Big US banks to pay billions per year to replenish deposit insurance fund - Printable Version
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Big US banks to pay billions per year to replenish deposit insurance fund - Levin - 12-05-2023
May 12, 20236:36 AM GMT+8Last Updated 11 hours ago
By Pete Schroeder
May 11 (Reuters) - Large U.S. lenders will bear most of the cost of replenishing a deposit insurance fund that was drained of US$16 billion by the collapse of Silicon Valley Bank and two other lenders, although mid-sized banks will also be on the hook, the Federal Deposit Insurance Corporation (FDIC) said on Thursday.
The bank regulator will apply a "special assessment" fee of 0.125% to uninsured deposits of lenders in excess of US$5 billion, based on the amount of uninsured deposits a bank held at the end of 2022
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While the fee applies to all banks, in practice lenders with more than US$50 billion in assets would cover over 95% of the cost
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The top 14 U.S. lenders will need to fork out an estimated US$5.8 billion a year, which could erode their earnings per share by a median 3%
Much more at: https://www.reuters.com/markets/us/fdic-board-discuss-special-assessment-fees-banks-2023-05-11/