Skip to main content
U.S. flag
An official website of the United States government
Dot gov
The .gov means it’s official. 
Federal government websites often end in .gov or .mil. Before sharing sensitive information, make sure you’re on a federal government site.
Https
The site is secure. 
The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely.
Financial Institution Letter

Deposit Insurance Assessments Proposed Rule on Assessments

Summary: The FDIC Board of Directors is seeking comment on the attached proposed rule, which would amend the system for risk-based assessments and change assessment rates. Comments on the proposed rule are due by November 17, 2008.

Highlights:

  • Risk-Based Assessments for Risk Category I : To determine initial base assessment rates, the FDIC proposes to: (1) introduce a new financial ratio into the financial ratios method applicable to most Risk Category I institutions to include brokered deposits above a threshold that are used to fund rapid asset growth; (2) for a large Risk Category I institution with long-term debt issuer ratings, combine weighted average CAMELS component ratings, the debt issuer ratings, and the financial ratios method assessment rate; and (3) use a new uniform amount and pricing multipliers for each method.
  • Adjustments to Assessment Rates : The FDIC also proposes to introduce three adjustments that could be made to an institution's initial base assessment rate: (1) a potential decrease for long-term unsecured debt, including senior and subordinated debt and, for small institutions, a portion of Tier 1 capital; (2) a potential increase for secured liabilities above a threshold amount; and (3) for non-Risk Category I institutions, a potential increase for brokered deposits above a threshold amount.
  • Assessment Rates . For the first quarter of 2009 only, the FDIC proposes raising the current rates uniformly by seven basis points. The FDIC proposes to establish new initial base assessment rates that will be subject to adjustment as described above effective April 1, 2009.
  • Rate Calculator : The FDIC has developed an assessment rate calculator to enable any institution to determine assessment rates under the proposed rule and rates. The calculator is available at: http://www.fdic.gov/deposit/insurance/initiative/index.html .

Distribution:
All FDIC-Insured Institutions

Suggested Routing:
Chief Executive Officer
President
Chief Financial Officer

Note:
FDIC financial institution letters (FILs) may be accessed from the FDIC's Web site at www.fdic.gov/news/financial-institution-letters/2008/index.html .

To receive FILs electronically, please visit http://www.fdic.gov/about/subscriptions/fil.html

Paper copies of FDIC financial institution letters may be obtained through the FDIC's Public Information Center, 3501 Fairfax Drive, E-1002, Arlington, VA 22226 (1-877-275-3342 or 703-562-2200).




Additional Related Topics:

  • FDIC Operational Regulations Governing the
  • Assessment Process, 12 CFR 327.1 to 327.8
FIL-106-2008
Attachment(s)

Last Updated: October 20, 2008