On April 18, 2023, the FDIC released its semiannual update on the Restoration Plan for the agency’s Deposit Insurance Fund (the Fund). On June 21, 2022, the FDIC amended the agency’s Restoration Plan and proposed to increase deposit insurance assessment rates by two basis points for all insured depository institutions. On October 18, 2022, the FDIC Board adopted a final rule to increase initial base deposit insurance assessment rate schedules by two basis points beginning in the first quarterly assessment period of 2023.
According to FDIC Chairman Martin J. Gruenberg, the bottom line of the update is that even with the recent failure of two large banks, the losses are not expected to have a material effect on the projected timeline for reaching the statutory minimum reserve ratio of 1.35 percent and no changes is necessary to the Amended Restoration Plan at this time. The FDIC expects the reserve ratio to reach the minimum ahead of the statutory deadline of September 30, 2028.
Read the FDIC’s press release here.
The Semiannual Update of the DIF Restoration Plan can be found here.