FDIC Proposes Revisions to Assessments (Fed. Reg.)

The FDIC proposed revisions relating to ratios and ratio thresholds for capital evaluations, the assessment base calculation for custodial banks, and the calculation of counterparty exposures for highly complex institutions.

The rule changes are intended to accommodate recent changes to federal banking agencies' capital rules. Specifically, the proposed rules would:

• revise the ratios and ratio thresholds for capital evaluations used in the FDIC risk-based deposit insurance assessment system to conform to the prompt corrective action capital ratios and ratio thresholds adopted by the FDIC, Board of Governors of the Federal Reserve System and Office of the Comptroller of the Currency (the "Agencies");
• revise the assessment base calculation for custodial banks to conform to the asset risk weights also adopted by the Agencies; and
• require all highly complex institutions to measure counterparty exposure for deposit insurance assessment purposes using the Basel III standardized approach credit equivalent amount for derivatives, and the Basel III standardized approach exposure amount for other securities-financing transactions.

Comments on the proposed rules must be submitted by September 22, 2014.

See: 79 FR 42698.