Community Bank Assessment Credits Take Effect

Sep 05, 2019
The FDIC Deposit Insurance Fund reserve ratio surpassed 1.38 percent, triggering approximately $764 million in ICBA-advocated assessment credits for community banks with less than $10 billion in assets. The FDIC will start applying the credits this month to offset the 2019 second-quarter bank assessments.

As advocated by ICBA, a provision of the Dodd-Frank Act of 2010 requires larger banks to offset the cost of increasing the DIF reserve ratio from 1.15 percent to 1.35 percent on banks under $10 billion. These assessment credits will be automatically applied each quarter that the reserve ratio is at least 1.35 percent.

"At the time of the original debate, the Deposit Insurance Fund was in negative territory amid the fallout of the Wall Street financial crisis," ICBA President and CEO Rebeca Romero Rainey said. "Looking at the big picture, ICBA fought hard to ensure that most community banks wouldn’t be stuck footing the cost of a crisis they didn’t cause."

Read ICBA Release