About midyear the Bank Insurance Fund will reach 1.25% of insured deposits, the level prescribed by Congress in the Financial Institutions Reform, Recovery, and Enforcement Act of 1989. Bank deposit insurance premiums are likely to decline from 23 cents per hundred dollars of deposits to about four cents.

The Savings Association Insurance Fund, which only in Washington could be labeled SAIF, stands at 0.28% of insured deposits. Unless additional money is found to fund the SAIF, it won't reach the required 1.25% level until some time after the turn of the century, at the earliest.

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