On October 9, the FDIC, Fed, and OCC published final rules, required by section 165(i) of the Dodd-Frank Act, for annual company-run stress testing by covered institutions with total consolidated assets greater than $10 billion. The final rule requires institutions with assets greater than $50 billion to begin annual stress testing this year. The rule delays implementation for covered institutions with total consolidated assets between $10 billion and $50 billion until October 2013. The FDIC also approved a final rule that refines the deposit insurance assessment system for insured depository institutions with more than $10 billion in assets. The final rule amends the definitions used to identify concentrations in higher-risk assets to better reflect the risk posed to institutions and the FDIC. FDIC Release. Fed Release. OCC Release.
deposit insurance assessment system
FDIC Proposed rule on Assessment Rates
On March 20, the FDIC proposed a rule to modify the deposit insurance assessment system for insured depository institutions with more than $10 billion of assets. The proposed rule would amend the definitions of leveraged loans and subprime loans used to identify concentrations of higher-risk assets, without materially affecting the overall assessments that large institutions pay. Comments must be submitted within 60 days of publication in the Federal Register. FDIC Release. FDIC Rule on Assessment Rates.
FDIC Rule on Assessments, Dividends, Assessment Base, and Large Bank Pricing
On February 7, the FDIC approved a final rule on assessments, dividends, assessment base, and large bank pricing. The rule implements changes to the deposit insurance assessment system, as required by the Dodd-Frank Act, and revises the assessment system applicable to large banks to eliminate reliance on debt issuer ratings and make it more forward looking. FDIC Release.