WASHINGTON, March 21 (LID) – The Federal Deposit Insurance Corp. (FDIC) on Tuesday proposed changes to how the nation’s largest banks’ quarterly fees to the agency are calculated.
The proposed changes to the deposit insurance assessment system for insured depository institutions would affect banks with over $10 billion of assets.
Amid the Federal Deposit Insurance Act of 2005 (FDIA; Pub.L. 109-171) requirement that the FDIC’s deposit-insurance assessment system be risk-based, the loan definitions, codified at 12 C.F.R. part 327 — are used to help identify concentrations of higher-risk assets.
Under the proposed final rule, the FDIC would change some definitions of leveraged loans and subprime loans that would require a bank to pay higher fees for the federal government’s guarantee on the institution’s deposits (RIN 3064-AD92).
“The proposal would allow the FDIC to implement the changes without materially affecting the overall assessments that large institutions pay,” the FDIC said in a statement announcing its 101-page Notice of Proposed Rulemaking.
As of Dec. 31, there were 107 FDIC-insured institutions with over $10 billion in assets.
A 60-day public comment period will begin after the proposed rule is published in the Federal Register.
The FDIC Notice of Proposed Rulemaking is available at http://www.fdic.gov/news/board/2012/2012-03-20_notice_no4.pdf.