FDIC Proposes New Risk-Based Insurance Assessment System

Guidance
Information Technology Risk Management Program (IT-RMP)Federal Deposit Insurance Corporation (FDIC)Information Security

The FDIC's Board of Directors today approved for public comment two proposed rules governing deposit insurance assessments under the Federal Deposit Insurance Reform Act of 2005. One proposal would create a new system that would more closely tie what banks pay for deposit insurance to the risks they pose. It also would adopt a new base schedule of rates that the FDIC Board could adjust up or down, depending upon the revenue needs of the insurance fund. The second proposal issued today would continue to set the designated reserve ratio (DRR) for the fund at 1.25 percent of estimated insured deposits.

"The proposed new system of risk-based assessments would allow the FDIC to adhere more closely to sound insurance principles because the safer an institution is, the less it will pay for deposit insurance," said FDIC Chairman Sheila Bair. "We hope that most FDIC-insured institutions will find our proposals reasonable and fair, and we look forward to receiving comments."

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