[Federal Register Volume 90, Number 242 (Friday, December 19, 2025)]
[Rules and Regulations]
[Pages 59369-59376]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-23425]
=======================================================================
-----------------------------------------------------------------------
FEDERAL DEPOSIT INSURANCE CORPORATION
12 CFR Part 327
RIN 3064-AG24
Special Assessment Collection
AGENCY: Federal Deposit Insurance Corporation.
ACTION: Interim final rule; request for comments.
-----------------------------------------------------------------------
SUMMARY: The Federal Deposit Insurance Corporation (FDIC) has been
collecting a special assessment to recover losses arising from the
protection of uninsured depositors under the systemic risk exception,
as required by statute. To ensure that the FDIC recovers the correct
amount of losses while minimizing the risk of overcollecting or
undercollecting in aggregate, the FDIC is adopting this interim final
rule to reduce the rate at which the special assessment will be
collected in the eighth collection quarter from 3.36 basis points to
2.97 basis points, and provide an offset to regular quarterly deposit
insurance assessments for banks subject to the special assessment if
the amount collected exceeds losses following the resolution of
litigation between the FDIC and SVB Financial Trust (SVBFT) and again
following the termination of the receiverships.
DATES: The interim final rule is effective December 19, 2025. Comments
must be received on or before January 20, 2026.
ADDRESSES: You may submit comments, identified by RIN 3064-AG24, by any
of the following methods:
FDIC Website: https://www.fdic.gov/federal-register-publications. Follow instructions for submitting comments on the agency
website.
Email: [email protected]. Include 3064-AG24 in the subject
line of the message.
Mail: Jennifer M. Jones, Deputy Executive Secretary,
Attention: Comments-RIN 3064-AG24, Federal Deposit Insurance
Corporation, 550 17th Street NW, Washington, DC 20429.
Hand Delivery to FDIC: Comments may be hand-delivered to
the guard station at the rear of the 550 17th Street NW building
(located on F Street NW) on business days between 7 a.m. and 5 p.m.
Public Inspection: Comments received, including any
personal information provided, may be posted without change to https://www.fdic.gov/federal-register-publications. Commenters should submit
only information that the commenter wishes to make available publicly.
The FDIC may review, redact, or refrain from posting all or any portion
of any comment that it may deem to be inappropriate for publication,
such as irrelevant or obscene material. The FDIC may post only a single
representative example of identical or substantially identical
comments, and in such cases will generally identify the number of
identical or substantially identical comments represented by the posted
example. All comments that have been redacted, as well as those that
have not been posted, that contain comments on the merits of the
proposed rule will be retained in the public comment file and will be
considered as required under all applicable laws. All comments may be
accessible under the Freedom of Information Act.
FOR FURTHER INFORMATION CONTACT: Division of Insurance and Research:
Kayla Shoemaker, Chief, Banking and Regulatory Policy Section, 202-898-
6962, [email protected]; Daniel Hoople, Acting Associate Director,
Financial Risk Management Branch, 202-898-3835, [email protected]; Legal
Division: Ryan McCarthy, Counsel, 202-898-7301, [email protected].
SUPPLEMENTARY INFORMATION:
I. Background
Section 13(c)(4)(G) of the Federal Deposit Insurance Act (FDI Act)
permits the FDIC to take certain actions with respect to an insured
depository institution (IDI) for which the FDIC has been appointed
receiver, following a recommendation by the FDIC Board of Directors
(Board), with the written concurrence of the Board of Governors of the
Federal Reserve System (Board of Governors), and a determination of
systemic risk by the Secretary of the U.S. Department of Treasury
(Treasury)
[[Page 59370]]
(in consultation with the President).\1\ On March 12, 2023, the
Secretary of the Treasury, acting on the recommendation of the Board
and Board of Governors, and after consultation with the President,
invoked the statutory systemic risk exception with respect to the
resolutions of Silicon Valley Bank and Signature Bank.\2\
---------------------------------------------------------------------------
\1\ 12 U.S.C. 1823(c)(4)(G). As used in this interim final rule,
the term ``bank'' is synonymous with the term ``insured depository
institution'' as it is used in section 3(c)(2) of the FDI Act, 12
U.S.C. 1813(c)(2).
\2\ 12 U.S.C. 1823(c)(4)(G). See also: FDIC PR-17-2023. ``Joint
Statement by the Department of the Treasury, Federal Reserve, and
FDIC.'' March 12, 2023. https://www.fdic.gov/news/press-releases/2023/pr23017.html.
---------------------------------------------------------------------------
Under section 13(c)(4)(G) of the FDI Act, the loss to the Deposit
Insurance Fund (DIF) arising from the use of a systemic risk exception
must be recovered from one or more special assessments on IDIs,
depository institution holding companies (with the concurrence of the
Secretary of the Treasury with respect to holding companies), or both,
as the FDIC determines to be appropriate.\3\
---------------------------------------------------------------------------
\3\ 12 U.S.C. 1823(c)(4)(G)(ii)(I).
---------------------------------------------------------------------------
The estimated losses to the DIF attributable to Silicon Valley Bank
and Signature Bank are periodically adjusted as the FDIC, as receiver
of the failed banks, sells assets, satisfies liabilities, and incurs
receivership expenses. The exact amount of actual losses incurred, and
therefore the amount the FDIC must recover through the special
assessment, will not be determined until the FDIC terminates the
receiverships.
