Amends the FDIA to replace assessment guidelines for achieving and maintaining a designated reserve ratio and for independent treatment of deposit insurance funds with a requirement that the Board of Directors of the FDIC set assessments as it determines appropriate, including a maximum base rate for assessments at one basis point for insured depository institutions in the lowest-risk category.

Reduces from five years to three years the mandatory assessment recordkeeping period.

Replaces the current 1.25 percent statutory reserve ratio used to recapitalize undercapitalized insurance funds with a reserve ratio range of 1.15 to 1.4 percent of estimated insured deposits, subject to specified factors and annual redetermination.

Instructs the FDIC to establish a Deposit Insurance Fund Restoration Plan to ensure adequate reserves whenever the actual ratio in the DIF falls below the designated reserve ratio.

Directs the FDIC to conduct a bi-annual survey on efforts by insured depository institutions to bring into the conventional finance system those "unbanked" individuals and families who have rarely, if ever, held a checking account, a savings account, or other type of transaction or check cashing account at an insured depository institution.]]>

(Sec. 3) Amends the FDIA and the Federal Credit Union Act to: (1) increase the standard maximum amount of deposit insurance coverage from $100,000 to $130,000, coupled with a five-year cost-of-living adjustment index; (2) require the Federal Deposit Insurance Corporation (FDIC) to provide pass-through deposit insurance for the deposits of any employee benefit plan (except for an insured depository institution that is neither well capitalized nor adequately capitalized, which may not accept such deposits); (3) double to $260,000 the standard maximum deposit insurance for certain retirement accounts; and (4) increase the maximum amount of deposit insurance coverage for in-State municipal deposits according to a specified formula, but to no more than $2 million.

(Sec. 4) Amends the FDIA to replace assessment guidelines for achieving and maintaining a designated reserve ratio (DRR) and for independent treatment of deposit insurance funds. Requires the Board of Directors (Board) of the FDIC to set assessments as it determines appropriate, including a maximum base rate for assessments at one basis point for insured depository institutions in the lowest-risk category. (Thus, eliminates the current minimum 23 basis point cliff rate.)

Reduces from five years to three years the mandatory assessment recordkeeping period.

Increases penalties from $100 to one percent of assessments per day for failure of a depository institution assessed more than $10,000 to make timely assessment payments.

Revises guidelines governing the risk-based assessment system to make the portion of deposits attributable to lifeline accounts subject to half the assessment rate that would otherwise be applicable.

(Sec. 5) Replaces the current 1.25 percent DRR used to recapitalize undercapitalized insurance funds with a reserve ratio range of 1.15 to 1.4 percent of estimated insured deposits, subject to specified factors and annual redetermination.

(Sec. 6) Directs the Board to collect information from all appropriate sources in determining risk of DIF losses.

(Sec. 7) Revises requirements for FDIC repayment of overpaid assessments and refunds of any balance in the insurance fund in excess of the DRR.

Prescribes guidelines governing: (1) the payment of mandatory dividends to insured depository institutions whenever the DIF reserve ratio exceeds specified percentages of the estimated insured deposits required to maintain the DRR in effect at the time; and (2) a one-time credit predicated upon the December 31, 1996, assessment base of each eligible depository institution, as compared to the combined aggregate assessment base of all such institutions. Restricts the amount of such credit for depository institutions that exhibit financial, operational, or compliance weakness, including undercapitalization.

Requires the Board to establish an on-going system of credits (on-going credit pool) to be applied against future assessments on the same basis as such dividends.

(Sec. 8) Requires the Board to establish and implement a DIF restoration plan whenever its reserve ratio is projected to fall, or actually falls below the DRR. Prescribes requirements for such plans, notably restoration to the DRR level within ten years.

(Sec. 9) Requires the FDIC to prescribe final regulations within 270 days establishing the DRR, implementing increases in deposit insurance coverage, implementing the dividend requirement and the one-time assessment credit, and providing for premium assessments.

(Sec. 10) Requries studies and reports to Congress: (1) by the Comptroller General and the FDIC on the effectiveness of the prompt corrective action program administered by Federal banking agencies as well as the accuracy of FDIC risk assessments made, and the appropriateness of FDIC organizational structure in light of its regulatory mission; (2) by the FDIC and the National Credit Union Administration on the feasibility of establishing a voluntary deposit insurance system for deposits in excess of the maximum amount of deposit insurance, and of privatizing all deposit insurance at insured depository institutions and credit unions; (3) by the FDIC on the feasibility of using actual domestic deposits rather than estimated insured deposits in calculating and designating the DRR; and (4) by the FDIC on the reserve methodology and loss accounting it used between January 1, 1992, and December 31, 2004, with respect to insured depository institutions in a troubled condition.

(Sec. 11) Directs the FDIC to conduct a bi-annual survey and report to Congress on efforts by insured depository institutions to bring into the conventional finance system those individuals and families who have rarely, if ever, held a checking account, a savings account, or other type of transaction or check cashing account at an insured depository institution.

