Deposit-Insurance Premium Assessments
The FDIC has finalized its proposal largely unchanged to raise base Deposit Insurance Fund (DIF) assessments by two basis points (bps) to replenish the DIF by the statutory deadline to reflect deposit inflows that the FDIC no longer expects to be temporary. Even after the DIF reaches its minimum ratio, the added assessments will continue to restore the fund to what the FDIC believes to be a necessary, more ample reserve ratio. This will increase costs at insured depository institutions (IDIs), in some cases by sizeable amounts likely to alter business strategy in ways that might dampen economic growth. However, scant DIF resources under acute stress might trigger not only the need for another taxpayer infusion into the FDIC, but also demands for more stringent regulatory and resolution standards.