II. The Final Rule Implementing the Special Assessment
On November 29, 2023, the FDIC published in the Federal Register a
final rule (the special assessment rule) to implement a special
assessment, as required by the FDI Act, to recover the loss to the DIF
arising from the protection of uninsured depositors following the
closures of Silicon Valley Bank and Signature Bank.\4\
---------------------------------------------------------------------------
\4\ See 88 FR 83329 (Nov. 29, 2023). See also 12 CFR 327.13.
---------------------------------------------------------------------------
As stated in that rulemaking, the special assessment rule allocated
the collection over eight quarterly assessment periods to reduce the
likelihood of overcollecting and to mitigate the liquidity effects of
the special assessment on IDIs by requiring smaller, consistent
quarterly payments.
The FDIC began collecting the special assessment with the invoice
for the first quarterly assessment period of 2024 (i.e., January 1,
2024, through March 31, 2024), with a payment date of June 28, 2024.
Throughout the initial eight-quarter collection period, the special
assessment has been collected at a quarterly rate of 3.36 basis points,
multiplied by an IDI's special assessment base of estimated uninsured
deposits as reported in the Consolidated Reports of Condition and
Income (Call Report) or Report of Assets and Liabilities of U.S.
Branches and Agencies of Foreign Banks (FFIEC 002), reported for the
quarter that ended December 31, 2022, adjusted to exclude the first $5
billion in estimated uninsured deposits from the IDI, or for IDIs that
are part of a holding company with one or more subsidiary IDIs, at the
banking organization level.\5\
---------------------------------------------------------------------------
\5\ Under the special assessment rule, the term ``banking
organization'' includes IDIs that are not subsidiaries of a holding
company as well as holding companies with one or more subsidiary
IDIs. Estimated uninsured deposits are reported in Memoranda Item 2
on Schedule RC-O, Other Data for Deposit Insurance Assessments of
both the Call Report and FFIEC 002. Insured depository institutions
IDIs with less than $1 billion in total assets as of June 30, 2021,
were not required to report the estimated amount of uninsured
deposits on the Call Report for December 31, 2022. Therefore, for
IDIs that had less than $1 billion in total assets as of June 30,
2021, the amount and share of estimated uninsured deposits as of
December 31, 2022, would be zero. For an IDI that is part of a
holding company with more than one subsidiary IDI, the $5 billion
deduction is apportioned based on its estimated uninsured deposits
as a percentage of total estimated uninsured deposits held by all
IDI affiliates in the banking organization.
---------------------------------------------------------------------------
The special assessment rule included provisions to extend the
collection period or cease collection early in response to changes to
the estimated losses to the DIF or if assessments collected change due
to corrective amendments to the amount of uninsured deposits reported
for the December 31, 2022, reporting period. Specifically, the special
assessment rule included provisions to allow the FDIC to extend the
collection period over one or more quarters as needed to collect the
difference between the amount collected after the initial eight
collections and the estimated or actual losses at the end of the eight-
quarter collection period. Conversely, if, prior to the end of the
initial eight-quarter collection period, the estimated or actual losses
are less than the amount collected, the special assessment rule
included a provision to allow the FDIC to cease collection of the
special assessment before the end of the initial eight-quarter
collection period. However, pursuant to the special assessment rule,
the FDIC is required to collect at a quarterly rate of 3.36 basis
points until the FDIC has collected enough to recover actual or
estimated losses, which means that it may collect more than the amount
of estimated losses. Additionally, even if the FDIC ceased collection
early, a future decrease in losses would result in the FDIC
overcollecting.
As with all receiverships, the loss estimates attributable to
Silicon Valley Bank and Signature Bank are periodically adjusted as the
FDIC, as receiver of the failed banks, sells assets, satisfies
liabilities, and incurs receivership expenses. The exact amount of
actual losses incurred will be determined when the FDIC terminates the
receiverships. In the event that the final loss amounts at the
termination of the receiverships exceed the amount collected, the
special assessment rule provides for a one-time final shortfall special
assessment.
III. The Interim Final Rule
The objectives of the interim final rule are to ensure that the
FDIC recovers the correct amount of losses, while minimizing the risk
of overcollecting or undercollecting. Through this rule, during the
eighth collection quarter, the FDIC will recover approximately the full
amount of estimated losses as of September 30, 2025, while minimizing
any amounts collected in excess of the estimated losses, by reducing
the rate at which the special assessment will be collected from 3.36
basis points to 2.97 basis points. The interim final rule also requires
the FDIC to provide an offset to regular quarterly deposit insurance
assessments for IDIs subject to the special assessment if the aggregate
amount collected exceeds estimated losses following the resolution of
litigation between the FDIC and SVBFT, and again following the
termination of the receiverships. As provided for in the special
assessment rule, if losses at the termination of the receiverships
exceed the amount collected, the FDIC will implement a one-time final
shortfall special assessment to ensure the full amount of actual losses
is recovered as required by law.
A. Reduction in Rate for Eighth Special Assessment Collection
As of September 30, 2025, the total loss estimate for Silicon
Valley Bank and Signature Bank attributable to the protection of
uninsured depositors pursuant to the systemic risk determination, which
must be recovered through the special assessment, was $16.7 billion. As
of September 30, 2025, the FDIC completed six quarterly collections of
the special assessment, at an average of $2.1 billion per quarter,
resulting in collection of $12.7 billion. The FDIC anticipates
collecting another $2.1 billion for the seventh quarter of the initial
collection period, with an invoice payment date of December 30,
[[Page 59371]]
2025, for a total projected collection of $14.8 billion.
