The FDIC projects the Deposit Insurance Fund reserve ratio will likely reach its 1.35% minimum by the statutory deadline of Sept. 30, 2028, according to an agency update on its DIF restoration plan.
FDIC: DIF restoration on track
December 08, 2023 / By ICBA
The FDIC projects the Deposit Insurance Fund reserve ratio will likely reach its 1.35% minimum by the statutory deadline of Sept. 30, 2028, according to an agency update on its DIF restoration plan.
The FDIC projects the Deposit Insurance Fund reserve ratio will likely reach its 1.35% minimum by the statutory deadline of Sept. 30, 2028, according to an agency update on its DIF restoration plan.
Details: In the update, the FDIC said:
The DIF reserve ratio declined between December 2022 and June 2023 due to increased loss provisions and strong insured deposit growth.
The increase in assessment rate schedules that became effective on Jan. 1, 2023, resulted in additional assessment revenue that slightly offset the decline in the DIF in the first half of 2023.
Gruenberg Statement: FDIC Chairman Martin Gruenberg said that while the banking industry remains resilient, downside risks from inflation, interest rates, and geopolitical uncertainty could exacerbate the risk of losses to the DIF.
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