The Federal Deposit Insurance Corporation issued a semiannual update on its Deposit Insurance Fund (DIF) Restoration Plan, reporting that the DIF reserve ratio rose to 1.28 percent as of 31 December 2024 and that staff continue to project a return to the 1.35 percent statutory minimum ahead of the statutory deadline, with no changes recommended to the plan. The reserve ratio fell below 1.35 percent in September 2020 after insured deposits grew faster than DIF net worth, with insured-deposit growth attributed to COVID-era fiscal and monetary stimulus. Since the prior update, the reserve ratio increased by 6 basis points, from 1.22 percent as of 30 June 2024 to 1.28 percent as of 31 December 2024, and a further update is expected alongside the first quarter Quarterly Banking Profile. Separately, Acting Chairman Travis Hill asked staff to analyze whether the assessment base (generally total consolidated assets minus tangible equity) should be used instead of insured deposits as the denominator for measuring DIF exposure, citing a mismatch between the basis for charging assessments and the metric used to gauge the fund’s health.
Federal Deposit Insurance Corporation 2025-05-20
Federal Deposit Insurance Corporation reports DIF reserve ratio rose to 1.28 percent and recommends no changes to the restoration plan
The Federal Deposit Insurance Corporation reported that the Deposit Insurance Fund (DIF) reserve ratio increased to 1.28% as of 31 December 2024, with projections indicating a return to the 1.35% statutory minimum ahead of schedule. Acting Chairman Travis Hill requested an analysis on whether the assessment base should be adjusted to better align with the metric used to evaluate the fund's health.