The FDIC scheduled a board meeting for tomorrow to vote on its ICBA-opposed proposals to dramatically increase deposit insurance assessments and to eliminate its Office of Supervisory Appeals.
Assessment Proposal: The agency is proposing to raise deposit insurance assessment rates by 2 basis points on all insured institutions. ICBA and community bankers have repeatedly expressed opposition to the plan, including in an ICBA-led grassroots campaign earlier this year.
Faulty Assumptions: In a joint letter last week, ICBA and other groups said the FDIC’s proposal is based on a faulty assumption that the Deposit Insurance Fund will not meet its minimum level by as late as 2034. In fact, the latest Quarterly Banking Profile suggests the statutory minimum is likely to be satisfied as soon as the first quarter of 2023, they said. A previous joint letter called on the FDIC to halt its proposed rate hike.
ICBA Pushback: In a national news release after the FDIC released its quarterly data last month, ICBA President and CEO Rebeca Romero Rainey said the data show there is no need for a rate hike. In a previous comment letter, ICBA said dramatically raising rates would disproportionately affect community banks and fail to appropriately account for large and complex institutions.
Supervisory Appeals: The FDIC board is also set to discuss proposed amendments to guidelines for appeals of material supervisory determinations. ICBA has strongly opposed the agency’s decision to reinstate the Supervision Appeals Review Committee and eliminate the Office of Supervisory Appeals less than six months after the independent appeals forum became operational.
Ongoing Advocacy: ICBA will continue to engage policymakers in opposition to these proposals ahead of tomorrow’s board meeting.
