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The Bank Policy Institute called on the FDIC Office of the Inspector General to investigate the FDIC’s recent special assessment, which exempted the vast majority of community banks.
Letter from Megabanks: BPI—which represents the nation’s largest too-big-to-fail banks—expressed concerns about the $19.2 billion cost of the special assessment, which followed last year’s FDIC resolutions of Silicon Valley Bank and Signature Bank of New York. The megabank group nevertheless said it supports the agency’s use of the systemic risk exception—which protects uninsured depositors at large banks—in “appropriate” cases.
ICBA Special Assessment Advocacy: ICBA led the fight for the FDIC’s community bank exemption from the special assessment to replenish the Deposit Insurance Fund following the large bank failures, which ultimately ensured no special assessments for any community bank with less than $5 billion in assets.
ICBA View on Systemic Risk Exception: Immediately following the large bank failures and regulators’ announcement of the systemic risk exception, ICBA President and CEO Rebeca Romero Rainey repeatedly said community banks shouldn’t have to pay any special assessment to cover the systemically risky institutions’ uninsured depositors.
Assessment Outlook: ICBA has since expressed support for regulator proposals to decrease deposit insurance assessments for community banks with the DIF reserve ratio on track to reach the statutory minimum two years ahead of schedule.