Comments due on FDIC proposal on assessments credits
The FDIC has announced its approval of a notice of proposed rulemaking that would amend the deposit insurance assessment regulations that govern the use of small bank assessment credits and one-time assessment credits. Small bank credits were awarded to insured depository institutions that had less than $10 billion in assets, and that contributed to the growth in the Deposit Insurance Fund reserve ratio at some point between July 1, 2016, and September 30, 2018, when the reserve ratio was between 1.15 percent and 1.35 percent. The proposal would require the FDIC to automatically apply small bank credits to quarterly assessments when the reserve ratio is at least 1.35 percent, rather than 1.38 percent, as required under current regulation. After applying credits for eight quarters, the FDIC would remit to insured institutions the nominal value of any remaining small bank credits.
Comments on the proposed rule will be accepted for 30 days after publication in the Federal Register. UPDATE: Published at 84 FR 45443 on 8/29/2019. Comments due by 9/30/2019.