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3.6 Elimination of Procyclical Assessments

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3.6       Elimination of Procyclical Assessments. The FDIC may, in its sole discretion, suspend or limit the mandatory annual payment of dividends from the Deposit Insurance Fund when the reserve ratio of the Fund exceeds 1.5. percent of estimated insured deposits. Currently, the FDIC must annually declare the amount in the Fund in excess of the amount required to maintain the reserve ratio at 1.5 percent of estimated insured deposits, as dividends to be paid to insured depository institutions. Additionally, the Act repeals the annual requirement that the FDIC must pay dividends to insured depository institutions when the Fund's reserve ratio is equal or greater than 1.35 percent and not more than 1.5 percent of estimated insured deposits. The FDIC must adopt regulations, after notice and comment, establishing the method for the declaring, calculating, distributing, and paying of dividends from the Deposit Insurance Fund. [§332]