WASHINGTON – The Federal Deposit Insurance Corp. announced that its board will meet Thursday to discuss a plan to increase the required ratio of federal reserves to insured deposits.
The agency is required by Dodd-Frank to increase the reserve ratio of the fund to at least 1.35% by 2020. But the law also said that the burden of raising the reserve ratio from the old minimum of 1.15% and the new minimum of 1.35% needs to be shouldered by banks with more than $10 billion in assets.
FDIC staff are expected to provide an update on the fund’s current reserve ratio and projected growth. FDIC Chairman Martin Gruenberg said during a press conference last month that the fund was expected to reach 1.15% in 2016 but that the agency intended to have a rule in place by the end of 2015. Gruenberg added that the fund was on track to reach 1.35% by 2020.
The FDIC will also discuss a notice of final rulemaking that would establish minimum margin and capital requirements on major swaps participants.
The meeting is scheduled to be held at the FDIC’s headquarters at 10:00 a.m.