NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) released a new research report entitled “Large & Small Bank Performance During the Financial Crisis.” The report makes the following key points:
- The Federal Deposit Insurance Corporation (FDIC) is currently seeking comments on a proposed rule change concerning how established small banks will be assessed for the deposit insurance once the Deposit Insurance Fund’s Reserve Ratio reaches the threshold of 1.15%.
- The proposal suggests that FDIC is calculating a probability of failure for all insured depository institutions based upon past failures and will base deposit assessments on these probabilities of failure rather than banks’ existing risk buckets.
- The proposed new rule would not impact small banks under five years old, insured branches of foreign banks, or large and highly complex institutions and is not expected to change the overall revenue collected from the banks.
- In particular, the proposed rule reduces the insurance assessment of many small banks that do not make use of brokered or other forms of non-core deposits and shifts the assessment burden in this “revenue neutral” scheme to banks which do make use of non-core deposits.
To view the full report, please click here: www.krollbondratings.com/show_report/2646
About Kroll Bond Rating Agency
KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).