FDIC proposes raising bank size threshold for smaller insurance fees
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Table of Contents
The Federal Deposit Insurance Corporation has proposed changing how it defines small banks and adjusting the deposit insurance premiums those institutions pay. Currently, a bank is considered small if it holds less than $10 billion in assets. Under this proposal, that line would move to $30 billion. Any future adjustments to this number would be tied to inflation and reviewed every four years.
Why it matters: This matters because deposit insurance premiums are a significant operating cost for banks. Raising the asset threshold means more mid-sized banks would qualify for lower fee schedules, which could free up capital for lending or other uses. The changes also shift how the FDIC measures risk, rewarding large institutions that provide data to help manage their own potential failure.
Who it affects
- Insured depository institutions with assets between $10 billion and $30 billion
This is a proposed rule from the FDIC published in the Federal Register; check the original document for the full text and comment deadlines before relying on any details.
Agency: Federal Deposit Insurance Corporation
Source: Federal Register — read the official document