FDIC Supervisory Insights Summer 2009

Regulatory and Supervisory
Roundup
continued from pg. 45
Subject Summary
Final Rule on Deposit Insurance
Assessments for the First Quarter of
2009 (PR-136-2008, December 16, 2008;
FIL-143-2008, December 16 , 2008)
Revisions to Regulatory Reports Filed
by FDIC-Insured Depository Institutions
(FIL-141-2008, December 11,
2008)
Consumer Understanding of
Increased Deposit Insurance
Coverage (PR-130-2008, December
4, 2008)
Regulation Z (Truth in Lending) and
Regulation C (Home Mortgage Disclosure)
– Amendments to the Regulations
(FIL-134-2008, December 2, 2008)
Expansion of Bidder List for Troubled
Institutions (PR-127-2008, November
26, 2008)
The FDIC Board of Directors approved the final rule on deposit insurance assessment rates for
first quarter 2009. The rule raises assessment rates uniformly by 7 basis points (annual rate) for
first quarter 2009 only. Currently, banks pay between 5 and 43 basis points of their domestic
deposits for FDIC insurance. Under the final rule, risk-based rates would range between 12 and
50 basis points (annualized) for the first quarter 2009 assessment. Most institutions would be
charged between 12 and 14 basis points.
See http://www.fdic.gov/news/news/financial/2008/fil08143.html.
In response to the FDIC’s adoption of the Temporary Liquidity Guarantee Program (TLGP), the
Federal Financial Institutions Examination Council approved revisions to the Consolidated Reports
of Condition and Income, the Thrift Financial Report, and the Report of Assets and Liabilities of
U.S. Branches and Agencies of Foreign Banks. These regulatory reporting revisions, which took
effect December 31, 2008, will be applicable to FDIC-insured depository institutions that participate
in the Transaction Account Guarantee Program. A participating institution will report the
amount and number of its noninterest-bearing transaction accounts, as defined in the FDIC’s
regulations governing the TLGP, of more than $250,000. Institutions have the option to exclude
such accounts that are otherwise fully insured under the FDIC’s deposit insurance rules as determined
and documented by the institution. The FDIC will use this information to calculate assessments
for participants in the Transaction Account Guarantee Program.
See http://www.fdic.gov/news/news/financial/2008/fil08141.html.
Federal deposit insurance coverage has significantly increased, primarily as a result of a temporary
boost in the basic insurance limit from $100,000 to $250,000. The FDIC issued an explanation
of the new changes along with tips and information to help bank customers better understand
their insurance coverage and how to be sure all their deposits are fully protected.
See http://www.fdic.gov/news/news/press/2008/pr08130.html.
The closed-end mortgage provisions of Regulation Z, which implement the Truth in Lending Act
and the Home Ownership and Equity Protection Act, have been amended. Among other changes,
these provisions now include consumer protections specific to “higher-priced mortgage loans.”
The compilation and reporting of loan data provisions of Regulation C, which implements the
Home Mortgage Disclosure Act, now conform to the definition of higher-priced mortgage loans
under Regulation Z. The amendments to Regulations Z (with limited exceptions) and C take effect
on October 1, 2009. See http://www.fdic.gov/news/news/financial/2008/fil08134.html.
The FDIC is establishing a modified bidder qualification process to expand the pool of qualified
bidders for the deposits and assets of failing depository institutions. The process will allow interested
parties that do not currently have a bank charter to participate in the bid process through
which failing depository institutions are resolved.
See http://www.fdic.gov/news/news/press/2008/pr08127.html.
46 Supervisory Insights Summer 2009