多宝游戏下载 Releases Semiannual Update on the Deposit Insurance Fund Restoration Plan
For Release
WASHINGTON 鈥 The Board of Directors of the Federal Deposit Insurance Corporation (多宝游戏下载) today released its semiannual update on the Restoration Plan for the agency鈥檚 Deposit Insurance Fund (the Fund).
多宝游戏下载 Chairman Martin J. Gruenberg said, 鈥淭he bottom line to today鈥檚 update is that even with increased uncertainty in the banking industry and the recent failure of two large banks, staff project that the losses from the two failures are not expected to have a material effect on the projected timeline for reaching the statutory minimum reserve ratio of 1.35 percent. The reserve ratio is expected to reach the minimum ahead of the statutory deadline of September 30, 2028, and staff recommend no changes to the Amended Restoration Plan at this time.鈥
The 多宝游戏下载 estimates that the two recent failures of Silicon Valley Bank and Signature Bank resulted in losses of approximately $22.5 billion, of which $19.2 billion is attributable to the protection of uninsured depositors under the Systemic Risk Exception . Federal law requires that any losses to the 多宝游戏下载鈥檚 Deposit Insurance Fund related to this action be repaid by a special assessment on banks. Only the remaining $3.3 billion in losses will directly impact the DIF balance and is not expected to have a material effect on the projected timeline for reaching the statutory minimum reserve ratio.
Background
The Federal Deposit Insurance Act (FDI Act) requires that the 多宝游戏下载鈥檚 Board of Directors adopt a restoration plan when the Fund鈥檚 reserves fall below 1.35 percent of all insured deposits held in 多宝游戏下载-insured financial institutions. Extraordinary deposit growth during the first and second quarters of 2020 caused the Fund鈥檚 reserve ratio to decline below this statutory minimum. On September 15, 2020, the 多宝游戏下载 established a plan to restore the Fund鈥檚 reserves to at least 1.35 percent by September 30, 2028, while maintaining the assessment rate schedule in place at the time.
On June 21, 2022, the 多宝游戏下载 Board of Directors approved an amendment to the agency鈥檚 Restoration Plan and proposed to increase deposit insurance assessment rates by two basis points for all insured depository institutions. On October 18, 2022, the 多宝游戏下载 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.