ABA Banking Journal
No Result
View All Result
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive
SUBSCRIBE
ABA Banking Journal
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive
No Result
View All Result
No Result
View All Result
ADVERTISEMENT
Home ABA Banking Journal Insurance

ABA Asks FDIC to Reconsider Parts of Assessment Proposal

September 14, 2015
Reading Time: 1 min read

While expressing support for the purpose of FDIC’s proposal to revise premium assessments for banks with under $10 billion in assets, ABA in a comment letter Friday also recommended several changes.

“ABA appreciates the intent to make the ‘small bank assessments’ system more forward looking,” the letter said, noting that much has been learned from the 500-plus bank failures since the current system was developed in 2006. “However, we question whether some of the proposed changes would reliably differentiate risk of failure among banks through future economic cycles.”

ABA expressed support for the proposal’s elimination of the CAMELS-by-capital risk categories and application of a uniform assessments formula, which would avoid a jump in assessments for banks in certain circumstances. But the formula’s proposed extreme increase in weighting for the tier 1 leverage ratio would unfairly penalize “well capitalized” banks that do not hold excess capital. ABA recommended it be aligned with the weighting in the current formula.

In addition, ABA commented, the FDIC should reconsider formula factors like the loan mix index — which penalizes certain loan concentrations associated with recent bank failures, regardless of a bank’s underwriting quality or risk hedging — and the measures of core deposits and one-year asset growth. Instead, the proposed formula should give more weight to a bank’s CAMELS rating. “No mathematical formula … can gauge the performance and condition of an individual bank, and the potential for it to fail in the future, as well as supervisors do during on-site examinations,” ABA said. For more information, contact ABA’s Rob Strand.

ADVERTISEMENT
Tags: Deposit insurance
ShareTweetPin

Related Posts

ABA urges House lawmakers to support several banking-related bills

ABA urges House lawmakers to support several banking-related bills

Newsbytes
May 20, 2025

ABA expressed its support for several bills under consideration by the House Financial Services Committee, including legislation on regulatory tailoring, reputational risk and bank merger applications.

OCC sees need for regulatory reform in bank merger process

First National Bank in South Dakota to buy Wyoming Bank & Trust

Community Banking
May 20, 2025

First National Bank in Fort Pierre, South Dakota, has agreed to buy Wyoming Bank & Trust in Cheyenne.

Senate Democrats seek proposals for regulatory changes following recent bank closures

Senate votes to advance stablecoin bill

Newsbytes
May 19, 2025

A bill to create a regulatory framework for payment stablecoins cleared a key procedural hurdle after several Democrats joined Republicans in voting to advance the legislation.

ABA, BPI seek transparency around Fed stress tests

ABA, associations urge flexibility in large bank stress test changes

Compliance and Risk
May 19, 2025

ABA joined three financial sector associations in urging the Federal Reserve for a more flexible compliance deadline for proposed changes in the stress capital buffer requirement for large banks.

Banking sector, regulators announce joint effort to address AI risks

FS-ISAC releases annual report on financial sector cyber threats

Cybersecurity
May 19, 2025

The financial sector is scrambling to keep up with the heightened risks posed by cyber threats through increasing investment in fraud prevention and strengthening third-party risk management, according to a new report by FS-ISAC.

FDIC: Number of unbanked households drops to new low

Kansas City Fed economist: Bank On may have reduced unbanked rates

Community Banking
May 19, 2025

An increase in the number of financial institutions offering Bank On-certified accounts may have contributed to the decline in unbanked households by lowering barriers to account ownership, according to new research.

NEWSBYTES

ABA urges House lawmakers to support several banking-related bills

May 20, 2025

First National Bank in South Dakota to buy Wyoming Bank & Trust

May 20, 2025

Senate votes to advance stablecoin bill

May 19, 2025

SPONSORED CONTENT

Choosing the Right Account Opening Platform: 10 Key Considerations for Long-Term Success

Choosing the Right Account Opening Platform: 10 Key Considerations for Long-Term Success

April 25, 2025
Outsourcing: Getting to Go/No-Go

Outsourcing: Getting to Go/No-Go

April 5, 2025
Six Payments Trends Driving the Future of Transactions

Six Payments Trends Driving the Future of Transactions

March 15, 2025
AI for Banks: A Starter Guide for Community and Regional Institutions

AI for Banks: A Starter Guide for Community and Regional Institutions

March 1, 2025

PODCASTS

Podcast: Accelerating banking for quick-service restaurants

May 8, 2025

How a Georgia community bank supports government-guaranteed lending nationwide

May 1, 2025

Podcast: Quantum computing’s shakeup in payments, cybersecurity

April 24, 2025
ADVERTISEMENT

American Bankers Association
1333 New Hampshire Ave NW
Washington, DC 20036
1-800-BANKERS (800-226-5377)
www.aba.com
About ABA
Privacy Policy
Contact ABA

ABA Banking Journal
About ABA Banking Journal
Media Kit
Advertising
Subscribe

© 2025 American Bankers Association. All rights reserved.

No Result
View All Result
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive

© 2025 American Bankers Association. All rights reserved.