Regulatory Alerts2021-02-25 | 2021-03456Amendments to Deposit Insurance Assessments Addressing Optional CECL Capital Transition Effects
The Federal Deposit Insurance Corporation (FDIC) has finalized amendments to its risk-based deposit insurance assessment system for large and highly complex banks. These changes eliminate the double counting of a specified portion of Current Expected Credit Losses (CECL) transitional amounts within financial measures used to calculate assessment rates and loss severity. The rule preserves existing regulatory capital relief provisions while ensuring that assessment rates accurately reflect each institution’s risk to the Deposit Insurance Fund.
Share