Bank Insurance Fund sets record.

WASHINGTON -- The Bank Insurance Fund has more money today than ever. During the third quarter, the bank fund rose above $18.3 billion its previous record set in 1987.

With this growth, the fund will hit its target of $1.25 for every $100 of insured deposits by mid-1995, said Art Mutton, deputy research director at the Federal Deposit Insurance Corp. To hit that target, the insurance fund will need just under $24 billion, Mr. Murton said.

The Savings Association lnsurance Fund is not expected to reach the 1.25% ratio until 2002, Mr. Mutton said. But he added: "Take that with a grain of salt. We were off on BIF by 14 years? The FDIC previously forecast it would take the bank fund until 2006 to hit 1.25%. But the industry regained health much faster than expected and, through higher premiums, rebuilt the fund in just a few years.

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