Absent the interim final rule, the FDIC would invoice and collect
the eighth quarterly special assessment period, with an invoice payment
date of March 30, 2026, at the quarterly rate of 3.36 basis points for
a projected amount of $2.1 billion. This would bring the projected
cumulative amount collected for all eight collection quarters to $16.9
billion. Thus, if the FDIC collected the eighth quarter at the
quarterly rate of 3.36 basis points, as required by the special
assessment rule, the FDIC would collect approximately $250 million more
than estimated losses as of September 30, 2025.
To ensure that the FDIC collects the correct amount (i.e., an
amount approximately equal to the loss estimate as of September 30,
2025, and to avoid overcollection), the FDIC, through this interim
final rule, will collect the special assessment in the eighth
collection quarter, with an invoice payment date of March 30, 2026, at
a reduced rate of 2.97 basis points. This is the rate required to
collect an amount approximately equal to the difference between
estimated losses of $16.7 billion as of September 30, 2025, and the
anticipated collection amount of $14.8 billion through the seventh
quarterly collection period. Because the cumulative amount collected
through the initial special assessment period is projected to equal the
loss estimate as of September 30, 2025, the extended assessment period
will not be necessary, and therefore, as a conforming change, the
interim final rule removes the extended assessment period provisions of
the special assessment rule.
B. Potential Offset to Regular Quarterly Deposit Insurance Assessments
To ensure that the FDIC collects the correct amount, without
overcollecting or undercollecting, the FDIC will provide offsets to
regular quarterly deposit insurance assessments for IDIs subject to the
special assessment, as described below. Any offsets provided would be
an amount proportional to the amount that each bank paid towards the
special assessment.\6\
---------------------------------------------------------------------------
\6\ In the event that an IDI's regular quarterly deposit
insurance assessment amount is less than the offset amount allocated
to the IDI, the FDIC would apply the offset to the IDI's assessment
amount for one or more additional quarters as needed, until the
offset amount is exhausted.
---------------------------------------------------------------------------
The largest known variable that could result in banks overpaying is
the outcome of pending litigation between the FDIC and SVBFT. SVBFT has
asserted a $1.71 billion deposit claim, and the special assessment
calculation assumes the estimated $1.71 billion claim will result in a
$1.71 billion loss to the DIF. However, the FDIC, as receiver, has
asserted defenses to this deposit claim, and any amounts awarded based
on its defenses would offset all or part of the $1.71 billion loss and
reduce the total amount of losses the FDIC needs to recover through the
special assessment. Thus, the outcome of the litigation could result in
a significant overpayment of the special assessment.
As a result, the FDIC has decided to provide an offset to IDIs
subject to the special assessment at the subsequent quarterly
assessment if, following the final resolution of the SVBFT litigation,
the total amount collected through the special assessment exceeds the
loss estimates at that time. More specifically, the offset would occur
beginning the quarter after the resolution of the final, unappealable,
judgment or settlement of the litigation between the FDIC and SVBFT.
Under the interim final rule, the FDIC will provide an offset at that
time if the collection amount exceeds loss estimates, including any
changes to loss estimates resulting from estimated asset recoveries or
other asset disposition efforts, and regardless of the outcome of the
SVBFT litigation. However, if the collection amount is equal to or less
than loss estimates, the FDIC will take no action until the termination
of the receiverships, consistent with the special assessment rule. The
FDIC will, potentially, provide an offset at that time due to the
magnitude of the SVBFT litigation, which is significantly larger than
other known variables impacting the loss estimates.
C. Final Offset to Regular Quarterly Deposit Insurance Assessments or
One-Time Final Shortfall Special Assessment
In addition, under the interim final rule, upon termination of the
receiverships, the FDIC will either (1) provide an offset to regular
quarterly deposit insurance assessments for IDIs subject to the special
assessment if the amount collected exceeds losses, or (2) collect from
IDIs subject to the special assessment a one-time final shortfall
special assessment, as provided in the special assessment rule. In the
latter scenario, the FDIC will implement a one-time final shortfall
special assessment with advanced notice of 45 days.\7\ In aggregate,
this will ensure that the FDIC ultimately collects the correct amount,
equal to losses attributable to the systemic risk exception.
---------------------------------------------------------------------------
\7\ In the event that the FDIC provides an offset to regular
quarterly deposit insurance assessments prior to the termination of
the receiverships, and loss estimates later increase relative to
amounts collected, the FDIC will collect the remaining amount needed
to fully recover losses through the one-time final shortfall special
assessment.
---------------------------------------------------------------------------
D. Mergers, Consolidations, and Terminations of Deposit Insurance
Offsets applied following a merger or consolidation will be
provided to a surviving or resulting IDI. Under the interim final rule,
any offset that would have been applied to any bank with an insured
status that is terminated after the effective date of this interim
final rule or prior to the application of any offset, and for which the
deposit liabilities were not assumed by another IDI, will not occur.
