On February 7th, the FDIC approved a final rule on Assessments, Dividends, Assessment Base and Large Bank Pricing. The rule revises the assessment system applicable to large banks to eliminate reliance on debt issuer ratings and make it more forward looking, as required by the Dodd-Frank Act. The new large bank pricing system will result in higher assessment rates for banks with high-risk asset concentrations, less stable balance sheet liquidity, or potentially higher loss severity in the event of failure. Over the long term, large institutions that pose higher risk will pay higher assessments when they assume these risks rather than when conditions deteriorate. The revisions are effective April 1, 2011. FDIC Press Release.