FDIC proposals on insurance assessments and resolution planning draw industry response

The Bank Policy Institute (BPI) and the American Bankers Association (ABA) have submitted formal comments regarding two Federal Deposit Insurance Corporation (FDIC) proposals aimed at revising deposit insurance assessments and bank resolution planning.

The FDIC proposals include adjusting deposit insurance assessment rates and establishing a “resolution readiness adjustment,” which would allow banks to lower fees by demonstrating preparedness for an orderly wind-down. The ABA noted that while the proposals are a step in the right direction, it recommended that proposed rate reductions apply to all institutions regardless of size. The ABA also supports increasing and indexing the asset threshold for large banks to account for inflation.

Regarding resolution planning, the FDIC seeks to reduce reporting burdens by eliminating more than half of current content requirements and moving covered institutions to a three-year filing cycle. While both organizations support efforts to align the FDIC’s role with more efficient resolution processes, the BPI expressed concerns that certain aspects of the resolution readiness approach could create cybersecurity and data privacy risks for banks.