Following a board meeting earlier today, the FDIC issued revisions to a proposed rule for assessing deposit insurance premiums on banks with under $10 billion in assets.
ABA yesterday urged the FDIC to consider an alternate approach in how midsize and large banks will be assessed to recapitalize the Deposit Insurance Fund.
The FDIC today proposed a change in deposit insurance assessments that implements a Dodd-Frank Act provision requiring banks with over $10 billion in assets to be responsible for recapitalizing the FDIC insurance fund to 1.35 percent of insured deposits after it reaches a 1.15 percent reserve ratio.
While expressing support for the purpose of FDIC’s proposal to revise premium assessments for banks with under $10 billion in assets, ABA in a comment letter Friday also recommended several changes.
The new recordkeeping standards contemplated by the FDIC for banks with more than 2 million deposit accounts — intended to help the agency determine promptly whether deposits are insured or not after a bank fails — would require major upgrades to bank IT systems, ABA said in a comment letter yesterday.
The FDIC today proposed a rule change in how smaller banks are assessed for deposit insurance, basing assessments on recent experience with bank failures.
To help the FDIC determine promptly whether deposits are insured or not after a bank fails, the FDIC today requested comment on a proposed set of new recordkeeping standards for large banks — those with more than 2 million deposit accounts. The proposal would apply to 37 of the country’s largest banks, the agency estimated.
Balances held in Google Wallet — the mobile payment service offered by the California tech giant — will now be protected by federal deposit insurance, according to press reports this week.