking comment on the attached proposed rule, which would amend the system for risk-based assessments and change assessment rates. Comments on the proposed rule are due by November 17, 2008.


  • Risk-Based Assessments for Risk Category I: To determine initial base assessment rates, the FDIC proposes to: (1) introduce a new financial ratio into the financial ratios method applicable to most Risk Category I institutions to include brokered deposits above a threshold that are used to fund rapid asset growth; (2) for a large Risk Category I institution with long-term debt issuer ratings, combine weighted average CAMELS component ratings, the debt issuer ratings, and the financial ratios method assessment rate; and (3) use a new uniform amount and pricing multipliers for each method.
  • Adjustments to Assessment Rates: The FDIC also proposes to introduce three adjustments that could be made to an institution's initial base assessment rate: (1) a potential decrease for long-term unsecured debt, including senior and subordinated debt and, for small institutions, a portion of Tier 1 capital; (2) a potential increase for secured liabilities above a threshold amount; and (3) for non-Risk Category I institutions, a potential increase for brokered deposits above a threshold amount.
  • Assessment Rates. For the first quarter of 2009 only, the FDIC proposes raising the current rates uniformly by seven basis points. The FDIC proposes to establish new initial base assessment rates that will be subject to adjustment as described above effective April 1, 2009.
  • Rate Calculator: The FDIC has developed an assessment rate calculator to enable any institution to determine assessment rates under the proposed rule and rates. The calculator is available at:

All FDIC-Insured Institutions

Suggested Routing:
Chief Executive Officer
Chief Financial Officer

Related Topics:
FDIC Operational Regulations Governing the
Assessment Process, 12 CFR 327.1 to 327.8


Munsell W. St. Clair, Chief, Banking and
Regulatory Policy Section, Division of
Insurance and Research, (202) 898-8967;
Christopher Bellotto, Counsel, Legal Division,
(202) 898-3801; or .

Printable Format:
FIL-106-2008 - 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 703-562-2200).

Last Updated 10/20/2008

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