Regulatory Alerts2022-07-27 | 2022-15763FDIC Proposed Rule: Amendments to Incorporate Troubled Debt Restructuring Accounting Standards Update
The Federal Deposit Insurance Corporation proposes amendments to the risk-based deposit insurance assessment system for large and highly complex insured depository institutions to align with FASB Accounting Standards Update No. 2022-02. The rule replaces the recognition of Troubled Debt Restructurings with 'modifications to borrowers experiencing financial difficulty' in the underperforming assets ratio and adjusts the definition of refinances within the higher-risk assets ratio. This change ensures that supervisory ratings and financial measures used to calculate assessment rates accurately reflect current accounting standards for credit risk.
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