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FDIC Deposit Insurance

Banks keep America's deposits secure

ABA Position

Under Dodd-Frank Act §334, banks with less than $10 billion in assets were not held responsible to recapitalize the FDIC insurance fund from 1.15 percent of insured deposit to 1.35 percent. When the fund reached 1.35 percent in September of 2018, the FDIC calculated that $764 million of premiums paid were due back to below-$10 billion banks, and accordingly allocated assessment credits to be used against future assessments.

In August, the FDIC proposed to amend its rule that determines when assessment credits can be used. As proposed, credits will be applied against assessments as long as the fund exceeds 1.35 percent, instead of 1.38 percent as at present.

ABA welcomed the proposal but urged the FDIC to “return the credit funds as expeditiously as is feasible to those banks to which they are due.” ABA added that “the credits will serve a better purpose when disbursed to these banks where these funds can support the institutions’ lending and liquidity.”

See ABA’s response to the proposal

In August, the FDIC proposed to amend its rule that determines when assessment credits can be used. As proposed, credits will be applied against assessments as long as the fund exceeds 1.35 percent, instead of 1.38 percent as at present.

ABA welcomed the proposal but urged the FDIC to “return the credit funds as expeditiously as is feasible to those banks to which they are due.” ABA added that “the credits will serve a better purpose when disbursed to these banks where these funds can support the institutions’ lending and liquidity.”

See ABA’s response to the proposal

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