(Sec. 12) Establishes the Deposit Insurance Fund for use by the FDIC with respect to insured depository institutions whose deposits are insured by the Deposit Insurance Fund.

Authorizes the FDIC to borrow from the Federal home loan banks, with the concurrence of the Federal Housing Finance Board, such funds as it considers necessary for DIF use.

(Sec. 13) Amends specified Federal statutes to make technical and conforming amendments relating to the merger of the BIF and SAIF.]]>

Federal Deposit Insurance Reform Act of 2005 - Amends the Federal Deposit Insurance Act (FDIA) to merge the Bank Insurance Fund and the Savings Association Insurance Fund into the Deposit Insurance Fund (DIF).

(Sec. 3) Amends the FDIA and the Federal Credit Union Act to: (1) increase the standard maximum amount of deposit insurance coverage from $100,000 to $130,000, coupled with a five-year cost-of-living adjustment index; (2) require the Federal Deposit Insurance Corporation (FDIC) to provide pass-through deposit insurance for the deposits of any employee benefit plan (except for an insured depository institution that is neither well capitalized nor adequately capitalized, which may not accept such deposits); (3) double to $260,000 the standard maximum deposit insurance for certain retirement accounts; and (4) increase the maximum amount of deposit insurance coverage for in-State municipal deposits according to a specified formula, but to no more than $2 million.

(Sec. 4) Amends the FDIA to replace assessment guidelines for achieving and maintaining a designated reserve ratio (DRR) and for independent treatment of deposit insurance funds. Requires the Board of Directors (Board) of the FDIC to set assessments as it determines appropriate, including a maximum base rate for assessments at one basis point for insured depository institutions in the lowest-risk category. (Thus, eliminates the current minimum 23 basis point cliff rate.)

Reduces from five years to three years the mandatory assessment recordkeeping period.

Increases penalties from $100 to one percent of assessments per day for failure of a depository institution assessed more than $10,000 to make timely assessment payments.

Revises guidelines governing the risk-based assessment system to make the portion of deposits attributable to lifeline accounts subject to half the assessment rate that would otherwise be applicable.

(Sec. 5) Replaces the current 1.25 percent DRR used to recapitalize undercapitalized insurance funds with a reserve ratio range of 1.15 to 1.4 percent of estimated insured deposits, subject to specified factors and annual redetermination.

(Sec. 6) Directs the Board to collect information from all appropriate sources in determining risk of DIF losses.

(Sec. 7) Revises requirements for FDIC repayment of overpaid assessments and refunds of any balance in the insurance fund in excess of the DRR.

Prescribes guidelines governing: (1) the payment of mandatory dividends to insured depository institutions whenever the DIF reserve ratio exceeds specified percentages of the estimated insured deposits required to maintain the DRR in effect at the time; and (2) a one-time credit predicated upon the December 31, 1996, assessment base of each eligible depository institution, as compared to the combined aggregate assessment base of all such institutions. Restricts the amount of such credit for depository institutions that exhibit financial, operational, or compliance weakness, including undercapitalization.

Requires the Board to establish an on-going system of credits (on-going credit pool) to be applied against future assessments on the same basis as such dividends.

(Sec. 8) Requires the Board to establish and implement a DIF restoration plan whenever its reserve ratio is projected to fall, or actually falls below the DRR. Prescribes requirements for such plans, notably restoration to the DRR level within ten years.

(Sec. 9) Requires the FDIC to prescribe final regulations within 270 days establishing the DRR, implementing increases in deposit insurance coverage, implementing the dividend requirement and the one-time assessment credit, and providing for premium assessments.

(Sec. 10) Requries studies and reports to Congress: (1) by the Comptroller General and the FDIC on the effectiveness of the prompt corrective action program administered by Federal banking agencies as well as the accuracy of FDIC risk assessments made, and the appropriateness of FDIC organizational structure in light of its regulatory mission; (2) by the FDIC and the National Credit Union Administration on the feasibility of establishing a voluntary deposit insurance system for deposits in excess of the maximum amount of deposit insurance, and of privatizing all deposit insurance at insured depository institutions and credit unions; (3) by the FDIC on the feasibility of using actual domestic deposits rather than estimated insured deposits in calculating and designating the DRR; and (4) by the FDIC on the reserve methodology and loss accounting it used between January 1, 1992, and December 31, 2004, with respect to insured depository institutions in a troubled condition.

(Sec. 11) Directs the FDIC to conduct a bi-annual survey and report to Congress on efforts by insured depository institutions to bring into the conventional finance system those individuals and families who have rarely, if ever, held a checking account, a savings account, or other type of transaction or check cashing account at an insured depository institution.

(Sec. 12) Establishes the Deposit Insurance Fund for use by the FDIC with respect to insured depository institutions whose deposits are insured by the Deposit Insurance Fund.

Authorizes the FDIC to borrow from the Federal home loan banks, with the concurrence of the Federal Housing Finance Board, such funds as it considers necessary for DIF use.

(Sec. 13) Amends specified Federal statutes to make technical and conforming amendments relating to the merger of the BIF and SAIF.]]>