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Highlights: 

• Based on updated income, loss and reserve ratio projections, which forecast lower losses from 2010 through 2014, the Restoration Plan foregoes the uniform 3 basis point assessment rate increase previously scheduled to go into effect January 1, 2011, and keeps the current rate schedule in effect. 
• The Restoration Plan also calls for the �౦��Ϸ���� to pursue further rulemaking in 2011 regarding the statutory requirement that the �౦��Ϸ���� offset the effect on small institutions of the requirement that the reserve ratio reach 1.35 percent by September 30, 2020, rather than 1.15 percent by the end of 2016. 
• A historical analysis of fund losses shows that, to maintain a positive fund balance and steady, predictable assessment rates, the reserve ratio must be at least 2 percent before a period of large fund losses and average assessment rates must be approximately 8.5 basis points. Consequently, in the NPR, the �౦��Ϸ���� proposes to - 
  • Set the DRR at 2 percent; 
  • Adopt a lower rate schedule (Table 3 in the NPR) when the reserve ratio reaches 1.15 percent so that the average rate over time should be about 8.5 basis points; and 
  • In lieu of dividends, adopt lower rate schedules (Tables 4 and 5 in the NPR) when the reserve ratio reaches 2 percent and 2.5 percent so that average rates will decline about 25 percent and 50 percent, respectively. 

Distribution: 
All �౦��Ϸ����-Insured Institutions 

Suggested Routing: 
Chief Executive Officer 
President 
Chief Financial Officer 

Note: 
�౦��Ϸ���� financial institution letters (FILs) may be accessed from the �౦��Ϸ����'s Web site at http://www.fdic.gov/news/financial-institution-letters/2010.

To receive FILs electronically, please visit http://www.fdic.gov/about/subscriptions/fil.html.

Paper copies of �౦��Ϸ���� financial institution letters may be obtained through the �౦��Ϸ����'s Public Information Center, 3501 Fairfax Drive, E-1002, Arlington, VA 22226 (1-877-275-3342 or 703-562-2200).