Federal Deposit Insurance coverage Company: Assessments, Revised Deposit Insurance coverage Evaluation Charges

B-334745

November 7, 2022

The Honorable Sherrod Brown
President
The Honorable Patrick J. Toomey
rank member
Committee on Banking, Housing and City Affairs
United States Senate

The Honorable Maxine Waters
Chairwoman
The Honorable Patrick McHenry
rank member
Monetary Companies Committee
Home of Representatives

Theme: Federal Deposit Insurance coverage Company: Assessments, Revised Deposit Insurance coverage Evaluation Charges

Pursuant to part 801(a)(2)(A) of title 5 of america Code, that is our report on an essential rule promulgated by the Federal Deposit Insurance coverage Company (FDIC) entitled “Assessments, Charges revised evaluation of deposit insurance coverage” (RIN: 3064-AF83). We acquired the usual on October 25, 2022. It was printed within the federal register as a ultimate rule on October 24, 2022. 87 Fed. Reg. 64314. Efficient date is January 1, 2023.

The FDIC offers that the ultimate rule will increase preliminary base deposit insurance coverage evaluation charge schedules by 2 foundation factors, starting with the primary quarterly evaluation interval of 2023. The FDIC additionally offers that the rise in evaluation charge schedules will improve the chance that the reserve ratio will attain the authorized minimal of 1.35 % earlier than the authorized deadline of September 30, 2028, in accordance with the FDIC’s Modified Restoration Plan, and is meant to help development within the Deposit Insurance coverage Fund (DIF) in progress towards the FDIC’s long-term objective of a 2 % Designated Reserve Ratio (DRR).

We enclose our evaluation of the FDIC’s compliance with the procedural steps required by part 801(a)(1)(B)(i) by (iv) of title 5 with respect to the rule. In case you have any questions on this report or wish to contact the GAO officers accountable for analysis work associated to the subject material of the rule, please contact Shari Brewster, Affiliate Normal Counsel, at (202) 512-6398.


Shirley A Jones
Managing Deputy Normal Counsel

Enclosure

cc: M. Andy Jimenez
Director, Workplace of Legislative Affairs
Federal Deposit Insurance coverage Company

ENCLOSURE

REPORT UNDER 5 USC § 801(a)(2)(A) ON A MAJOR RULE
ISSUED BY THE
FEDERAL DEPOSIT INSURANCE CORPORATION
ENTITLED
“ASSESSMENTS, REVISED DEPOSIT INSURANCE ASSESSMENT RATES”
(RIN: 3064-AF83)

(i) Value-benefit evaluation

In its submitting with us, the Federal Deposit Insurance coverage Company (FDIC) indicated that it believed that making ready a cost-benefit evaluation of this ultimate rule was not relevant.

(ii) Company actions associated to the Regulatory Flexibility Act (RFA), 5 USC §§ 603–605, 607, and 609

The FDIC said that as a result of the ultimate rule relates on to charges imposed on insured depository establishments (IDIs) for deposit insurance coverage, the ultimate rule isn’t topic to the Act. Nonetheless, the FDIC said that it was voluntarily submitting data related to the RFA. The FDIC indicated on this regard that roughly 3,394 IDIs can be thought-about small entities for functions of the Act, that the ultimate rule will improve the preliminary base evaluation charge schedules for these small entities by 2 foundation factors, and that the full annual quantity paid in value determinations by these small entities, collectively, will improve by roughly $160 million, from $317 million to $475 million.

On the particular person financial institution degree, the FDIC indicated that fewer than 350 small entities will expertise annual evaluation will increase better than $100,000 and none will expertise annual evaluation will increase better than $150,000. The FDIC additional indicated that these annual evaluation will increase are important for under a handful of small entities as a result of solely 5 small entities will expertise annual evaluation will increase better than 2.5 % of their non-interest bills, and solely two will expertise evaluation will increase. greater than 5 % of what staff’ wages and advantages paid.

(iii) Company actions related to sections 202–205 of the Unfunded Mandates Reform Act of 1995, 2 USC §§ 1532–1535

As an impartial regulatory company, the FDIC isn’t topic to the Act.

(iv) Different related data or necessities below legal guidelines and govt orders

Administrative Process Act, 5 USC §§ 551 and ss.

On July 1, 2022, the FDIC printed a proposed rule. 87 federal. registration 39388. The FDIC said that it acquired a complete of 171 feedback: 102 from IDI or IDI’s holding corporations, 10 from commerce associations, 1 from members of Congress, and 58 from different events, primarily individuals affiliated with group banks. The FDIC responded to feedback on this ultimate rule.

Paperwork Discount Act (PRA), 44 USC §§ 3501–3520

The FDIC said that the ultimate rule doesn’t create new data collections or overview any present data collections below the Act. Due to this fact, the FDIC states that it has not requested overview of any data assortment request by the FDIC. Workplace of Administration and Funds.

Authorized authorization of the rule

The FDIC promulgated this rule pursuant to sections 1813, 1815, 1817–1819, and 1821 of title 12 of america Code.

Govt Order No. 12866 (Regulatory Planning and Assessment)

As an impartial regulatory company, the FDIC isn’t topic to the Order.

Govt Order No. 13132 (Federalism)

As an impartial regulatory company, the FDIC isn’t topic to the Order.

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