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Financial Institution Letters


Insurance Assessments

FIL-4-95
January 5, 1995

 

TO: CHIEF EXECUTIVE OFFICER
SUBJECT: New, Automated System of Quarterly Assessment Collections

On December 20, 1994, the FDIC Board of Directors approved changes in the FDIC's rules and regulations to make the process of calculating and collecting deposit insurance premiums more efficient and less burdensome. A copy of the final rule is attached. Under the new rule that is scheduled to take effect April 1, 1995, for the semiannual assessment period beginning July 1, 1995,

  1. The assessment amount will be calculated by the FDIC rather than by each institution. This will improve the accuracy of the computations and relieve institutions of the burden of performing the calculations.

  2. Assessments will be collected via direct debits initiated by the FDIC through automated clearing house processes. This will eliminate the use of paper checks by the institutions and the FDIC.

  3. Semiannual assessments will be paid in quarterly installments based on an invoice prepared by the FDIC. The agency will provide to each insured institution two quarterly invoices for each semiannual period, showing the insurance calculation based on the institution's quarterly reports of condition (Call Reports or Thrift Financial Reports).

  4. Requirements have been clarified for insurance payments due for deposits assumed from institutions terminating their insured status. The final rule addresses only transactions occurring during the last half of a semiannual assessment period (April through June or October through December) and requires the surviving institution's deposit base to be adjusted to account for the increased insurance risk of the acquired deposits.

This final rule is substantially the same as a proposal issued for public comment earlier in 1994. If you have questions regarding the new collection system, contact Connie Brindle, Chief of the Assessment Operations Section in the Division of Finance (703-516-5553), or Martha Coulter, a Counsel in the Legal Division (202-898-7348). If you have questions about the assessment obligations of acquiring institutions, contact William Farrell, Chief of the Assessment Management Section in the Division of Finance (703-516-5546), or Jules Bernard, a Counsel in the Legal Division (202-898-3731). The FDIC will be sending more details on the implementation of this new collection system in the near future.

Steven A. Seelig
Chief Financial Officer

Attachment: Federal Register

Distribution: All Insured Banks and Savings Institutions

Last Updated 07/16/1999 communications@fdic.gov