Comments due July 21 on FDIC special-assessment proposal

A proposed rule that would spread a special deposit insurance assessment among 113 banks having large amounts of uninsured deposits is out for comment until July 21, according to a notice in Monday’s Federal Register.

The Federal Deposit Insurance Corp. (FDIC) Board issued the proposal during its May 11 open meeting. The assessment is meant to cover uninsured deposits that were held at the now-defunct Silicon Valley Bank (SVB) of Santa Clara, Calif., and Signature Bank of New York, N.Y. Both banks failed in March and held large amounts of uninsured deposits, and the FDIC said it would cover the uninsured depositors at both institutions under the “systemic risk exemption” in federal banking law. The agency estimated that about $15.8 billion in costs of the failures of the two banks was attributable to the protection of uninsured depositors at the two institutions.

Banking organizations with total assets of more than $50 billion each would pay more than 95% of the special assessment, it said, adding that no banking organizations with total assets under $5 billion would be subject to the special assessment.

Reg lookup: Special Assessments Pursuant to Systemic Risk Determination