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Federal Deposit Insurance Corporation

Division of Supervision

550 17th Street NW, Washington, DC 20429

Deposit Insurance Assessments

September 15, 1999

Proposed Revisions to Assessment Regulation (Part 327 of FDIC’s Rules and


The FDIC Board of Directors has proposed the attached revisions to the FDIC's regulation
governing deposit insurance assessments and is seeking comment on the proposal. The Board
believes the proposed changes will enhance the present system by allowing institutions with
improving capital positions to benefit from the improvement more quickly, while requiring those
whose capital is falling to pay a higher assessment sooner. Comments on the proposal are due
by October 25, 1999.


Specifically, the Board is proposing that the FDIC's assessment regulation (Part 327) be
amended to:


base capital group determinations under the FDIC's risk-based assessment system on
Call Report data for the quarter ending three months before the beginning of the
assessment period, instead of six months as at present;
shorten the required notification period from 30 days to 15 days prior to each
assessment period's payment date;
increase from 30 days to 90 days the time in which an institution may request a review of
its assessment risk classification; and
recognize administrative changes internal to the FDIC that have already taken place.

For more information, please contact James W. Thornton, Senior Banking Analyst in the
Division of Insurance (DOI), at (202) 898-6707 or Richard Jones, Chief of DOI's Assessments
Implementation Section, at (202) 898-6592.


Arthur J. Murton

Attachment: Federal Register, September 8, Vol. 64, No. 172, pages 48719-48721
HTML Format PDF Format (26 Kb - PDF help or hard copy)
Distribution: FDIC-Insured Banks
NOTE: Paper copies of FDIC financial institutions letters may be obtained through the FDIC's
Public Information Center, 801 17th Street, NW, Room 100, Washington, DC 20434 (800-2766003 or (703) 562-2200).