Prior to 2007, the FDIC Board of Directors reviewed premium rates
semiannually. As of January 1, 1993, when the risk based assessment
system was introduced, each bank and thrift paid an annual assessment
rate of
between 23 and 31 cents per $100 of assessable deposits. After
the BIF reached the Designated Reserve Ratio (DRR) of 1.25 percent
at the end
of May 1995, the Board approved a reduction in assessment rates
for BIF members to a range of between 4 and 31 cents per $100 in
assessable deposits.
In November 1995, the Board approved a new assessment rate structure
for the BIF, with a range of between 0 and 27 cents per $100 in
assessable deposits, effective January 1, 1996.
The Deposit Insurance
Funds Act of 1996 provided for the capitalization of the SAIF
at the target DRR of 1.25 percent by means of a one-time
special assessment on SAIF-member institutions. In December 1996,
the Board lowered
SAIF assessment rates to a range of between 0 and 27 cents per
$100 in assessable deposits, which is identical to the rate schedule
previously
approved for BIF members. The new rates were effective October
1, 1996
for Sasser and BIF-member Oakar institutions, and effective on
January 1, 1997 for all other SAIF-insured institutions. As a result
of the
merger of the BIF and SAIF to form the DIF effective March 31,
2006, all insured
institutions are subject to the same assessment rate schedule.
The
FDIC merged the Bank Insurance Fund (BIF) and the Savings Association
Insurance Fund (SAIF) to form the Deposit Insurance Fund (DIF)
on March 31, 2006 in accordance with the Federal Deposit Insurance
Reform Act of
2005. As a result of the merger of the BIF and SAIF, all insured
institutions are subject to the same assessment rate schedule.
The
amount each institution
is assessed is based upon statutory factors that include the
balance of insured deposits as well as the degree of risk the institution
poses to
the insurance fund.
Beginning in 2007, rates will range between
5 and 43 cents per $100 in assessable deposits. Institutions
in Risk Category I
will be charged
a rate between 5 and 7 cents.
|
Risk
Category |
I* |
II
|
III
|
IV
|
Minimum |
Maximum |
Annual
Rates (in basis points) |
5
|
7
|
10
|
28
|
43
|
* Rates for institutions that do not pay the minimum
or maximum rate will vary between these rates.
Note: Basis points is
cents per $100 of assessable deposits
(annual rate).
Insurance
Fund Ratios - The Designated Reserve
Ratio (DRR) is the level that the FDIC Board would like
the Deposit Insurance Fund (DIF) to achieve as a percentage
of estimated insured deposits. Current legislation permits
the FDIC
Board to set the DRR between 1.15 percent and 1.50 percent
(previous legislation had a hard target of 1.25 percent).
For 2007, the FDIC
Board has set the DRR at 1.25 percent. The Deposit Insurance
Fund (DIF) Reserve Ratio is the current (or projected
or historical) fund balance as a percentage of current (or
projected or historical) estimated insured deposits.
Memoranda
on Assessment Rate Cases and Outlook for the DIF
Before 2007, assessment rate cases were semi-annual reports
to the FDIC Board of Directors recommending the deposit insurance
assessment rates
for the
DIF (or, prior to the fund merger, the BIF and the SAIF).
The
rule on risk-based assessments adopted in November 2006 sets
rates effective January 1, 2007. Rates are no longer required by
law to
be set semiannually.
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2008
2007
Prior Assessment
Periods
Financial
Institution Letters (FILs)
A directory of Financial Institution Letters (FILs) pertaining to risk-related
premiums.
ASSESSMENT HOTLINE: 1-800-759-6596
or email us at
assessments@fdic.gov
