The FDIC announced on November 24 the adoption of amendments to its risked-based deposit insurance assessment rule that revise the assessment system to incorporate changes in the regulatory capital rules that go into effect in 2015 and 2018. For deposit insurance assessment purposes, the amended rule will revise the ratios and ratio thresholds relating to capital evaluations, revise the assessment base calculation for custodial banks, and require that all highly complex institutions measure counterparty exposure for assessment purposes using the Basel III standardized approach in the new regulatory capital rules.

     Nutter Notes: The revised ratios and ratio thresholds relating to capital evaluations will become effective on January 1, 2018, and generally apply to all institutions with less than $10 billion in assets. The revised assessment base calculation for custodial banks will become effective on January 1, 2015, and applies to all custodial banks, including those institutions with under $1 billion in total assets. The changes to counterparty exposure measurement will also become effective on January 1, 2015, and do not apply to institutions under $1 billion in total assets.