IV. Accounting Treatment
Each bank should account for the special assessment in accordance
with U.S. generally accepted accounting principles (GAAP). In
accordance with Financial Accounting Standards Board Accounting
Standards Codification Topic 450, Contingencies (FASB ASC Topic 450),
an estimated loss from a loss contingency shall be accrued by a charge
to income if information indicates that it is probable that a liability
has been incurred and the amount of loss is reasonably estimable.\8\
Therefore, a bank will recognize in the Call Report and other financial
statements the accrual of a liability and estimated loss (i.e.,
expense) from a loss contingency for the special assessment when the
bank determines that the conditions for accrual under GAAP have been
met. In addition, the General Instructions to the Call Report provide
guidance on ASC Topic 855, Subsequent Events, which may be
applicable.\9\
---------------------------------------------------------------------------
\8\ FASB ASC paragraph 450-20-25-2.
\9\ See General Instructions to the Call Report, available at:
https://www.fdic.gov/bank-financial-reports/ffiec-reports-condition-and-income-instructions-ffiec-031-and-041-report-2.
---------------------------------------------------------------------------
If a bank had previously accrued its best estimate of the liability
for the special assessment and the related expense, a bank should
adjust its previous accrual based on subsequent notifications from the
FDIC relating to changes in the total special assessment in accordance
with FASB ASC Subtopic 450-20.
Similarly, each bank should account for any shortfall special
assessment in accordance with FASB ASC Topic 450 when the conditions
for accrual under GAAP have been met.
V. Expected Effects
To estimate the economic effects of the interim final rule, this
analysis considers all relevant regulations applicable to FDIC-insured
institutions,
[[Page 59372]]
as well as information on the financial condition of FDIC-insured
institutions as of the quarter ending September 30, 2025, as the
baseline to which the effects of the proposed rule are estimated. As of
the quarter ending September 30, 2025, the FDIC-insured 4,388
depository institutions.\10\ The special assessment rule applies to
banking organizations that reported estimated uninsured deposits in
excess of $5 billion as of the quarter ending December 31, 2022. The
special assessment rule identified 114 banking organizations subject to
the special assessment, and 110 banking organizations remain subject to
the special assessment as of the quarter ending September 30, 2025.\11\
---------------------------------------------------------------------------
\10\ FDIC Call Report and FFIEC 002 Data, September 30, 2025.
\11\ The decline in the number of banking organizations subject
to the special assessment between enactment and September 30, 2025,
is due to bank mergers.
---------------------------------------------------------------------------
The interim final rule will benefit IDIs subject to the special
assessment by reducing the estimated overcollection in the eighth
collection quarter by $246 million. These funds are a transfer in the
context of cost-benefit analysis.\12\ To ensure the FDIC recovers
approximately the full amount of estimated losses as of September 30,
2025, while minimizing amounts collected in excess of the estimated
losses, the interim final rule will reduce the rate at which the
special assessment will be collected in the eighth collection quarter
from 3.36 basis points to 2.97 basis points. Under the baseline,
affected IDIs will pay $2.1 billion scheduled to be assessed in the
eighth quarterly collection. Under the interim final rule, affected
IDIs will only pay $1.9 billion in the eight quarterly collection. The
quarterly collection amount is projected to be $246 million lower,
which results in quarterly savings of 11.6 percent for banking
organizations subject to the special assessment.\13\
---------------------------------------------------------------------------
\12\ Circular No. A-94, Guidelines and Discount Rates for
Benefit-Cost Analysis of Federal Programs, Appendix A, October 29,
1992 (Reinstated April 8, 2025).
\13\ The difference between the $250 million estimated
overcollection and the $246 million reduction in the eighth
quarterly collection is the result of rounding when calculating the
collection amount, using a special assessment rate in basis points
out to two significant digits, when considering estimated losses.
---------------------------------------------------------------------------
The interim final rule could also benefit IDIs subject to the
special assessment by providing an offset to regular quarterly deposit
insurance assessments. If the special assessment amount collected
exceeds estimated losses following the resolution of pending litigation
between the FDIC and SVBFT, the FDIC will apply an offset to regular
deposit insurance assessments. Any such offset will be applied to
quarterly assessments beginning the quarter after the resolution of the
litigation. If the amount collected exceeds losses upon termination of
the receiverships, the FDIC will also apply an offset to regular
deposit insurance assessments.
Any such assessment offset would increase retained income for
affected IDIs. Affected IDIs could employ increased retained income by
passing it on to equity holders, retaining it, or lending those funds
to customers. As mentioned previously, estimated losses remain
uncertain and the amount of actual losses incurred will be determined
when the FDIC terminates the receiverships. Therefore, based on
estimated losses as of September 30, 2025, the projected collection
amount through the eighth quarterly collection, and continued
uncertainty in estimated losses, the FDIC is not estimating an amount
for any assessment offset.
Therefore, the FDIC estimates the interim final rule will convey
benefits to IDIs subject to the special assessment through prospective
returns on the $246 million in funds they will retain from the reduced
eighth quarterly collection amount. The FDIC does not have the
information necessary to estimate how IDIs will utilize those funds. If
the funds are invested at the effective federal funds rate of 3.88
percent, the affected IDIs will earn annual benefits of $9.53
million.\14\ If the IDIs instead invest the funds in banking assets
with a yield of 5.56 percent (the annualized yield on earning assets
for the banking industry through September 30, 2025), the annual
benefits will be $13.66 million.\15\ Therefore, the FDIC estimates the
economic effect of this interim final rule to be $9.53 million or
$13.66 million annually.
---------------------------------------------------------------------------
\14\ The effective Federal funds rate was 3.88 percent as of
November 25, 2025. https://www.newyorkfed.org/markets/reference-rates/effr. $252 million * 3.88 percent = $9.78 million.
