Assessments, Mitigating the Deposit Insurance Assessment Effect of Participation in the Paycheck Protection Program (PPP), the PPP Lending Facility, and the Money Market Mutual Fund Liquidity Facility

Title:

Assessments, Mitigating the Deposit Insurance Assessment Effect of Participation in the Paycheck Protection Program (PPP), the PPP Lending Facility, and the Money Market Mutual Fund Liquidity Facility

Subject: Deposit insurance
Agency: FDIC
Status: Proposed rule
Summary:

The Federal Deposit Insurance Corporation is seeking comment on a proposed rule that would mitigate the deposit insurance assessment effects of participating in the Paycheck Protection Program (PPP) established by the Small Business Administration (SBA), and the Paycheck Protection Program Lending Facility (PPPLF) and Money Market Mutual Fund Liquidity Facility (MMLF) established by the Board of Governors of the Federal Reserve System. The proposed changes would (1) remove the effect of participation in the PPP and PPPLF on various risk measures used to calculate an insured depository institution’s assessment rate, (2) remove the effect of participation in the PPPLF and MMLF programs on certain adjustments to an IDI’s assessment rate, (3) provide an offset to an insured depository institution’s assessment for the increase to its assessment base attributable to participation in the MMLF and PPPLF, and (4) remove the effect of participation in the PPPLF and MMLF programs when classifying insured depository institutions as small, large, or highly complex for assessment purposes.

FR Doc:

RIN 3064-AF53

Date proposed: May 12, 2020
Comments due date: May 27, 2020
Effective date:

June 30, 2020 (application date April 1, 2020)

Rule compliance date:
Agency release:

FDIC Issues Proposed Rule to Mitigate the Deposit Insurance Assessment Effect of Participation in the Paycheck Protection Program (PPP), the PPP Lending Facility, and the Money Market Mutual Fund Liquidity Facility

Related Reg Report item(s):

Proposal would limit impact on deposit insurance premiums for participation in special financial facilities related to COVID-19 impact

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