FDIC Deposit Assessment Rate Increase Could Have Big Impact on Small Banks
Corporate Services attorney Paul Aguggia was quoted in an S&P Global Market Intelligence article about the 2-basis point increase to deposit insurance assessment rates, recently proposed by the Federal Deposit Insurance Corporation (FDIC). The change is intended to help the fund's reserve ratio, which is the fund balance as a percent of insured deposits, reach a minimum of 1.35 percent by the statutory deadline of September 2028. Mr. Aguggia said that regardless of size, all financial institutions are likely to see an impact to their bottom lines as a result of this change.
"It's not going to be modest for everyone," he said. "It's going to affect profitability."