FDIC Issues Notice of Proposed Rulemaking Regarding Revised Risk-Based Deposit Insurance Assessment System
The Federal Deposit Insurance Corporation ("FDIC") published a notice of proposed rulemaking related to the computation of deposit insurance assessments levied on insured depository institutions.
The proposed rule would update the FDIC's assessment methodology to conform it to the capital ratios and ratio thresholds used for "prompt corrective action" purposes, maintaining consistency between the two measures and reducing compliance costs. The proposed rule would also revise the assessment formula for custodial banks to reflect the risk-weighting of certain low-risk, liquid assets in accordance with Basel III. Finally, the proposed rule would require "highly complex institutions" to measure counterparty exposure using standardized Basel III measures, rather than using an approach based on internal models.
The FDIC proposed two effective dates: January 1, 2015 for the revised capital ratios and ratio thresholds, and January 1, 2018 for the adjustments applicable to custodial banks and highly complex institutions.