ICBA appreciates FDIC pledge to cut special assessment: Nation’s community banks should not shoulder Wall Street’s burden MortgagePress.comICBA, Wall Street, FDIC, endent Community Bankers of America, Camden R. Fine, Deposit Insurance Fund
The Independent Community Bankers of America (ICBA) appreciates
the Federal Deposit Insurance Corporation's pledge to cut its
20-basis-point special emergency assessment if Congress approves
legislation expanding the FDICs existing line of credit with
Treasury.
"Scaling back the assessment is a good first step, and we are
very grateful to Chairman Bair and the FDIC for being responsive to
our recommendations, but more needs to be done. Reducing the
assessment will lessen the impact of this expense burden, but the
burden remains and additional alternatives should be considered by
the FDIC board, such as broadening the assessment base," said ICBA
president and CEO Camden R. Fine. "Main Street community banks did
not trigger the current economic crisis and should not have to
shoulder a disproportionate assessment burden for those that
did."
To rebuild the Deposit Insurance Fund (DIF), ICBA proposes that
the FDIC change the structure of the assessment base and levy a
systemic risk premium on the too-big-to-fail institutions that
helped trigger the problems that led to the fund being depleted.
ICBA recommendations include:
• The assessment should be based on bank assets, not just
domestic deposits
• Accounting rules should be changed
• Systemic risk premium should be levied on large banks
ICBA supports legislative provisions in the House that increase
the FDICs line of credit at the Treasury to further demonstrate
that the full faith and credit of the United States backs insured
deposits. Senate Banking Committee Chairman Christopher Dodd
(D-Conn.) is expected to advance legislation to increase the
agencys borrowing authority. ICBA will continue to work with the
FDIC to find alternative ways to rebuild the DIF and urges that any
proposals set forth not ask common-sense community bankers to
shoulder a disproportionate share of the burden so that they can
continue to serve their customers in cities and towns throughout
America.
For more information, visit www.icba.org.
