FDIC Insurance Fund Reaches Critical Milestone

According to the Quarterly Banking Profile released today, the FDIC’s deposit insurance fund has grown to 1.17 percent of insured deposits in June, up from 1.13 percent in March. With this increase, the fund surpassed a target of 1.15 percent to trigger important changes in the FDIC assessments for all banks. The changes take effect this quarter for premiums to be billed and paid in December.

Banks with under $10 billion in assets will see their overall reduction schedule decline by two basis points for banks paying the lowest premiums and up to five points for those at the top end of the assessment scale. In addition, a new formula for calculating risk-based assessment rates is now in effect.

The lower assessment schedule also applies to banks over $10 billion. In addition, “surcharge assessments” to hold these 113 banks solely responsible for bringing the fund to 1.35 percent (as required under Dodd-Frank), commence this quarter.