Washington – The Federal Deposit Insurance Corporation (FDIC) Board of Directors today took a bold step to shore up the Deposit Insurance Fund (DIF) with an amended Restoration Plan and a proposed rule to increase deposit insurance assessment rates.
The FDIC aims to raise the DIF reserve ratio from its current 1.23 percent to the statutory minimum of 1.35 percent by September 2028. To achieve this, the Board proposes raising assessment rates by 2 basis points for all insured depository institutions, starting with the first assessment period of 2023.
“Better to take prudent but modest action now than delay and face larger increases later,” said Acting Chairman Martin Gruenberg.
The move follows a significant rise in insured deposits during 2020, pushing the reserve ratio below its statutory minimum. The Amended Restoration Plan reflects this need for additional funding and includes projections for semiannual updates to ensure progress towards the target ratio.
Public comment on the proposed rule is open until August 20, 2022, allowing stakeholders to weigh in on the potential impact of these changes.
The FDIC’s actions underscore its commitment to maintaining a robust DIF and ensuring stability in the banking sector.
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