The FDIC Board of Directors adopted the final rule, which redefines the deposit insurance assessment base as required by the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank), makes changes to assessment rates, implements Dodd-Frank’s Deposit Insurance Fund (DIF) dividend provisions and revises the risk-based assessment system for all large insured depository institutions (IDIs), generally, those institutions with at least $10 billion in total assets. Nearly all of the 7,600-plus institutions with assets less than $10 billion will pay smaller assessments as a result of this final rule.
The final rule redefines the deposit insurance assessment base as average consolidated total assets minus average tangible equity. It makes changes to the unsecured debt and brokered deposit adjustments to assessment rates. It also eliminates the secured liability adjustment and adopts a new assessment rate schedule effective April 1, 2011, and, in lieu of dividends, other rate schedules when the reserve ratio reaches certain levels.
For all large IDIs, the final rule eliminates risk categories and the use of long-term debt issuer ratings when calculating the initial base assessment rates for large IDIs, and combines CAMELS ratings and financial measures into two scorecards—one for most large IDIs and another for the remaining highly complex IDIs—to calculate assessment rates.
Assessment rate calculators are available to enable IDIs to calculate assessment rates under the final rule. The calculators are available at:
http://www.fdic.gov/deposit/insurance/future_calc.html. Click here to view the FDIC financial institution letters (FILs).