Comment Deadline Set for FDIC Proposal to Update Accounting Calculations for Deposit Insurance Assessments

Comments on an FDIC proposal to update the accounting standards in the risk-based deposit insurance assessment system applicable to certain large insured depository institutions are due by August 26, 2022. The notice was published in the Federal Register.

As previously covered, the proposed amendments would conform the FDIC's accounting standards to the Financial Account Standards Board's Accounting Standards Update No. 2022-02 (ASU 2022-02) ("Financial Instruments-Credit Losses"). The proposed amendments would modify (i) the underperforming assets ratio and (ii) the higher risk assets ratio by replacing restructured loans or troubled debt restructurings in the calculation of such ratios with a new term: "modifications to borrowers experiencing financial difficulty." The proposed effective date remains January 1, 2023.