FDIC Finalizes 2 Basis Point Increase In Deposit Insurance Assessment Rates

The Federal Deposit Insurance Corporation ("FDIC") Board had a busy Tuesday. In addition to the release of an ANPR on Resolution Requirements for large banking organizations that we also write about this week, the FDIC Board finalized its proposal to increase the assessment rates in initial base deposit insurance rates by 2 basis points.

The Final Rule is unchanged from the proposal. As we noted in June, the FDIC estimates that the increase in deposit insurance assessment rates should increase the likelihood that the Deposit Insurance Fund ("DIF") will meet its statutory minimum ratio of 1.35% prior to the statutorily mandated date of September 2028. Notwithstanding the statutory minimum of 1.35% for the DIF's designated reserve ratio ("DRR"), the FDIC has stated that its long-term goal is to maintain a 2% DRR. As of June 30, 2022, the DRR stood at 1.26%.