Tabs

Bank/Thrift Supervision   |    Capital    |    CFPB    |    Deposit Insurance    |    Interchange    |    Mortgage Finance
Municipal Advisors   |    OCC-OTS Merger   |    Preemption    |    QM - QRM    |    Swaps   |    Volcker Rule    |    Full Topics List
 
Qualified Mortgage - Qualified Residential Mortgage
Swaps
Consumer Financial Protection Bureau - CFPB
Bank/Thrift Holding Company Supervision
Capital
Deposit Insurance
Interchange
Mortgage Finance
Municipal Advisors
OCC-OTS Merger
Preemption
Volcker Rule
Corporate Governance
Financial Stability Oversight Council (FSOC)
Appraisals
Office of Financial Research (OFR)
Systemic Risk
Supervision and Oversight
Payment, Clearing and Settlement
Prudential Supervision
Trust & Securities
Asset-Backed Securities
Resolution Authority

Thursday, January 7, 2016

ABA Urges Changes to FDIC DIF Assessment Approach

ABA urged the FDIC to consider an alternate approach in how midsize and large banks will be assessed to recapitalize the Deposit Insurance Fund. The agency’s proposal is intended to implement Section 334 of the Dodd-Frank Act, which calls for banks with over $10 billion in assets to be responsible for recapitalizing the DIF to 1.35% of insured deposits after it reaches a 1.15% reserve ratio.

For banks with over $10 billion, ABA recommended that the 4.5 basis point surcharge assessments be stretched out through the third quarter of 2020, as provided by Congress. For smaller banks — which under the proposal would receive credits for any amount above their share of the assessments needed to maintain the fund at a 1.15% reserve ratio — ABA urged the FDIC to make the assessment credits transferable, usable without limit, available sooner than proposed and not subject to FDIC assessments.

With the fund expected to be at 1.15% in the first quarter, the proposed rule could go into effect as soon as the second quarter of 2016.

Read the comment letter.

No comments:

Post a Comment

Please read our comment policy before making a comment.