FOR IMMEDIATE RELEASE
ICBA Statement on FDIC Three-Year Prepaid Assessment
Washington, D.C. (November 12, 2009)—R. Michael Menzies, chairman of the Independent Community Bankers of America (ICBA) and president and CEO of Easton Bank and Trust Co., Easton, Md., today released this statement following the FDIC’s announcement that it will require a three-year prepaid assessment for FDIC-insured institutions in order to help recapitalize the Deposit Insurance Fund (DIF).
“These unconventional economic times have shown us just how valuable the FDIC’s Deposit Insurance Fund is to America’s community bank customers, who know that their deposits are safe because of the FDIC. Under the FDIC’s action today, the banking industry remains responsible for the DIF’s financial security. While the three-year prepaid assessment for some banks may be longer than preferred, ICBA is pleased that the prepayment option was chosen rather than levying one or more additional special assessments—something that would have impeded lending in cities and towns during this critical time.
“ICBA is disappointed that the FDIC did not broaden the assessment base and require large, too-big-to-fail institutions whose risky lending practices led us into the financial crisis to pay their fair share for the systemically dangerous risks they pose. ICBA will continue to advocate for deposit-insurance fairness.”
For more information, visit www.icba.org.