The Federal Deposit Insurance Corp. confirmed Friday that it is no longer providing more than its standard 80% loss coverage to buyers of failed banks.

An agency spokesman said the change was "a result of" the "improving economy."

Under typical loss-sharing deals, the FDIC pledges to reimburse the buyer for 80% of losses from a failed bank's assets that are covered by the agreement. Previously, the agency would pledge to offer 95% coverage on losses beyond a certain threshold.

"The FDIC feels that the additional 95/5 coverage is not necessary," the spokesman, Andrew Gray, told reporters by e-mail.

"For now, we will continue to offer the 80/20 loss share in some transactions but will continue to evaluate whether other changes to the loss-share arrangements may be necessary," he added. "This is a positive development. As a result of better pricing, more competitive bidding and an improving economy the FDIC feels that it can explore this step."

In a research note Friday, analysts from FBR Capital Markets predicted a minimal impact. "While elimination of 95/5 loss sharing could make failed-bank deals less accretive on the margin, it really does not change the overall economics of the transactions, and failed-bank acquisitions are still attractive and add value to acquirers," they said.

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