Regulatory Alerts2022-10-24 | 2022-22986Assessments, Amendments To Incorporate Troubled Debt Restructuring Accounting Standards Update
The Federal Deposit Insurance Corporation issued a final rule amending its risk-based deposit insurance assessment system for large and highly complex insured depository institutions. The rule replaces troubled debt restructurings with modifications to borrowers experiencing financial difficulty in the underperforming and higher-risk asset ratios used to calculate assessment rates. Effective January 1, 2023, this update ensures accurate risk pricing and protects the Deposit Insurance Fund by capturing credit risk from restructured loans under updated Financial Accounting Standards Board accounting standards.
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