FDIC Proposes Rule to Modify Deposit Insurance Assessment Process for Small Banks
The Board of Directors of the Federal Deposit Insurance Corporation ("FDIC") proposed a rule to modify the method by which small banks are assessed for purposes of contributing to the deposit insurance fund.
The proposed rule would make assessment rates for small banks more forward looking in capturing risk, and would be revenue neutral. The rule would affect banks with less than $10 billion in assets that have been insured by the FDIC for a minimum of five years by reallocating premium costs amongst such banks based on their risk profiles. The FDIC published an online assessment calculator that such institutions may use to estimate their assessment rates under the proposal.
The proposed rule will provide a 60 day comment period from the date of publication in the Federal Register.