On June 16, 2015, the FDIC proposed an amendment to the methods used by the FDIC in assessing small banks for deposit insurance. Under the proposal, only banks with less than $10 billion in assets that have been insured by the FDIC for at least five years would be affected. Specifically, the FDIC will (i) revise the financial ratios method to be based on a statistical model estimating the probability of failure over three years; (ii) update the financial measures used in the financial ratios method to be consistent with the statistical model; and (iii) eliminate risk categories for established small banks and use the financial ratios method to determine assessment rates for all such banks. As the proposal seeks to be revenue neutral, the aggregate assessment revenue collected from small banks affected by the revisions is expected to remain approximately the same as it would have been otherwise. To assist banks in understanding the potential effect of the proposed rule and in estimating assessment rates under the proposal, the FDIC has published an online assessment calculator. Comments on the proposal are due within 60 days from publication of the proposed rule in the Federal Register.
The text of the notice of proposed rulemaking is available at: https://www.fdic.gov/news/board/2015/2015-06_16_notice_dis_a_fr.pdf and the proposed assessment calculator is available at: https://www.fdic.gov/deposit/insurance/calculator.html.
The text of the statement by FDIC Chairman Martin J. Gruenberg regarding the proposed rule is available at: https://www.fdic.gov/news/news/speeches/spjune1615.html.
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