FDIC Proposes Special Deposit Insurance Assessment After Systemic Risk Exception

The Federal Deposit Insurance Corporation ("FDIC") Board voted (3-2) to propose a special assessment to recoup the expected $15.8 billion cost to the Deposit Insurance Fund "(DIF") in the wake of invocation of the special risk exception ("SRE") to cover all deposits at Silicon Valley Bank and Signature Bank in March. The Notice of Proposed Rulemaking ("NPR") will be subject to comment for 60 days from publication in the Federal Register.

The NPR would assess a 12.5 basis point assessment on an insured depository institution's estimated uninsured deposits reported at year-end 2022. This assessment base would be adjusted to exclude the first $5 billion in estimated uninsured deposits reported at year-end 2022. The assessment would be paid over 8 quarters, beginning in 2024. Using this estimated uninsured deposits as the assessment base for the assessment, FDIC Chair Martin Gruenberg stated "[t]he proposal applies the special assessment to the types of banking