Community Bank Assessment Credits Coming

Nov 29, 2018

The Deposit Insurance Fund reserve ratio has surpassed 1.35 percent, triggering approximately $750 million in assessment credits for community banks, the FDIC said. With the reserve ratio at 1.38 percent, banks under $10 billion in assets will receive assessment credits for the portion of their assessments that contribute to the increase in the reserve ratio from 1.15 percent to 1.35 percent.

The FDIC said it plans to notify affected banks of their individual credit amount in January. Credits automatically will be applied each quarter that the reserve ratio is at least 1.38 percent.

The FDIC also is ending surcharges on banks with assets of $10 billion or more. The last quarterly surcharge will be reflected in these banks’ December 2018 assessment invoices.

Assessment rates will remain unchanged, but they are scheduled to decrease when the reserve ratio exceeds 2 percent.

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