FDIC to Discuss Assessment Changes

The Federal Deposit Insurance Corp. is scheduled to discuss further changes Friday to its assessment system, as well as how a certain type of debt is covered by its temporary liquidity guarantee.

FDIC board members are expected to finalize a plan soon that would likely charge higher premiums to institutions that rely heavily on brokered funding or secured liabilities, such as Federal Home Loan bank advances.

It would also establish industrywide rates for the rest of the year.

In December the agency set first-quarter rates for most healthy institutions at between 12 and 14 cents for every $100 of domestic deposits.

It has yet to finalize premiums for the rest of the year; in October it proposed establishing a range of 10 to 14 basis points for subsequent quarters.

The plan would also include an additional premium of as high as 7 cents for institutions with excess noncore funding, along with credits for institutions that take steps to reduce the FDIC's resolution costs in the event of a failure.

In addition, the regulator also plans to discuss modifying coverage of debt that converts into equity under the guarantee plan it unveiled in October.

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