The Deposit Insurance Fund balance was $129.2 billion at the end of the second quarter of 2024, up $7.5 billion since the end of last year, the FDIC said today in the second of its semiannual updates on the DIF restoration plan. The DIF reserve ratio increased from 1.15% to 1.21%. The agency projects that the reserve ratio remains on track to reach the statutory minimum of 1.35% by 2026.
The FDIC established the restoration plan in 2020 to return the DIF reserve ratio to its statutory minimum by 2028. The balance at the end of Q2 exceeded its previous peak of $128.2 billion in Q4 2022, just before the failure of Silicon Valley Bank and two other regional banks in 2023, according to the agency. The increase in the DIF balance was primarily driven by assessments earned. Growth in the DIF balance and slower-than-average insured deposit growth in the first half of 2024 resulted in an increase in the reserve ratio of six basis points to 1.21%.
