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    Issue of Interest: Deposit Insurance

    ABA Media Contact: John Hall
    (202) 663-5473
    Email: jhall@aba.com                                                                                 Last updated: May 24, 2012

    The banking industry is committed to supporting the deposit insurance fund, and we stand ready to ensure the health of the fund and the strength of the FDIC.  The fund was built up entirely by bank premiums and the industry knows that keeping it strong is essential to our nation's banking system.  Customers are protected by FDIC insurance.  No one has ever lost a penny of an insured deposit.

    FDIC Emergency Special Assessment

    On Feb. 27, FDIC proposed an emergency special assessment of 20 basis points on all banks to restore the Deposit Insurance Fund to an acceptable level.  ABA, state bankers associations and member bankers objected vociferously to the special assessment as unworkable and causing a dramatic reduction in banks' ability to lend just when bank loans are needed the most.

    FDIC Chairman Sheila Bair announced March 2 that the agency would cut its special assessment if Congress passes legislation increasing the agency's line of credit with Treasury.  On May 20, President Obama signed the Helping Families Save Their Homes Act (S.896), which increases FDIC's borrowing authority to $100 billion and extends the time for restoration of the deposit insurance fund from five to eight years.

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