FDIC To Apply CBLR Framework To Deposit Insurance Assessment System

The FDIC adopted a final rule that will apply the community bank leverage ratio ("CBLR") framework to the deposit insurance assessment system.

According to the FDIC, the final rule will:

• amend the definition of "small institution" to include any bank that uses the CBLR framework, even if the assessment regulations would otherwise classify the bank as a "large institution";

• clarify that a bank with assets between $5 billion and $10 billion electing to use the CBLR framework cannot request treatment as a large bank for deposit insurance assessments;
• make technical amendments to the assessment regulations to ensure that the definitions of capital categories used in the deposit insurance assessment system continue to reference the prompt corrective action regulations;