\15\ Annualized yield on earning assets for the banking industry
through the first three quarters of 2025 was 5.56 percent. FDIC
Quarterly Banking Profile, Third Quarter 2025. https://www.fdic.gov/quarterly-banking-profile/quarterly-banking-profile-third-quarter-2025-pdf.pdf#page=1. $252 million * 5.56 percent = $14.01 million.
---------------------------------------------------------------------------
VI. Request for Comment
The FDIC invites comments on all aspects of the interim final rule.
In particular, the FDIC requests comment on the following:
Question 1: Are there alternative methodologies or timing for
applying offsets or collecting the remaining amount of the estimated
losses attributable to the protection of uninsured depositors pursuant
to the systemic risk determination the FDIC should consider and why?
Question 2: Are there policy or accounting considerations regarding
the special assessment collection or the application of an offset to
regular quarterly deposit insurance assessments that are relevant, but
not discussed in the interim final rule?
Question 3: The FDIC invites comments on expected effects. In
particular, are there effects of the interim final rule that the FDIC
did not consider?
VII. Administrative Law Matters
A. Administrative Procedure Act
The FDIC is issuing the interim final rule without prior notice and
the opportunity for public comment and the delayed effective date
ordinarily prescribed by the Administrative Procedure Act (APA).\16\
Pursuant to section 553(b)(B) of the APA, general notice and the
opportunity for public comment are not required with respect to a
rulemaking when an ``agency for good cause finds (and incorporates the
finding and a brief statement of reasons therefore in the rules issued)
that notice and public procedure thereon are impracticable,
unnecessary, or contrary to the public interest.'' \17\ Pursuant to
section 553(d)(1) of the APA, a rule may become effective without
waiting for the delayed effective date to elapse where the rule
``grants an exemption or relieves a restriction.'' \18\
---------------------------------------------------------------------------
\16\ 5 U.S.C. 553.
\17\ 5 U.S.C. 553(b)(B).
\18\ 5 U.S.C. 553(d)(1).
---------------------------------------------------------------------------
The eighth quarterly special assessment collection will occur in
the first quarter of 2026, and there is material benefit to the FDIC in
not delaying the collection (which would likely be necessary if going
through a full notice-and-comment rulemaking process) and to IDIs
subject to the special assessment, who benefit from having certainty
regarding the amount to be collected in the first quarter of 2026. As a
result, the FDIC finds that the public interest is best served by the
interim final rule being effective immediately upon publication in the
Federal Register and without prior notice and opportunity for public
comment.
Nevertheless, the FDIC desires to have the benefit of public
comment and invites interested parties to submit comments during a 30-
day comment period, particularly on aspects of the rule that are less
time-sensitive than the eighth collection amount. The 30-day comment
period will allow the FDIC to
[[Page 59373]]
receive comments in a timely manner, given that the interim rule will
be effective on December 19, 2025. In adopting any final regulation,
the FDIC will revise the interim final rule if appropriate in light of
the comments received.
B. Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA) requires an agency to consider
whether the rules it proposes will have a significant economic impact
on a substantial number of small entities.\19\ The RFA applies only to
rules for which an agency publishes a general notice of proposed
rulemaking pursuant to 5 U.S.C. 553(b). As discussed previously,
consistent with section 553(b)(B) of the APA, the FDIC has determined
for good cause that general notice and opportunity for public comment
is unnecessary, and therefore the FDIC is not issuing a notice of
proposed rulemaking. Accordingly, the FDIC has concluded that the RFA's
requirements relating to initial and final regulatory flexibility
analysis do not apply.
---------------------------------------------------------------------------
\19\ 5 U.S.C. 601 et seq.
---------------------------------------------------------------------------
Nevertheless, the FDIC is voluntarily presenting information in
this RFA section and seeking comment on whether, and the extent to
which, the interim final rule would affect a significant number of
small entities. The Small Business Administration (SBA) has defined
``small entities'' to include banking organizations with total assets
of less than or equal to $850 million.\20\
---------------------------------------------------------------------------
\20\ The SBA defines a small banking organization as having $850
million or less in assets, where an organization's ''assets are
determined by averaging the assets reported on its four quarterly
financial statements for the preceding year.'' See 13 CFR 121.201
(as amended by 87 FR 69118, effective December 19, 2022). In its
determination, the ''SBA counts the receipts, employees, or other
measure of size of the concern whose size is at issue and all of its
domestic and foreign affiliates.'' See 13 CFR 121.103. Following
these regulations, the FDIC uses an insured depository institution's
affiliated and acquired assets, averaged over the preceding four
quarters, to determine whether the insured depository institution is
''small'' for the purposes of RFA.
---------------------------------------------------------------------------
The FDIC insures 4,430 institutions as of June 30, 2025, of which
3,092 are small entities.\21\ The special assessment is paid by IDIs
that are part of banking organizations that reported more than $5
billion in uninsured deposits for the reporting period that ended
December 31, 2022. Given that no small entity has reported more than $5
billion in uninsured deposits, the FDIC does not believe the interim
final rule will have a direct effect on any small entity.
---------------------------------------------------------------------------
\21\ June 30, 2025, Call Report data, the most current Call
Reports for which the FDIC can determine which insured depository
institutions are ``small'' for purposes of RFA.
