FDIC increases bank fee that NCUA rejected for credit unions

The FDIC on Tuesday did something the NCUA board has steadfastly refused to do.

It increased by two basis points the assessments banks must pay in an effort to shore up its Deposit Insurance Fund.

During the pandemic, deposits in financial institutions grew—in part due to the stimulus payments people received. That put a strain on the FDIC’s Deposit Insurance Fund, whose reserve ratio dipped below the 1.30% required under federal law. This in turn required the FDIC to adopt a restoration plan to raise the reserve ratio to 1.35% within eight years.

When the restoration plan was adopted initially, the FDIC board did not impose an assessment increase.

 

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