This story appeared in Bank Digest.
The Federal Deposit Insurance Corporation has issued a Financial Institution Letter on a notice of proposed rulemaking regarding the minimum reserve ratio requirement for the Deposit Insurance Fund. The NPR was approved by the FDIC's Board of Directors on Oct. 22, 2015, to implement provisions of the Dodd-Frank Act and would raise the minimum reserve ratio of the DIF from 1.15 percent to 1.35 percent. It would also require that the reserve ratio reach 1.35 percent by Sept. 30, 2020, and that the FDIC offset the effect of the increase in the minimum reserve ratio on insured depository institutions with total consolidated assets of less than $10 billion
In addition, the NPR proposes to surcharge large banks and grant credits to small banks for the portion of their regular assessments that contribute to increasing the reserve ratio from 1.15 percent to 1.35 percent. Comments on the NPR are due by Jan. 5, 2016.