On May 11, 2023, the Board of Directors of the Federal Deposit Insurance Corporation (“FDIC”) approved a notice of proposed rulemaking (“Proposed Rule”) that would impose special assessments to recover the loss to the Deposit Insurance Fund (“DIF”) in connection with the use of the “systemic risk” exception to the least-cost resolution test (“Systemic Risk Determination”) in connection with the resolutions of Silicon Valley Bank (“SVB”) and Signature Bank (“Signature”). The total amount to be collected under the special assessments would be equal to the losses to the DIF attributable to the protection of uninsured depositors at SVB and Signature, which the FDIC currently estimates to be $15.8 billion. The Proposed Rule notes that the special assessments “will be adjusted as the loss estimate changes.”
Under the Proposed Rule, the “assessment base” would be equal to an insured depository institution’s (“IDI”) estimated uninsured deposits as of December 31, 2022, adjusted to exclude the first $5 billion in estimated uninsured deposits. The special assessments would be collected at an annual rate of approximately 12.5 basis points over eight quarterly assessment periods, and the first quarterly assessment period would begin on January 1, 2024 (with the first assessment payment due by June 28, 2024).
Comments on the Proposed Rule are due 60 days after its publication in the Federal Register.