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The Federal Deposit Insurance Corp. is set to vote Thursday morning on a proposal that would force big banks to bear the assessment burden of growing the agency's federal reserves to a new minimum.
October 22 -
Under the Dodd-Frank Act, the agency must issue a proposal that would require large banks to bear the brunt of raising the DIF reserve ratio higher once it reaches a statutorily imposed minimum. With the fund rapidly increasing, the agency is likely to put out a plan by the end of 2015 sparking a debate over what the FDIC might do.
September 11 -
U.S. banking earnings in the second quarter rose 7.3% from a year earlier to $43 billion as institutions enjoyed higher revenues and lower noninterest expenses, the Federal Deposit Insurance Corp. said Wednesday.
September 2
WASHINGTON — The Federal Deposit Insurance Corp. on Tuesday will release results of the banking industry's performance for the third quarter.
The report, known as the Quarterly Banking Profile, will provide an update on how close the Deposit Insurance Fund is to triggering higher assessments for big banks and a premium discount for smaller banks.
The last FDIC earnings update reported total net income in the second quarter of $43 billion, which was up from $40.1 billion in the second quarter of 2014.
The second quarter results also showed that the FDIC fund that insures depositors increased by $2.3 billion during the quarter to $67.6 billion, raising the ratio of reserves to insured deposits to 1.06%. Under a recent FDIC proposal implementing a provision of the Dodd-Frank Act, when the fund's reserve ratio reaches 1.15% most banks will see their assessments fall roughly 30%. The largest banks, meanwhile, will see an additional assessment charge aimed at boosting the reserve ratio to 1.35% over the next two years. Dodd-Frank requires that the fund reach a minimum reserve ratio of 1.35% by 2020.
During an October meeting, FDIC officials projected that the reserve ratio would reach 1.15% in early 2016, but also said the ratio could reach that level even sooner.