WASHINGTON–The FDIC is reporting that the special assessments that will be needed to recover the estimated $19.2 billion of losses due to uninsured depositors to the federal bank deposit insurance fund resulting from the failures of two banks in March will be proposed through rulemaking when it meets in April.
In a released statement, the FDIC said the failures of Silicon Valley Bank of Santa Clara, Calif., and Signature Bank of New York, N.Y., resulted in total losses of approximately $22.5 billion. The FDIC said $19.2 billion was attributable to the decision to protect uninsured depositors under the Systemic Risk Exception, a provision that allows the FDIC to cover the funds of all depositors in the interests of protecting the economy.
“Federal law requires that any losses to the FDIC’s Deposit Insurance Fund (DIF) related to this action be repaid by a special assessment on banks,” the board stated. “Only the remaining $3.3 billion in losses will directly impact the DIF balance and is not expected to have a material effect on the projected timeline for reaching the statutory minimum reserve ratio.”
On Track for 2028
Under the current plan, which the agency adopted in 2020, the FDIC said it is projected to reach its statutorily mandated reserve ratio of 1.35% for the Bank Insurance Fund by September 2028. In 2020, the FDIC board amended the plan to increase the initial base deposit insurance assessment rate schedules by two basis points beginning in the first quarterly assessment period of this year.
Now, the FDIC board said it will be making no changes to the plan adopted to reach that reserve ratio.
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