The Dodd-Frank Act permits the FDIC to alter the structure of the Deposit Insurance Fund (DIF) in numerous ways, including the changes finalized in this rulemaking. These are intended to ensure that the DIF in the future has the resources to withstand crises better than it did in the most recent one, when a variety of special assessments and other measures were needed to sustain the Fund. The final rule sets the minimum designated reserve ratio (DRR) for the DIF at two percent, up from the maximum 1.5 percent. As also authorized by the new law, the FDIC will extend the restoration period – that in which the DIF would rebuild to the 1.35 percent minimum set in law – to 2020 (up from the 2016 date and 1.15 percent goal originally set by the FDIC). The rule also begins to implement provisions designed to ensure that the cost of new premiums falls more heavily on large banks.
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