The Deposit Insurance Fund balance was $121.8 billion at the end of 2023, up $4.8 billion since June 30 of that year, the FDIC said today in the first of its semiannual updates on the DIF restoration plan. The DIF reserve ratio increased from 1.11% to 1.15%. The agency projects that the reserve ratio remains on track to reach the statutory minimum of 1.35% in 2026.
The FDIC established the restoration plan in 2020 to return the DIF reserve ratio to its statutory minimum by 2028. The recent increase in the DIF balance does not include the cost of protecting uninsured deposits as a result of the FDIC’s systemic risk determination announced following the failures of Silicon Valley Bank and Signature Bank, as the agency is required by statute to recover those losses through one or more special assessments, according to agency staff. The FDIC announced last year that the assessment would be collected at an annual rate of approximately 13.4 basis points—3.36 basis points quarterly—for an anticipated eight quarterly assessment periods. No bank with total assets below $5 billion will pay the assessment.
