Agency proposal would exempt community banks under $5 billion in assets

Washington, D.C. (July 21, 2023)—The Independent Community Bankers of America (ICBA) today said it strongly and emphatically supports the Federal Deposit Insurance Corporation’s proposed rule to exempt community banks with less than $5 billion in uninsured deposits from its special assessment following the failures of Silicon Valley Bank and Signature Bank of New York.

In its comment letter on the proposed rule, ICBA urged the FDIC to finalize the rule as proposed and applauded the agency for using an assessment base that will result in no special assessments for any community bank with less than $5 billion in assets.

“ICBA and the nation’s community banks strongly support the FDIC’s proposal to exempt the vast majority of community banks from its special assessment and to tie assessments to applicable financial institutions’ estimated uninsured deposits,” ICBA President and CEO Rebeca Romero Rainey said. “We urge the agency to finalize this rule as proposed to ensure that no community banks with less than $5 billion in assets, or less than $5 billion in uninsured deposits, pay any special assessment due to the failures of larger and riskier financial institutions.”

Since the immediate aftermath of the failures of Silicon Valley Bank and Signature Bank of New York in March, ICBA has called on the FDIC to exempt community banks from bearing financial responsibility for replenishing the Deposit Insurance Fund. ICBA said in an April letter to FDIC Chairman Martin Gruenberg that community banks should not be held responsible for losses to the DIF caused by the miscalculations and speculative practices of large financial institutions. Large banks should pay for the special assessment because they are the chief beneficiaries of these two receiverships, ICBA said.

ICBA will continue working with policymakers to ensure Washington’s response to these failures distinguish large banks that pose systemic risk to the financial system from the thousands of local community banks that continue to appropriately manage risk and do right by their customers and communities.

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