Prior to 2007, the FDIC Board of Directors reviewed premium rates
semiannually. As of January 1, 1993, when the risk based assessment
system was introduced, each bank and thrift paid an annual assessment
rate of
between 23 and 31 cents per $100 of assessable deposits. After
the BIF reached the Designated Reserve Ratio (DRR) of 1.25 percent
at the end
of May 1995, the Board approved a reduction in assessment rates
for BIF members to a range of between 4 and 31 cents per $100 in
assessable deposits.
In November 1995, the Board approved a new assessment rate structure
for the BIF, with a range of between 0 and 27 cents per $100 in
assessable deposits, effective January 1, 1996.
The Deposit Insurance
Funds Act of 1996 provided for the capitalization of the SAIF
at the target DRR of 1.25 percent by means of a one-time
special assessment on SAIF-member institutions. In December 1996,
the Board lowered
SAIF assessment rates to a range of between 0 and 27 cents per
$100 in assessable deposits, which is identical to the rate schedule
previously
approved for BIF members. The new rates were effective October
1, 1996, for
previously thrift-chartered SAIF members that became bank-chartered
(known as “Sasser institutions”) and bank-chartered BIF members
that held SAIF deposits (known as “BIF Oakar institutions”),
and effective on January 1, 1997, for all other SAIF-insured institutions.
As a result
of the
merger of the BIF and SAIF to form the DIF effective March 31,
2006, all insured
institutions are subject to the same assessment rate schedule.
The
FDIC merged the Bank Insurance Fund (BIF) and the Savings Association
Insurance Fund (SAIF) to form the Deposit Insurance Fund (DIF)
on March 31, 2006 in accordance with the Federal Deposit Insurance
Reform Act of
2005. As a result of the merger of the BIF and SAIF, all insured
institutions are subject to the same assessment rate schedule.
The
amount each institution
is assessed is based upon statutory factors that include the
balance of insured deposits as well as the degree of risk the institution
poses to
the insurance fund.
Insurance
Fund Ratios - The Designated
Reserve Ratio (DRR) is the level that the FDIC Board would like the Deposit Insurance
Fund (DIF) to achieve as a percentage of estimated insured deposits.
The Deposit Insurance Fund (DIF) Reserve Ratio is the current (or
projected or historical) fund balance as a percentage of current
(or projected or historical) estimated insured deposits. Previous
legislation permitted the FDIC Board to set the DRR between 1.15
percent and 1.50 percent. Financial Regulatory Reform of 2010 eliminated
the maximum limitation of the reserve ratio and set the minimum
to not less than 1.35 percent of estimated insured deposits or
the comparable percentage of the assessment base. Financial Regulatory
Reform also requires the FDIC to take the steps necessary to attain
1.35 percent by September 30, 2020, subject to an offsetting requirement
for certain institutions. For more information on Financial Regulatory
Reform, click on the link in the left-hand column and also see FIL-8-2011 below.
Memoranda
on Assessment Rate Cases and Outlook for the DIF
Before 2007, assessment rate cases were semi-annual reports
to the FDIC Board of Directors recommending the deposit insurance
assessment rates
for the
DIF (or, prior to the fund merger, the BIF and the SAIF). Rates are no
longer set semiannually in accordance with the risk-based assessments
rule adopted in November 2006.
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2011
- FIL-8-2011 Assessments Final Rule which redefines the deposit insurance assessment base as average consolidated total assets minus average tangible equity; makes changes to assessment rates; implements DIF dividend provisions; and revises the risk-based assessment system for all large insured depository institutions.
2010
2009
2008
2007
Prior Assessment
Periods
Financial
Institution Letters (FILs)
A directory of Financial Institution Letters (FILs) pertaining to risk-related
premiums.
ASSESSMENT HOTLINE: 1-800-759-6596
or email us at
assessments@fdic.gov
