Final Rule on Surveys, Insurance Survey Standards


The Federal Deposit Insurance Corporation (FDIC) promulgated a final rule, applicable to all insured depositories, to increase the rates of analysis of the basic insurance in 2 bases, starting in the first quarter of the assessment year of 2023. the Reserve Retention Plan (DRR) for the DIF in 2 percent for 2023. A series of research rate changes are expected to increase the likelihood that the DIF’s reserve ratio will reach zero. The legal minimum of 1.35 percent is illegal. expiration date is September 30, 2028. The evaluation rate will remain in place until and unless the stock reaches or exceeds 2 percent. reserves in order to support DIF growth toward the FDIC’s long-term goal of 2 percent DRR. The downward trend in the assessment rate will take effect when the reserve reaches 2 percent, and increases again when it reaches 2.5 percent.

Related Information: The contents of, and references to, this FIL apply to all financial institutions insured by the FDIC.


  • The extraordinary growth of insured deposits in the first and second quarters of 2020 led to the DIF reserve ratio, calculated by dividing the DIF balance by the total amount of insured deposits in the bank, fell below the minimum rule of 1.35 percent.
  • On June 21, 2022, the FDIC’s Board of Directors (Board) adopted a Plan Reform Plan and a notice of proposed rulemaking to increase the expect the reserve ratio to return to at least 1.35 percent by September 30, 2028.
    • The FDIC continues to indicate that the reserve ratio may not reach the statutory minimum of 1.35 percent by the statutory deadline of September 30, 2028, there will be no increase in assessment rates.

  • After carefully reviewing the information received in the application and updating the analysis and estimates, the Board of Directors accepted it as a proposal. As a result and without change, the proposed law increases the insurance research process to 2 bases.
  • The assessment rate schedules applicable to all insured warehouses will be effective January 1, 2023, and will apply during the initial assessment period. quarter of 2023 (ie, January 1 through March 31, 2023, with the due date of June 30. , 2023).
  • The increase in survey rates is expected to have a small effect on the capital levels of the institutions, which are expected to reduce income slightly. at an annual average of 1.2 percent, and should not affect loans or credit facilities in any meaningful way. It also reduces the risk of future cycle growth.
  • The increase in research rates is also expected to support DIF’s growth towards the long term goal of the FDIC’s 2 percent DRR, which the Board of Directors voted to maintain for 2023, will increase the chances of DIF remaining positive throughout. periods of high losses due to bank failures, consistent with the FDIC’s long-term financial management strategy.
  • The new rate structure will remain in place until the reserve ratio reaches or exceeds 2 percent, before further action is taken by the Board of Directors. The downward trend in the assessment rate will take effect when the reserve reaches 2 percent, and increases again when it reaches 2.5 percent.

Related Topics:

Insurance Insurance

Related Resources:

Review, 12 CFR Part 327

Leave a Comment