The Federal Deposit Insurance Act (FDI Act) requires that the FDIC Board of Directors (Board) designate a reserve ratio for the Deposit Insurance Fund (DIF or fund) and publish the designated reserve ratio, or DRR, before the beginning of each calendar year. The Board must set the DRR in accordance with its analysis of the following statutory factors:
- Risk of losses to the DIF;
- Economic conditions generally affecting insured depository institutions;
- Preventing sharp swings in assessment rates; and
- Any other factors that the Board determines to be appropriate.
Under the FDI Act, the FDIC has broad discretion to manage the DIF, including at what level to set the DIF. The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 set the required minimum reserve ratio to 1.35 percent. If the reserve ratio falls below 1.35 percent or is expected to within 6 months, the FDIC generally must adopt a restoration plan to restore the DIF reserve ratio to at least 1.35 percent within 8 years.
There is no upper limit on the reserve ratio and thus, no statutory limit on the size of the fund. The FDI Act provides for dividends from the fund when the reserve ratio exceeds 1.5 percent, but grants the Board sole discretion in determining whether to suspend or limit the declaration or payment of dividends.
The FDI Act requires that the Board consider the appropriate level for the DRR annually and, if the Board is changing the DRR, to engage in notice-and-comment rulemaking and publish the new DRR before the beginning of the calendar year. The following table shows the DRR set for 2007-2023.
| Designated Reserve Ratio | |
|---|---|
Year | Designated Reserve Ratio (DRR) |
| 2023 | |
| 2022 | |
| 2021 | |
| 2020 | |
| 2019 | |
| 2018 | |
| 2017 | |
| 2016 | |
| 2015 | |
| 2014 | |
| 2013 | |
| 2012 | |
| 2011 | |
| 2010 | |
| 2009 | |
| 2008 | |
| 2007 | |
Extraordinary growth in insured deposits during the first and second quarters of 2020 caused the reserve ratio to decline below the statutory minimum to 1.30 percent as of June 30, 2020. On September 15, 2020, the Board adopted a Restoration Plan to restore the DIF to at least 1.35 percent by September 30, 2028. On June 21, 2022, the Board adopted an Amended Restoration Plan incorporating an increase in assessment rates. The Amended Plan requires the FDIC to update its analysis and projections for the DIF balance and reserve ratio at least semiannually.
2022
2021
- Memorandum: Restoration Plan Semiannual Update - PDF (December 14)
- Memorandum: Restoration Plan Semiannual Update - PDF (June 15)
2020
- Federal Register Notice: FDIC Restoration Plan - PDF (September 21)
- Memorandum: Restoration Plan - PDF (September 15)
- Financial Institution Letter: Restoration Plan for the FDIC Deposit Insurance Fund (September 15)
As the reserve ratio dropped below 1.25 percent near the end of 2006, the FDIC began taking steps to maintain the Fund balance and liquidity. Following are the related actions taken by the FDIC Board since then. On September 30, 2018, the DIF reserve ratio reached 1.36 percent, exceeding the statutorily required minimum reserve ratio of 1.35 percent.
2018
- Memorandum: Deposit Insurance Fund Loss, Income and Reserve Ratio Projection Update for the Restoration Plan - PDF (November 30)
- Memorandum: Deposit Insurance Fund Loss, Income and Reserve Ratio Projection Update for the Restoration Plan - PDF (March 6)
2017
- Memorandum: Deposit Insurance Fund Loss, Income and Reserve Ratio Projection Update for the Restoration Plan - PDF (August 30)
- Memorandum: Deposit Insurance Fund Loss, Income and Reserve Ratio Projection Update for the Restoration Plan - PDF (March 3)
2016
- Memorandum: Deposit Insurance Fund Loss, Income and Reserve Ratio Projection Update for the Restoration Plan - PDF (August 31)
- Memorandum: Deposit Insurance Fund Loss, Income and Reserve Ratio Projection Update for the Restoration Plan - PDF (February 29)
2015
- Memorandum: Deposit Insurance Fund Loss, Income and Reserve Ratio Projection Update for the Restoration Plan - PDF (October 6)
- Memorandum: Deposit Insurance Fund Loss, Income and Reserve Ratio Projection Update for the Restoration Plan - PDF (April 7 )
2014
- Memorandum: Deposit Insurance Fund Loss, Income and Reserve Ratio Projection Update for the Restoration Plan - PDF (October 2)
- Memorandum: Deposit Insurance Fund Loss, Income and Reserve Ratio Projection Update for the Restoration Plan - PDF (March 28)
2013
- Memorandum: Deposit Insurance Fund Loss, Income and Reserve Ratio Projection Update for the Restoration Plan - PDF (September 23)
- Memorandum: Deposit Insurance Fund Loss, Income and Reserve Ratio Projection Update for the Restoration Plan - PDF> (March 28)
2012
- Final Rule on the definition of Higher-Risk Assets used for Large Bank Pricing - PDF (October 31)
- Memorandum: Deposit Insurance Fund Loss, Income and Reserve Ratio Projection Update for the Restoration Plan - PDF (October 2)
- Memorandum: Deposit Insurance Fund Loss, Income and Reserve Ratio Projection Update for the Restoration Plan - PDF (April 3)
2011
- Memorandum: Deposit Insurance Fund Loss, Income and Reserve Ratio Projection Update for the Restoration Plan - PDF (September 27)
- Memorandum: Deposit Insurance Fund Loss, Income and Reserve Ratio Projection Update for the Restoration Plan - PDF (April 4)
- Final Rule of Assessments, Dividends, Assessment Base, and Large Bank Pricing - PDF (February 11)
2010
- Final Rule setting Designated Reserve Ratio at 2.00% - PDF
- Notice of Proposed Rulemaking on Assessment Base and Assessment Rates - PDF
- Notice of Proposed Rulemaking on Assessments for Large Banks - PDF
- Memorandum and resolution re: Restoration Plan - PDF
- Restoration Plan - PDF
- Notice of Proposed Rulemaking on Assessment Rates, Dividends and the Designated Reserve Ratio - PDF
- Final Rule Regarding Extension of the Transaction Account Guarantee Program (Second Half 2010) - PDF
- Memorandum: Deposit Insurance Fund Loss, Income and Reserve Ratio Projection Update for the Restoration Plan - PDF
2009
- Final Rule on Prepaid Assessments
- Board Memorandum: Special Assessment, Restoration Plan, and Proposal for Maintaining Fund Liquidity
- Proposal for Maintaining Fund Liquidity
- Deposit Insurance Fund Restoration Plan
- FIL-58-2009 Prepaid Assessments: Notice of Proposed Rulemaking
- Final Rule Regarding Extension of the Transaction Account Guarantee Program (First Half 2009) - PDF
- FIL-23-2009 Special Assessment: Final Rule
- FIL-12-2009 Deposit Insurance Assessments: Final Rule on Assessments; Amended FDIC Restoration Plan; Interim Rule on Emergency Special Assessment
2008
- Final Rule on Assessment Rates for the First Quarter of 2009 - December 16, 2008 - PDF
- Memorandum to the Board on Restoration Plan, Notice of Proposed Rulemaking on Risk-Based Assessments, and the Designated Reserve Ratio for 2009 - October 6, 2008 - PDF
- Establishment of FDIC Restoration Plan - PDF
2007
2006