Regulatory Alerts2020-06-26 | 2020-13751Assessments, Mitigating the Deposit Insurance Assessment Effect of Participation in the Paycheck Protection Program (PPP), the PPP Liquidity Facility, and the Money Market Mutual Fund Liquidity Facility
The Federal Deposit Insurance Corporation issued a final rule mitigating the deposit insurance assessment effects on insured depository institutions participating in the Paycheck Protection Program, PPP Liquidity Facility, and Money Market Mutual Fund Liquidity Facility. The regulation removes the impact of these programs on key risk measures used to calculate assessment rates and provides a direct offset for the resulting increase in the assessment base. Furthermore, it excludes PPP loans and MMLF-purchased assets from total asset calculations to ensure accurate classification of institutions as small, large, or highly complex for assessment purposes.
Share