Assessments, Amendments To Incorporate Troubled Debt Restructuring Accounting Standards Update

Title: Assessments, Amendments To Incorporate Troubled Debt Restructuring Accounting Standards Update
Subject: Deposit insurance
Agency: FDIC
Status:
Proposed rule
Summary:

The Federal Deposit Insurance Corporation seeks comment on a proposed rule that would incorporate updated accounting standards in the risk-based deposit insurance assessment system applicable to all large insured depository institutions (IDIs), including highly complex IDIs. The FDIC calculates deposit insurance assessment rates for large and highly complex IDIs based on supervisory ratings and financial measures, including the underperforming assets ratio and the higher-risk assets ratio, both of which are determined, in part, using restructured loans or troubled debt restructurings (TDRs). The FDIC is proposing to include modifications to borrowers experiencing financial difficulty, an accounting term recently introduced by the Financial Accounting Standards Board (FASB) to replace TDRs, in the underperforming assets ratio and higher-risk assets ratio for purposes of deposit insurance assessments.

FR Doc:

2022-15763

Date proposed: July 21, 2022
Comments due date: Aug. 26, 2022
Effective date:

Rule compliance date:
Agency release:
Related Reg Report item(s):

Proposal would modify ratios to address changes in accounting standards for troubled debt restructurings

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