A Sea Change

Acting Comptroller of the Currency John Walsh called it a “sea change.” He’s right. Today the FDIC board of directors voted to base assessments on assets minus tangible capital instead of domestic deposits, which will level the playing field and lower premiums for community banks. After years of prodding by ICBA and the nation’s community bankers, policymakers will ensure that the largest banks pay their fair share of deposit-insurance premiums.

Meanwhile, requiring these institutions to cover the risks they pose to the Deposit Insurance Fund will mean lower premiums for community banks for years to come—an estimated $4.5 billion over the next three years alone. That certainly isn’t pocket change.

With financial institutions across the nation on edge about what financial regulatory reforms will mean for them, community banks can take comfort that this change will have a positive impact on their bottom line. It will allow community banks to reinvest their savings in their neighborhoods, strengthening Main Street communities across the nation. This change will do all of us a lot of good.

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