ICBA urging comments on deposit insurance assessments

ICBA is calling on community bankers to submit personalized comments to the FDIC opposing its proposal to raise deposit insurance assessment rates by 2 basis points on all insured institutions.

Grassroots Resources: To help community bankers submit unique comments by the deadline—which is this Friday, Aug. 19—ICBA offers an online guide on developing, formatting, and submitting comments.

Background: Due to economic stimulus measures enacted in response to the pandemic, deposit growth is outpacing Deposit Insurance Fund growth, causing the DIF reserve ratio to decline below the required 1.35% minimum.

Proposal: While the FDIC’s proposed 2-point increase is designed to increase the likelihood that the DIF reserve ratio reaches the statutory minimum of 1.35% by the September 2028 deadline set forth under the current restoration plan, the rate increase would begin in 2023 and remain in effect until the reserve ratio reaches 2%.

Key Concerns: Using ICBA’s comment guide, community bankers can discuss the negative impact of a prolonged 2-basis-point assessment increase and why the FDIC should avoid penalizing community banks for supporting their communities during the pandemic. Submit comments.