ICBA Supports FDIC Special Assessment’s Community Bank Exemption

Washington, D.C. (Nov. 17, 2023)—Independent Community Bankers of America (ICBA) President and CEO Rebeca Romero Rainey issued the following statement on the Federal Deposit Insurance Corporation’s final rule implementing special assessments for the resolutions of Silicon Valley Bank and Signature Bank of New York.

“ICBA and the nation’s community banks strongly support the FDIC’s final rule exempting community banks with less than $5 billion in uninsured deposits from its special assessment. By finalizing the special assessment as proposed — which ICBA advocated in its July comment letter — the agency’s assessment base will result in no special assessments for any community bank with less than $5 billion in assets following the failures of larger and riskier financial institutions.

“The FDIC’s exemption for the vast majority of community banks recognizes the importance of distinguishing large banks that pose systemic risk to the financial system from the thousands of community banks that serve consumers and small businesses.

“Since the immediate aftermath of the failures of Silicon Valley Bank and Signature Bank of New York, ICBA has repeatedly called on the FDIC to exempt community banks from bearing financial responsibility for losses to the Deposit Insurance Fund caused by the miscalculations and speculative practices of large financial institutions.

“ICBA will continue working with policymakers to ensure Washington’s response to these failures does not affect the community banks that continue to appropriately manage risk and do right by their customers and communities.”

About ICBA
The Independent Community Bankers of America® has one mission: to create and promote an environment where community banks flourish. We power the potential of the nation’s community banks through effective advocacy, education, and innovation.

As local and trusted sources of credit, America’s community banks leverage their relationship-based business model and innovative offerings to channel deposits into the neighborhoods they serve, creating jobs, fostering economic prosperity, and fueling their customers’ financial goals and dreams. For more information, visit ICBA’s website at icba.org.

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