The assessment base has always been more than just insured deposits. From 1935 to 2010, a bank's assessment base was about equal to its total domestic deposits. As required by the Dodd-Frank Act, however, the FDIC amended its regulations effective April 2011 to define a bank's assessment base as its average consolidated total assets minus its average tangible equity. Therefore, a bank pays assessments on its total liabilities, not just insured deposits.
The Deposit Insurance Fund (DIF) is funded mainly through quarterly assessments on insured banks. A bank's assessment is calculated by multiplying its assessment rate by its assessment base. A bank's assessment base and assessment rate are determined and paid each quarter.
A bank's assessment is calculated by multiplying its assessment rate by its assessment base. A bank's assessment base and assessment rate are determined each quarter.
Small banks (generally, those with less than $10 billion in assets) are assigned an individual rate based on a formula using financial data and CAMELS (capital adequacy, asset quality, management, earnings, liquidity, and sensitivity) ratings.
Large banks (generally, those with $10 billion or more in assets) are assigned an individual rate based on a scorecard. One version of the scorecard applies to most large institutions and another to institutions that are structurally and operationally complex or that pose unique challenges and risk in the case of failure (highly complex institutions). The scorecard combines the following measures to produce a score that is converted to an assessment rate: CAMELS component ratings, financial measures used to measure a bank's ability to withstand asset-related and funding-related stress, and a measure of loss severity that estimates the relative magnitude of potential losses to the FDIC in the event of the bank's failure.
Assessment rates for both large and small banks are subject to adjustment. Assessment rates: (1) decrease for issuance of long-term unsecured debt, including senior unsecured debt and subordinated debt debt (the Unsecured Debt Adjustment or UDA); (2) increase for holdings of long-term unsecured or subordinated debt issued by other insured banks (the Depository Institution Debt Adjustment or DIDA); and (3) for large banks that are not well-rated or not well-capitalized, increase for significant holdings of brokered deposits (the Brokered Deposit Adjustment or BDA).
Starting Third Quarter 2016 (December 2016 Invoice) and currently in effect.
|Total Base Assessment Rates for established institutions (insured 5 or more years)*|
|Small Banks**||Large & Highly Complex Institutions**|
|Initial Base Assessment Rate||3 to 30||3 to 30|
|Unsecured Debt Adjustment (added) ***||-5 to 0||-5 to 0|
|Brokered Deposit Adjustment (added)||N/A||0 to 10|
|Total Base Assessment Rate||1.5 to 30||1.5 to 40|
* Total base assessment rates do not include the depository institution debt adjustment.
** See §327.8(f) and §327.8(g) for the definition of large and highly complex institutions.
*** The unsecured debt adjustment cannot exceed the lesser of 5 basis points or 50 percent of an insured depository institution's initial base assessment rate.
|Total Base Assessment Rates for newly insured small institutions (those insured less than 5 years)*|
|Risk Category I||Risk Category II||Risk Category III||Risk Category IV|
|Initial Base Assessment Rate||7||12||19||30|
|Brokered Deposit Adjustment (added)||N/A||0 to 10||0 to 10||0 to 10|
|Total Base Assessment Rate||7||12 to 22||19 to 29||30 to 40|
|* Total base assessment rates do not include the depository institution debt adjustment.|
|Supervisory Group A||Supervisory Group B||Supervisory Group C|
|Capital Group 1 (Well Capitalized)||Risk Category I||Risk Category II||Risk Category III|
|Capital Group 2 (Adequately Capitalized)||Risk Category II||Risk Category II||Risk Category III|
|Capital Group 3 (Under Capitalized)||Risk Category III||Risk Category III||Risk Category IV|
For more information:
- Deposit Insurance Assessments - FDIC Division of Finance provides a comprehensive overview of deposit insurance assessments for bankers, including information on the quarterly invoicing process, compliance reviews of assessment reporting, and prior period rates.
- Historical Information – See FDIC assessments rules up to most recent.