Regulatory Alerts2020-05-20 | 2020-10454Assessments, Mitigating the Deposit Insurance Assessment Effect of Participation in the PPP, PPPLF, and MMLF
The Federal Deposit Insurance Corporation proposes a rule to mitigate the deposit insurance assessment effects on insured depository institutions participating in the Paycheck Protection Program, the PPP Lending Facility, and the Money Market Mutual Fund Liquidity Facility. The proposal would exclude PPP loans and related facilities from risk measures and assessment bases to prevent increased assessment rates due to balance sheet expansions. Additionally, the FDIC proposes providing an offset to an institution's total assessment amount for increases in the assessment base attributable to participation in these federal liquidity programs.
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