FDIC Hikes Premiums, Presses Resolvability

The FDIC board today voted 3-0 to increase DIF assessment rates by 2bps, finalizing its proposal (see FSM Report DEPOSITINSURANCE114) and rejecting industry arguments on grounds that a small DIF premium increase now would make a more damaging procyclical assessment increase under adverse economic conditions less likely. Unsurprisingly, the FDIC also joined the Fed in approving the ANPR that bears its name, with Acting Comptroller Hsu praising the ANPR’s balance between protecting financial stability and competition among the largest banks. CFPB Director Chopra used his remarks to advance his campaign against big banks and mergers, calling for an overall review of FDIC premiums to charge the largest banks more and an end to “lax” merger approvals. This report summarizes today’s meeting; in-depth reports on the final rule and ANPR will follow.