Assessment Savings a Testament to Community Bank Resilience

For years we made the case that the deposit-insurance assessment base is unfair for community banks. And for years no one seemed to listen. To some of us community bankers, it may have even seemed like a pipe dream.

But the savings that community banks are seeing this month on their second-quarter assessment premiums aren’t a dream. They are the real thing, and these savings will continue for years to come.

Community bankers have been reporting savings of upwards of 50 percent on their premiums—that money can be reinvested in our communities to promote our economic recovery. The years of campaigning for deposit-insurance parity are paying off.

And let’s not forget, basing deposit-insurance assessments on total assets minus tangible capital instead of domestic deposits was a priority for ICBA and community banks. No one else moved a muscle on this issue.

It was our battle. It was an uphill slog, and we prevailed. It just goes to show that community banks can accomplish anything—that some pipe dreams can come true.

7 thoughts on “Assessment Savings a Testament to Community Bank Resilience

  1. Thank you, thank you. I follow your articles. I am a director in small community bank, what is to happen to us? The interest rate probably will remain at 0% next 2 years, benefitting clearly the Wall Street Banks.

  2. If any banker in the United States of America thinks that FDIC would have changed the formula without the SOLE efforts of ICBA, they are disillusioned….

    Thank you for making a difference for all our banks and giving a little parity “back”. It is far past the time when the big banks that imposed the risk should have to pay for their gambling.

  3. Mary-

    Thanks for your comment. There are many reasons why your bank may not have saved any money on the assessment change. To further investigate the issue, it would be best to check with the FDIC to find out why there wasn’t a change.

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