Tigert silent on premium cut as the bank fund hits a high.

WASHINGTON The Federal Deposit Insurance Corp. board all but ignored news on Tuesday that the Bank Insurance Fund hit a record $19.4 billion in the third quarter.

At her first open meeting as FDIC chairman, Ricki R. Tigert refused to tip her hand on the question of cutting deposit insurance rates after the bank fund is recapitalized next year.

Ms. Tigert acknowledged that the fund had surpassed its previous 1987 high of $18.3 billion and added, "This is indeed testimony to the strong health and recovery of the banking system."

But she said nothing about the likelihood or timing of a rate cut --- a top priority for the banking industry. The three other FDIC board members didn't comment on the fund.

After the meeting, Ms. Tigert said she is still studying the question of dropping bank deposit insurance rates.

"I'm continuing to ask for data on that issue," she said. "I've asked for some new modeling" from the FDIC staff. Ms. Tigert did not describe what types of new models the agency is working on, but she promised more information in the next two weeks.

The FDIC must soon deliver revenue projections for 1995 to the Office of Management and Budget, which is working on the government budget for next year. That revenue figure should give the industry some idea how big a rate cut to expect, and how soon it may come. Most industry representatives are assuming a rate cut will take effect July 1 for the second half of 1995.

As expected, the FDIC announced Tuesday that the bank fund grew nearly $2 billion in the third quarter to a record $19.4 billion, or $1.03 for every $100 of insured deposits.

The bank fund actually totals $20.9 billion because of an additional $1.5 billion in reserves to cover the cost of anticipated failures.

When the fund is at 1.25% -- or about $25 billion the FDIC has the power to lower bank premiums. The bank fund is expected to hit that target in the first half of 1995.

Currently, banks pay between 23 cents and 31 cents per $100 of domestic deposits. That's triple what insurance cost a few years ago.

James D. McLaughlin, director of agency relations at the American Bankers Association, predicted Tuesday that rates will fall to 12 cents next year and to 4 or 5 cents in 1996.

The FDIC also said Tuesday that the Savings Association Insurance Fund had $2 billion on Sept. 30, up $300 million in the quarter. The thrift fund now has 29 cents backing every $100 of insured deposits.

As a result, thrift premiums may remain at current levels long after bank rates are slashed, an issue the FDIC is currently assessing.

In addition to news on the size of the two insurance funds, the FDIC said 12 banks with $1.2 billion in assets have failed this year, at a cost of $125 million.

The number of problem banks fell by 45 in the third quarter, to 316. Those troubled banks hold $47.9 billion in assets, down $5.5 billion from June 30.

The number of insured banks totaled 10,978 at Sept. 30, down 138 for the quarter and 509 from the same time a year earlier.

The number of FDIC staff fell by 820 in the third quarter and has been cut by 2,100 positions, or 14.8%, so far this year. As the industry has regained its health, the FDIC needs fewer employees to handle bank failures. The

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