[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1474 Introduced in House (IH)]







104th CONGRESS
  1st Session
                                H. R. 1474

To amend the Federal Deposit Insurance Act to improve the requirements 
  relating to the designated reserve ratio for the deposit insurance 
 funds and the procedures for funding the reserves in such funds, and 
                          for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 7, 1995

 Mr. LaFalce introduced the following bill; which was referred to the 
              Committee on Banking and Financial Services

_______________________________________________________________________

                                 A BILL


 
To amend the Federal Deposit Insurance Act to improve the requirements 
  relating to the designated reserve ratio for the deposit insurance 
 funds and the procedures for funding the reserves in such funds, and 
                          for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Deposit Insurance Funds Management 
Improvement Act of 1995''.

SEC. 2. DEPOSIT INSURANCE FUND IMPROVEMENTS.

    (a) Establishment of Designated Reserve Ratio as a Floor Rather 
Than a Target.--Section 7(b)(2)(A)(iv) of the Federal Deposit Insurance 
Act (12 U.S.C. 1817(b)(2)(A)(iv)) is amended to read as follows:
                            ``(iv) Establishment of designated reserve 
                        ratio.--The Board of Directors shall establish 
                        the designated reserve ratio for each insurance 
                        fund in accordance with the following:
                                    ``(I) The designated reserve ratio 
                                of any insurance fund shall be not less 
                                than 1.25 percent of the estimated 
                                insured deposits of members of such 
                                fund.
                                    ``(II) The ratio of any insurance 
                                fund shall be established at an amount 
                                which the Board of Directors determines 
                                will provide for an appropriate amount 
                                of reserves against losses which may 
                                reasonably be expected to be incurred 
                                by the fund without resulting in an 
                                excessive buildup in the fund.''.
    (b) Reduction in Assessment Rate if Designated Reserve Ratio is 
Met.--Section 7(b)(2)(A) of the Federal Deposit Insurance Act (12 
U.S.C. 1817(b)(2)(A)) is amended by adding at the end the following new 
clause:
                            ``(v) Clarification of authority to reduce 
                        assessments amounts.--The authority of the 
                        Board of Directors to set semiannual 
                        assessments to maintain the reserve ratio of 
                        any insurance fund at the designated reserve 
                        ratio includes the authority to reduce such 
                        assessments by any appropriate amount if the 
                        reserve ratio of such fund is equal to or 
                        greater than the minimum designated reserve 
                        ratio of such fund.''.
    (c) Consideration of Effect of Assessment Rate Differential.--
Section 7(b)(2)(B) of the Federal Deposit Insurance Act (12 U.S.C. 
1817(b)(2)(B)) is amended to read as follows:
                    ``(B) Consideration of effect of assessment rate 
                differential.--In setting the semiannual assessment 
                rates for insured depository institutions, the Board of 
                Directors may consider any risk to the safety and 
                soundness of any deposit insurance fund, the members of 
                any deposit insurance fund, or the deposit insurance 
                system as a whole which is posed by any difference 
                between the assessment rate for Savings Association 
                Insurance Fund members and the assessment rate for Bank 
                Insurance Fund members.''.
    (d) Repeal of Minimum SAIF Assessment Rule.--Section 7(b)(2) of the 
Federal Deposit Insurance Act (12 U.S.C. 1817(b)(2)) is amended by 
striking subparagraph (E).
                                 <all>