FDIC Sets Reserve Ratio

On December 14, the FDIC approved a final rule which sets the insurance fund’s designated reserve ratio at 2% of estimated insured deposits. The Dodd-Frank Act requires a minimum ratio of 1.35%. The ratio is set by the FDIC based on: (i) risk of loss to the insurance fund, (ii) economic conditions affecting the banking industry, (iii) the prevention of sharp swings in the assessment rates and (iv) any other factors deemed important by the FDIC. FDIC Release. Final Rule.