The 2022 operating budget and an update on the restoration plan for the deposit insurance fund (DIF) are on the discussion agenda for the board of the federal bank deposit insurance agency when it meets Tuesday (Dec. 14).
The Federal Deposit Insurance Corp. (FDIC) Board also said it would vote on five “summary items” on its agenda, which include: the designated reserve ratio for the DIF in 2022; the agency’s strategic plan for the upcoming five years (2022-26); and a resolution regard credit risk retention rule determination for qualified residential mortgage and related exemptions.
In June, the board agreed to maintain course on its restoration plan to bring the DIF (the fund that insures savings in banks) to 1.35% of total savings within eight years. The restoration plan was adopted in the fall of 2020, after the fund’s dilution by the surge of savings to banks made during the height of the coronavirus crisis, which included government stimulus payments made to many consumers.
However, also in June, the board learned that the fund had sunk to 1.25% of savings insured, 10 points below the mandated level by the restoration. Staff, at the time, said the fund was on track to reach its restoration plan level within eight years. However, it noted, slower than expected economic growth, market volatility or “additional fiscal or monetary stimulus” could result in increased deposit growth at banks – or losses to the DIF.
The meeting, to be broadcast live via the Internet, is set to begin at 10 a.m. ET.