FDIC Issues Final Special Assessment to Recover Deposit Insurance Fund Losses

Posted: Nov 22 2023

The FDIC approved a final special assessment to recover the hit to the Deposit Insurance Fund resulting from the agency’s decision to protect uninsured depositors following the Silicon Valley Bank and Signature Bank failures. The assessment will be collected at an annual rate of approximately 13.4 basis points—3.36 basis points quarterly—for an anticipated eight quarterly assessment periods. No bank with total assets below $5 billion will pay the assessment, as it is aimed at banks that benefited most from the assistance provided under the FDIC’s systemic risk determination, the agency said in a statement.

Out of the $18.7 billion hit to the DIF, approximately $16.3 billion was attributable to the protection of uninsured depositors, according to the FDIC. The agency originally estimated the loss attributable to covering uninsured depositors at $15.8 billion. The loss estimates will be periodically adjusted as assets are sold, liabilities are satisfied and receivership expenses are incurred, it added. The agency estimates that 114 banks will be subject to the special assessment, which will be collected beginning with the first quarterly assessment period of 2024.

To view the final rule, visit: https://www.fdic.gov/news/board-matters/2023/2023-11-16-notice-dis-a-fr.pdf

To read the FDIC factsheet on the assessment, visit: https://www.fdic.gov/news/fact-sheets/special-assessment-final-rule-11-07-23.html