- The NPR proposes a variation of the "payments" method for allocating future dividends to FDIC-insured institutions. The NPR would divide the total dividend in any year into two parts. One part would be allocated based on the ratio of each institution's (including any predecessors') 1996 assessment base compared to the total of all existing eligible institutions' 1996 assessment bases. The other part of the total dividend would be allocated based on each institution's (including any predecessors') ratio of cumulative eligible premiums over the previous five years to the total of cumulative eligible premiums paid by all existing institutions (or their predecessors) over the previous five years.
- The part of any potential dividend that would be allocated based upon the 1996 assessment base shares would decline steadily from 100 percent to zero over 15 years. The part of any potential dividend that would be allocated based on eligible premium shares would increase steadily over the same 15-year period from zero to 100 percent. After the 15-year period, any dividend would be allocated solely based on eligible premium shares.
- An eligible premium would be a premium charged up to the maximum rate for a Risk Category I institution, including such premiums paid using one-time assessment credits.
- The NPR also seeks comments on the non-allocation provisions of the rulemaking. Only minor changes are proposed to the non-allocation provisions of the temporary final rule.
- Comments are due by May 23, 2008.
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
12 CFR 327, Subpart C;
FDIC Operational Regulations Governing the
12 CFR 327.1 to 327.8
Notice of Proposed Rulemaking (PDF Help)
Munsell W. St. Clair, Chief, Banking and
Regulatory Policy Section, 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:
FIL-24-2008 - 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-