---------------------------------------------------------------------------
C. Paperwork Reduction Act
The Paperwork Reduction Act of 1995 (PRA) \22\ states that no
agency may conduct or sponsor, nor is the respondent required to
respond to, an information collection unless it displays a currently
valid Office of Management and Budget (OMB) control number. The FDIC's
OMB control numbers for its assessment regulations are 3064-0057, 3064-
0151, and 3064-0179. The interim final rule does not create any new, or
revise any of these existing assessment information collections
pursuant to the PRA; consequently, no submissions in connection with
these OMB control numbers will be made to the OMB for review.
---------------------------------------------------------------------------
\22\ 44 U.S.C. 3501 through 3521.
---------------------------------------------------------------------------
D. Riegle Community Development and Regulatory Improvement Act of 1994
The Riegle Community Development and Regulatory Improvement Act of
1994 generally provides that new regulations or amendments to
regulations prescribed by a Federal banking agency that impose
additional reporting, disclosure, or other new requirements on IDIs
shall take effect on the first day of a calendar quarter that begins on
or after the date on which the regulations are published in final form,
unless the agency determines, for good cause published with the rule,
that the rule should become effective for such time.\23\ For the
reasons discussed above, the FDIC has determined that good cause exists
for the interim final rule to become effective immediately upon
publication in the Federal Register.
---------------------------------------------------------------------------
\23\ 12 U.S.C. 4802.
---------------------------------------------------------------------------
E. Plain Language
Section 722 of the Gramm-Leach-Bliley Act \24\ requires the Federal
banking agencies to use plain language in all proposed and final
rulemakings published in the Federal Register after January 1, 2000.
The FDIC has sought to present the interim final rule in a simple and
straightforward manner. The FDIC invites comments on whether the
interim final rule is clearly stated and effectively organized and how
the FDIC might make the proposal easier to understand.
---------------------------------------------------------------------------
\24\ Public Law 106-102, section 722, 113 Stat. 1338, 1471
(1999), 12 U.S.C. 4809.
---------------------------------------------------------------------------
F. Congressional Review Act
For purposes of the Congressional Review Act, the OMB makes a
determination as to whether a final rule constitutes a ``major''
rule.\25\ If a rule is deemed a ``major rule'' by the OMB, the
Congressional Review Act generally provides that the rule may not take
effect until at least 60 days following its publication.\26\
---------------------------------------------------------------------------
\25\ 5 U.S.C. 801 et seq.
\26\ 5 U.S.C. 801(a)(3).
---------------------------------------------------------------------------
The Congressional Review Act defines a ``major rule'' as any rule
that the Administrator of the Office of Information and Regulatory
Affairs of the OMB finds has resulted in or is likely to result in (1)
an annual effect on the economy of $100,000,000 or more; (2) a major
increase in costs or prices for consumers, individual industries,
Federal, State, or local government agencies or geographic regions; or
(3) significant adverse effects on competition, employment, investment,
productivity, innovation, or on the ability of United States-based
enterprises to compete with foreign-based enterprises in domestic and
export markets.\27\
---------------------------------------------------------------------------
\27\ 5 U.S.C. 804(2).
---------------------------------------------------------------------------
The OMB has determined that the interim final rule is not a major
rule for purposes of the Congressional Review Act. The FDIC will submit
the rule and other appropriate reports to Congress and the Government
Accountability Office for review.
List of Subjects in 12 CFR Part 327
Bank deposit insurance, Banks, Banking, Savings associations.
Authority and Issuance
For the reasons stated in the preamble, the Federal Deposit
Insurance Corporation amends 12 CFR part 327 as follows:
PART 327--ASSESSMENTS
0
1. The authority citation for part 327 continues to read as follows:
Authority: 12 U.S.C. 1813, 1815, 1817-19, 1821, 1823.
0
2. Revise and republish Sec. 327.13 to read as follows:
Sec. 327.13 Special assessment pursuant to March 12, 2023, systemic
risk determination.
(a) Special assessment. A special assessment shall be imposed on
each insured depository institution to recover losses to the Deposit
Insurance Fund, as described in paragraph (b) of this section,
resulting from the March 12, 2023, systemic risk determination pursuant
to 12 U.S.C. 1823(c)(4)(G). The special assessment shall be collected
from each insured depository institution on a quarterly basis as
described in this section during the initial special assessment period
as defined in paragraph (i) of this section and, if necessary, on a
one-time basis as
[[Page 59374]]
described in paragraph (l) of this section.
(b) Losses to the Deposit Insurance Fund. As used in this section,
``losses to the Deposit Insurance Fund'' refers to losses incurred by
the Deposit Insurance Fund resulting from actions taken by the FDIC
under the March 12, 2023, systemic risk determination, as may be
revised from time to time.
(c) Calculation of quarterly special assessment amount. An insured
depository institution's special assessment for each quarter during the
initial special assessment period shall be calculated by multiplying
the special assessment rate defined in paragraph (i)(2) of this section
by the institution's special assessment base as defined in paragraph
(i)(3) of this section.
(d) Invoicing of special assessment. For each assessment period in
which the special assessment is imposed, the FDIC shall advise each
insured depository institution of the amount and calculation of any
special assessment payment due in a form that notifies the institution
of the special assessment base and special assessment rate exclusive of
any other assessments imposed under this part. The FDIC shall also
advise each insured depository institution subject to the special
assessment of any revisions, if any, to losses to the Deposit Insurance
Fund as defined in paragraph (b) of this section. This information
shall be provided at the same time as the institution's quarterly
certified statement invoice under Sec. 327.2 for the assessment period
in which the special assessment was imposed.
