Raising deposit insurance assessment rates during a time of economic stress leads to a “significant drop” in bank lending growth, which disproportionately affects smaller community banks, according to a working paper published today by the FDIC’s Center for Financial Research.
The American Bankers Association and five trade associations came out against a proposed two basis-point increase in deposit insurance assessment rates in comments submitted to the FDIC today, saying “such an aggressive assessment rate increase is unwarranted.”
In response to the Financial Accounting Standards Board’s recent elimination of accounting guidance for troubled debt restructurings for adopters of the current expected credit loss standard, the FDIC is proposing to update the scorecard it uses to calculate assessments for large and highly complex insured depository institutions to reflect the changes.
The FDIC today signaled an intent to aggressively raise deposit insurance assessment rates, proposing a two basis-point increase beginning in the first quarterly assessment period of 2023.
The FDIC today approved a final rule establishing a process by which the agency will identify and investigate any conduct involving the misuse of its name or logo.
FDIC-insured banks and savings institutions earned $63.9 billion in the fourth quarter of 2021, a 7.4% increase from the year prior, and full-year net income increased 89.7% to $279.1 billion, the FDIC reported today in its Quarterly Banking Profile.
The FDIC today approved a final rule to simplify deposit insurance calculations for revocable trusts, irrevocable trusts and mortgage servicing accounts.
The Deposit Insurance Fund remains on track to be recapitalized to its statutory level of 1.35% by the statutory deadline of Sept. 30, 2028, FDIC staff said today during an FDIC board meeting.
The FDIC board today unanimously approved a $2.26 billion agency operating budget for 2022, a 0.7% decrease from the 2021 budget.
The American Bankers Association and 51 state bankers associations today wrote to members of the FDIC board emphasizing the importance of an “independent FDIC and an orderly, transparent policymaking process.”