- In June 2026, the External LinkFDIC proposed revisions to deposit insurance assessment thresholds and rate schedules after the Deposit Insurance Fund reserve ratio exceeded the statutory minimum of 1.35 percent. The proposal would reduce initial base assessment rates by 2 basis points (bps) for small institutions and raise the small institution asset threshold from $10 to $30 billion.
- Established community banking organizations (CBOs) are currently subject to an initial base assessment rate ranging from 5 to 32 bps, depending on a formula using financial data and supervisory ratings._ As of June 30, 2026, estimated FDIC assessments total $1.6 billion at CBOs on an annualized basis.
- Under the proposed rule lowering the initial base assessment rate range to 3 to 30 bps, the estimated annual FDIC assessment would decline to a total of $1.1 billion at established CBOs as of June 30, 2026. A reduction in FDIC assessment costs would lower operating expenses for CBOs, freeing up capital that could be allocated toward technology investments, expanded lending capacity, or other strategic priorities.
Questions or comments? Please contact KC.SRM.SRA.CommunityBankingBulletin@kc.frb.org
Endnotes
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1 Community banking organizations are defined as commercial banks having less than $10 billion in total assets. Established institutions are those that have been insured for five or more years. Initial base assessment rates are subject to adjustment for unsecured debt.
The views expressed are those of the authors and do not necessarily reflect the positions of the Federal Reserve Bank of Kansas City or the Federal Reserve System.
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