(e) Payment of quarterly special assessment amount. Each insured
depository institution shall pay to the Corporation any special
assessment imposed under this section in compliance with and subject to
the provisions of Sec. Sec. 327.3, 327.6, and 327.7. The date for any
special assessment payment shall be the date provided in Sec.
327.3(b)(2) for the institution's quarterly certified statement invoice
for the calendar quarter in which the special assessment was imposed.
(f) Uninsured deposits. For purposes of this section, the term
``uninsured deposits'' means an institution's estimated uninsured
deposits as reported in Memoranda Item 2 on Schedule RC-O, Other Data
For Deposit Insurance Assessments in the Consolidated Reports of
Condition and Income (Call Report) or Report of Assets and Liabilities
of U.S. Branches and Agencies of Foreign Banks (FFIEC 002) for the
quarter ended December 31, 2022, reported as of the later of:
(1) November 2, 2023, adjusted for mergers prior to March 12, 2023;
or
(2) The date of the institution's most recent amendment to its Call
Report or FFIEC 002 for the quarter ended December 31, 2022, if such
amendment arises from, or is confirmed through, the FDIC's Assessment
Reporting Review. Institutions with less than $1 billion in total
assets as of June 30, 2021, were not required to report such items;
therefore, for purposes of calculating the special assessment or a
shortfall special assessment under this section, the amount of
uninsured deposits for such institutions as of December 31, 2022, is
zero.
(g) Five billion dollar deduction from the special assessment
base--institution's portion. For purposes of this section, an
institution's portion of the $5 billion deduction shall equal the ratio
of the institution's uninsured deposits to the sum of the institution's
uninsured deposits and the uninsured deposits of all of the
institution's affiliated insured depository institutions, multiplied by
$5 billion.
(h) Affiliates. For the purposes of this section, an affiliated
insured depository institution is an insured depository institution
that meets the definition of ``affiliate'' in section 3 of the FDI Act,
12 U.S.C. 1813(w)(6).
(i) Special assessment during initial special assessment period--
(1) Initial special assessment period. The initial special assessment
period shall begin with the first quarterly assessment period of 2024
and end the last quarterly assessment period of 2025.
(2) Special assessment rate during initial special assessment
period. The special assessment rate during the first seven quarters of
the initial special assessment period is 3.36 basis points on a
quarterly basis, and the rate during the last quarterly assessment
period of 2025 is 2.97 basis points.
(3) Special assessment base during initial special assessment
period. (i) The special assessment base for an insured depository
institution during the initial special assessment period that has no
affiliated insured depository institution shall equal:
(A) The institution's uninsured deposits; minus
(B) Five billion dollars; provided, however, that an institution's
assessment base cannot be negative.
(ii) The special assessment base for an insured depository
institution during the initial special assessment period that has one
or more affiliated insured depository institutions shall equal:
(A) The institution's uninsured deposits; minus
(B) The institution's portion of the $5 billion deduction;
provided, however, that an institution's special assessment base cannot
be negative.
(j) Effect of mergers, consolidations, and other terminations of
insurance on the special assessment--(1) Final quarterly certified
invoice for acquired institution. The surviving or resulting insured
depository institution in a merger or consolidation shall be liable for
any unpaid special assessment or one-time final shortfall special
assessment outstanding at the time of the merger or consolidation on
the part of the institution that is not the resulting or surviving
institution consistent with Sec. 327.6.
(2) Special assessment for quarter in which the merger or
consolidation occurs and subsequent quarters. If an insured depository
institution is the surviving or resulting institution in a merger or
consolidation or acquires all or substantially all of the assets, or
assumes all or substantially all of the deposit liabilities, of an
insured depository institution, then the surviving or resulting insured
depository institution or the insured depository institution that
acquires such assets or assumes such deposit liabilities, shall be
liable for the acquired institutions' special assessment from the
quarter of the acquisition through the remainder of the initial special
assessment period, including any one-time final shortfall special
assessment.
(3) Other termination. When the insured status of an institution is
terminated, and the deposit liabilities of such institution are not
assumed by another insured depository institution, the special
assessment and any shortfall special assessment shall be paid
consistent with Sec. 327.6(c). When an insured depository institution
voluntarily terminates its deposit insurance, the institution shall be
liable for any unpaid special assessment or one-time final shortfall
special assessment outstanding at the time of the termination and all
future special assessments, if any, the institution would have been
invoiced through the remainder of the initial special assessment
period, as applicable, including any one-time final shortfall special
assessment for which the institution has been given notice before
termination. Any special assessment or one-time final shortfall special
assessment liabilities will be included, in full, on the final
quarterly assessment invoice following voluntary termination.
(k) Corrective reporting amendments--(1) Recalculation of
[[Page 59375]]
quarterly special assessment amount. Corrective amendments to an
institution's uninsured deposits that arise from, or are confirmed
through, the FDIC's Assessment Reporting Review will apply
retroactively beginning the first quarterly collection period of the
initial special assessment period. An institution's special assessment
base and portion of the $5 billion deduction, along with the portion of
the $5 billion deduction allocated to the institution's affiliated
insured depository institutions, will be recalculated for prior
collection quarters. Any overpayment or underpayment in prior
collection quarters as a result of the recalculation will be invoiced
as described in paragraph (k)(2) of this section.
