FDIC Unlikely to Reduce Deposit Insurance Premiums
The Federal Deposit Insurance Corporation (FDIC) will not reduce deposit insurance premiums charged to banks. The Dodd-Frank Wall Street Reform and Consumer Protection Act requires the Deposit Insurance Fund to have a reserve ratio of 1.35 percent by 2020. The current ratio stands above 0.4 percent according to agency Chairman Martin Gruenberg as recently reported, but was reported to be 0.32 percent at June 30, 2012 in FDIC’s last published report. The fund had as much as a negative $20 billion balance but now has $33 billion in assets.