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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 -
With Federal Deposit Insurance Corp. reserves erasing crisis-era losses, the agency is staring down a critical decision on how to implement a congressionally required increase in the insurance fund.
December 26 -
A new proposal by the FDIC could further discourage the use of noncore deposits, including those facilitated by deposit brokers and listing services and even certain reciprocal instruments not subject to the brokered-fund penalty.
July 17
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.