FDIC Board Votes to Increase What Banks Pay for Deposit Insurance

On October 18, the Federal Deposit Insurance Corporation (FDIC) board voted in favor of a new rule to effectively raise the fees banks will pay for deposit insurance. In a 3-0 vote, the FDIC will increase assessment rates by 2 basis points beginning the first quarter of next year, aiming to return the deposit insurance fund to its statutory minimum of 1.35%. The latest vote comes with strong industry opposition given the economic uncertainty for banks amid the potential for a recession. Congressional Republicans also raised concerns over the impact on credit access to consumers, claims the FDIC rejects. During its vote, FDIC Acting Chairman Martin Greenberg stated, “Overall, the banking industry continues to report strong earnings and is well positioned to absorb this modest increase in assessment rates.”

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