ICBA Statement on FDIC Proposal to Raise Deposit Insurance Assessment Rates

Washington, D.C. (June 21, 2022) — Independent Community Bankers of America (ICBA) President and CEO Rebeca Romero Rainey issued the following statement on today’s Federal Deposit Insurance Corp. proposal to increase deposit insurance assessment rates.

“ICBA and the nation’s community banks are closely reviewing today’s FDIC proposal to amend its Deposit Insurance Fund Restoration Plan by increasing deposit insurance assessment rates by 2 basis points on all insured depository institutions.

“Due to economic stimulus measures enacted in response to the pandemic, deposit growth is outpacing Deposit Insurance Fund growth, causing the DIF reserve ratio to decline below the required 1.35 percent minimum. Today’s FDIC proposal is designed to increase the likelihood that the DIF reserve reaches the statutory minimum of 1.35 percent by the September 2028 deadline.

“ICBA has supported the FDIC’s previous DIF Restoration Plan to provide sufficient time and flexibility for the surge of insured deposits to normalize without increasing community bank insurance assessments. However, we are concerned that today’s proposal to raise assessment rates by 2 basis points will have a significant impact on many community banks, which fund deposit insurance through their quarterly assessments.

“We look forward to working with the FDIC to mitigate the potential adverse impact on community banks while at the same time ensuring that the Deposit Insurance Fund reserve ratio meets its statutory minimum of 1.35 percent by Sept. 30, 2028.”

About ICBA

The Independent Community Bankers of America® creates and promotes an environment where community banks flourish. ICBA is dedicated exclusively to representing the interests of the community banking industry and its membership through effective advocacy, best-in-class education, and high-quality products and services.

With nearly 50,000 locations nationwide, community banks constitute roughly 99 percent of all banks, employ nearly 700,000 Americans and are the only physical banking presence in one in three U.S. counties. Holding nearly $5.9 trillion in assets, over $4.9 trillion in deposits, and more than $3.5 trillion in loans to consumers, small businesses and the agricultural community, community banks channel local deposits into the Main Streets and neighborhoods they serve, spurring job creation, fostering innovation and fueling their customers’ dreams in communities throughout America. For more information, visit ICBA’s website at www.icba.org.

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