Assessments; Continuation of Adjusted Rate Schedule for BIF- Assessable Deposits

On November 26, 1996, the Board of Directors of the FDIC (Board) adopted a resolution to continue in effect the current downward adjustment to the assessment rate schedule applicable to deposits assessable by the Bank Insurance Fund (BIF). The continuation of the downward adjustment will apply to the semiannual assessment period beginning January 1, 1997. As a result, the BIF assessment rates will continue to range from 0 to 27 basis points. The only difference between the existing adjustment and the continuing adjustment adopted by the Board is that the continuing schedule will no longer include a reference to a minimum assessment amount. This change results from recent legislation that eliminates a statutorily-imposed minimum assessment amount. With this modification, the adjusted rate schedule will result in an estimated average annual assessment rate of approximately 0.17 basis points; the estimated annual revenue produced by this rate schedule will be $43 million. In connection with the elimination of the mandatory assessment amount, the Board has also decided to refund minimum assessment payments made to BIF with respect to that portion of the current semiannual assessment period remaining after enactment of the amending legislation.