FDIC Chairman Jelena McWilliams today signaled that an increase in the deposit insurance assessment rate schedule will likely not be necessary to restore the Deposit Insurance Fund to its statutorily required minimum reserve ratio of 1.35%.
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The FDIC should clearly set out the circumstances under which it would be required to disapprove a deposit insurance application or other industrial loan bank or industrial loan company transaction, ABA recommended in a comment letter to the agency today.
The American Bankers Association joined the Bank Policy Institute and the Consumer Bankers Association today in expressing strong opposition to an application for deposit insurance submitted by Rakuten—a major Japanese e-commerce company—for its U.S. bank subsidiary, Rakuten Bank America.
Noting that many banks grew loans substantially in response to credit needs during the coronavirus pandemic, the OCC and FDIC today issued rules to ensure that banks do not pay increased assessments as a result of their increased lending amid the pandemic.
FDIC-insured banks and savings institutions earned $18.5 billion in the first quarter of 2020, a 69.6% decline from a year prior, the FDIC reported today.
Trade Groups Call for Changes to FDIC Proposal to Enable Bank Participation in PPP, Money Market Facilities
A recent proposal by the FDIC to provide certainty to banks participating in the Paycheck Protection program and its associated lending facility falls short of completely offsetting the effect of such participation for any institution, ABA and the Bank Policy Institute said in a comment letter yesterday.
To help provide certainty to banks participating in the Paycheck Protection Program and its associated lending facility, as well as the Money Market Mutual Fund Liquidity Facility, the FDIC proposed a rule today to ensure that institutions would not be subject to increased deposit insurance assessments as a result of their participation.
Since 2007, banks have more than doubled the balance of the FDIC insurance fund that protects deposits to a record $110.3 billion.
The FDIC today issued two sets of frequently asked questions addressing banker and consumer concerns related to the coronavirus pandemic.