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    American bank insurer imposes banking surcharge

    The FDIC or Federal Deposit Insurance Corporation officially imposed a surcharge on large bank on Tuesday. The measure is supposed to help them to raise funds for their insuring deposits. Furthermore, it can also help failed banks.  

    Following the newly established law, financial institutions with funds under ten billion dollars require paying a surcharge of about 4.5 cents for every hundred dollars of their assessment base.     

    Obviously, the FDIC is actually willing to boost the overall ration of the amount in the Deposit Insurance Fund to the total of insured funds at American financial institutions to approximately 1.35% in a couple of years.  

    By the way, the 2010 Dodd-Frank financial reform has already modified the minimum requirement for the ratio from 1.15% to 1.35% and set a strict 2020 deadline in order to ensure a drastic surge. Additionally, it urges large banks to pay for extra reserves.

    The overall insurance fund's balance close to the end of the last year, was approximately $72.6 billion, while the reserve ratio got to 1.11%, as the FDIC states. The ratio is supposed to achieve 1.15% in the first half of 2016.


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