FOR IMMEDIATE RELEASE
ICBA-Advocated FDIC Assessment Rule Goes into Effect Today
Assessment Base Change Will Benefit Main Street Communities
Washington, D.C. (April 1, 2011)-Sal Marranca, chairman of the Independent Community Bankers of America (ICBA) and president and CEO of Cattaraugus County Bank, Little Valley, N.Y., issued the following statement in recognition of the ICBA-advocated Federal Deposit Insurance Corporation (FDIC) rule taking effect today changing the deposit-insurance assessment base. The assessment base change will help Main Street community banks continue to reinvest in their local communities, making them a better place to live and work for millions of Americans.
"ICBA worked tirelessly during the financial regulatory reform debate to ensure that Main Street's voice was heard loud and clear on Capitol Hill. One of the key results of this fervid effort is the ICBA-advocated FDIC assessment base change that goes into effect today, which establishes parity for Main Street community banks within the deposit-insurance system and sets a distinct precedent for distinguishing Main Street from Wall Street. Under the new assessment system, community banks will save roughly $4.5 billion over the next three years, allowing them to do what they do best-reinvest in their communities by putting the money to work where it belongs-in the community."
Under the old system, banks with less than $10 billion in assets paid approximately 30 percent of total FDIC premiums, even though they only held 20 percent of total bank assets. Updating the system will lower assessments for 98 percent of these community bank institutions.
To learn more about this ICBA victory or to speak with an ICBA staff expert, please contact Aleis Stokes at 202-821-4457. For more information, visit www.icba.org.