Recent FDIC actions
At its October Board meeting, the FDIC updated its estimate of the condition of the BIF, and proposed a long-term plan for management of the fund, consistent with changes to FDIC’s statutory authorities in the Dodd-Frank Wall Street Reform Act.
Because of reduced estimates of insurance losses for 2010, FIDC’s reserve ratio has risen from minus 38 bp of insured deposits as of March 2010 to minus 15 bp as of September.
This, coupled with the extension of the time for the fund to reach the designated reserve ratio (DRR), the target level, from 2016 to 2020, allowed the agency to announce the suspension of a 3 bp assessment increase, previously planned for the first quarter of 2011.
The proposed fund management plan takes into account the following statutory changes in the Dodd Frank Act:
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