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
Consumer Financial Protection Bureau - CFPB
Bank/Thrift Holding Company Supervision
Deposit Insurance
Mortgage Finance
Municipal Advisors
OCC-OTS Merger
Volcker Rule
Corporate Governance
Financial Stability Oversight Council (FSOC)
Office of Financial Research (OFR)
Systemic Risk
Supervision and Oversight
Payment, Clearing and Settlement
Prudential Supervision
Trust & Securities
Asset-Backed Securities
Resolution Authority

Wednesday, July 13, 2016

FDIC Insurance Fund Likely Reached 1.15 Percent in June

ABA staff experts estimate that the FDIC’s insurance fund likely reached 1.15% of insured deposits by the end of June. While the agency will not know for sure until it receives all data from second-quarter Call Reports in mid-August, reaching the 1.15% level would trigger changes to the FDIC’s deposit insurance assessments as required by Dodd-Frank beginning this quarter.

Once the 1.15% threshold is reached, the assessment schedule for banks with less than $10 billion in assets will decline by at least 2 basis points, and up to 5 basis points for banks with high risk ratings. Banks that experience growth in excess of 10% over a one-year period or are heavily funded by brokered deposits will see increased assessments. Banks with loan portfolios concentrated in construction and development or, to a lesser extent, commercial and industrial or consumer loans will also see increases, while banks with concentrations in agricultural finance will pay less. Additionally, the weighting of tier 1 capital in the assessment rate formula will significantly increase.

For the 107 banks with more than $10 billion in assets, crossing the 1.15% threshold will trigger “surcharge assessments” of 4.5 basis points. The surcharge assessments are expected to remain in place for 8 quarters or until the fund reaches at least 1.35%.

Read more.

No comments:

Post a Comment

Please read our comment policy before making a comment.