The Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank) increased the minimum reserve ratio for the Deposit Insurance Fund (DIF) from 1.15 percent to 1.35 percent.
Extraordinary growth in insured deposits during the first and second quarters of 2020 caused the DIF reserve ratio to decline below the statutory minimum of 1.35 percent. As of June 30, 2020, the reserve ratio had fallen below the statutory minimum and stood at 1.30 percent. The Federal Deposit Insurance Act (FDI Act) requires that the FDIC’s Board of Directors (Board) adopt a restoration plan when the DIF reserve ratio falls below 1.35 or is expected to within 6 months. Under the FDI Act, the restoration plan must restore the reserve ratio to at least 1.35 percent within 8 years of establishing the Plan, absent extraordinary circumstances.
In September 2020, the FDIC Board of Directors adopted a Restoration Plan to restore the reserve ratio to at least 1.35 percent within eight years, absent extraordinary circumstances, as required by the FDI Act. The Restoration Plan maintained the assessment rate schedules in place at the time and required the FDIC to update its analysis and projections for the DIF balance and reserve ratio at least semiannually.
In June 2022, the FDIC projected that the reserve ratio was at risk of not reaching the statutory minimum of 1.35 percent by September 30, 2028, the statutory deadline to restore the reserve ratio. Based on this update, the FDIC Board approved an Amended Restoration Plan.
Under the Amended Restoration Plan:
- The FDIC will increase initial base deposit insurance assessment rates uniformly by 2 basis points for all insured depository institutions (IDIs).
- The FDIC will propose to increase initial base deposit insurance assessment rates uniformly by 2 basis points, effective the first quarterly assessment period of 2023, published in the Federal Register as soon as possible.
- The FDIC projects that the rates proposed in the notice of proposed rulemaking would increase the likelihood that the reserve ratio would be restored to 1.35 percent by September 30, 2028.
- The FDIC will continue to monitor deposit balance trends, potential losses, and other factors that affect the reserve ratio.
- At least semiannually, the FDIC will update its analysis and projections for the fund balance and reserve ratio and, if necessary, recommend any modifications to the Amended Restoration Plan.
The Amended Restoration Plan improves the likelihood that the reserve ratio will reach the statutory minimum of 1.35 percent before the deadline of September 30, 2028.
Rulemakings related to assessments banks pay to support the Deposit Insurance Fund. Topics include assessment rates, large bank pricing system, small bank pricing system, and the assessment base.
Rulemakings related to assessments banks pay to support the Deposit Insurance Fund. Topics include assessment rates, large bank pricing system, small bank pricing system, and the assessment base.
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2022
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2021
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2020
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2019
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2018
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2017
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2016
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2015
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2014
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2013
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2012
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2011
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2010
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2009
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Rulemakings related to assessments banks pay to support the Deposit Insurance Fund. Topics include assessment rates, large bank pricing system, small bank pricing system, and the assessment base.