The FDIC’s board of directors recently adopted a proposal to increase the Deposit Insurance Fund (DIF) from 1.15% to the statutorily required minimum of 1.35%. This increase was expected as Dodd-Frank requires that the ratio reach 1.35% by September of 2020. Under the proposed rule, banks with $10B in assets will be responsible for the increase through a surcharge of 4.5 cents per $100 of their assessment base, after certain adjustments. As of June 30th, the DIF had recovered to $67.6B and the ratio was 1.06%. Once the DIF ratio recovers to 1.15%, regular assessment for all banks should decline under a different rule adopted in 2011.
Publication in the Federal Register is expected shortly and comments will be due 60 days after publication.