(2) Invoicing overpayment and underpayment. Any underpayment of the
special assessment by an institution as the result of corrective
amendments to uninsured deposits will be included, in full and with
interest, on the invoice for the quarter following the date a
corrective amendment is filed. If a corrective amendment results in an
overpayment of the special assessment, the institution will be credited
the overpayment amount, with interest, and such amount will be applied
to the institution's subsequent special assessment invoices beginning
in the quarter following the date of the amendment. If any excess
credit amount remains after the end of the initial special assessment
period, the excess credit amount shall be refunded to the institution.
Payment and collection of interest on amounts resulting from
overpayment and underpayment of the special assessment shall be
consistent with Sec. 327.7.
(l) One-time final shortfall special assessment. If the aggregate
amount of the special assessment collected does not meet or exceed the
losses to the Deposit Insurance Fund, as calculated after the
receiverships resulting from the March 12, 2023, systemic risk
determination are terminated, insured depository institutions shall pay
a one-time final shortfall special assessment in accordance with this
paragraph (l).
(1) Notification of one-time final shortfall special assessment.
The FDIC shall notify each insured depository institution of the amount
of such institution's one-time final shortfall special assessment no
later than 45 days before such shortfall assessment is due.
(2) Aggregate one-time final shortfall special assessment amount.
The aggregate amount of the one-time final shortfall special assessment
imposed across all insured depository institutions shall equal the
losses to the Deposit Insurance Fund, as of termination of the
receiverships to which the March 12, 2023, systemic risk determination
applied, minus the aggregate amount of the special assessment collected
under this section less any amount applied as an offset, as described
in paragraph (p)(1)(i) of this section, including the net amount of
interest paid or received as a result of overpayments and
underpayments.
(3) One-time final shortfall special assessment rate. The final
shortfall special assessment rate shall be the aggregate final
shortfall special assessment amount divided by the total amount of
uninsured deposits, as described in paragraph (f) of this section,
adjusted for mergers, consolidation, and termination of insurance as of
the assessment period preceding the final shortfall special assessment
period, minus the $5 billion deduction for each insured depository
institution or each institution's portion of the $5 billion deduction.
(4) One-time final shortfall special assessment base. (i) The one-
time final shortfall special assessment base for an insured depository
institution that has no affiliated insured depository institution shall
equal:
(A) The institution's uninsured deposits; minus
(B) $5 billion; provided, however, that an institution's one-time
final shortfall special assessment base cannot be negative.
(ii) The one-time final shortfall special assessment base for an
insured depository institution that has one or more affiliated insured
depository institutions shall equal:
(A) The institution's uninsured deposits; minus
(B) The institution's portion of the $5 billion deduction, adjusted
for termination of insurance as of the assessment period preceding the
final shortfall assessment period; provided, however, that an
institution's one-time final shortfall special assessment base cannot
be negative.
(5) Calculation of one-time final shortfall special assessment. An
insured depository institution's final shortfall special assessment
shall be calculated by multiplying the final shortfall special
assessment rate by the institution's one-time final shortfall special
assessment base.
(6) One-time final special assessment. The one-time final shortfall
special assessment shall be collected on a one-time quarterly basis
after losses to the Deposit Insurance Fund are determined after
termination of the receiverships to which the March 12, 2023, systemic
risk determination applied.
(7) Payment, invoicing, and mergers. Paragraphs (d), (e), and (j)
of this section are applicable to the one-time shortfall special
assessment.
(m) Request for revisions. An insured depository institution may
submit a written request for revision of the computation of any special
assessment or shortfall special assessment pursuant to this part
consistent with Sec. 327.3(f).
(n) Special assessment collection in excess of losses. Any special
assessment collected under this section that exceeds the losses to the
Deposit Insurance Fund, as of termination of the receiverships to which
the March 12, 2023, systemic risk determination applied, shall be
placed in the Deposit Insurance Fund.
(o) Rule of construction. Nothing in this section shall prevent the
FDIC from imposing additional special assessments as required to
recover current or future losses to the Deposit Insurance Fund
resulting from any systemic risk determination under 12 U.S.C.
1823(c)(4)(G).
(p) Assessment offsets. The FDIC will provide offsets, in
accordance with this paragraph (p), to the quarterly risk-based
assessments calculated under Sec. 327.3(b)(1), of institutions that
have paid the special assessment.
(1) Timing. Assessment offsets will be provided if the aggregate
amount of the special assessment collected exceeds the losses to the
Deposit Insurance Fund as of:
(i) The final unappealable judgment or settlement of the litigation
between the FDIC and SVB Financial Trust (Case No. 5:24-cv-01321-BLF,
U.S. District Court for the Northern District of California); and
(ii) The termination of the receiverships to which the March 12,
2023, systemic risk determination applied.
(2) Application of offsets. Assessment offsets will be included on
the quarterly certified statement invoice(s) for the assessment period
following the timing provisions in paragraphs (p)(1)(i) and (ii) of
this section, if applicable.
(3) Calculation. To determine an institution's offset amount, the
FDIC will calculate the percentage that an insured depository
institution contributed towards the total amount of the special
assessment collected and then multiply that percentage by the amount of
special assessment collected in excess of losses to the Deposit
Insurance Fund at the time of the calculation.
(4) Mergers, consolidations, and other terminations of insurance.
An offset under this paragraph (p) shall be provided to the surviving
or resulting
[[Page 59376]]
insured depository institution that acquired, merged with, or acquired
all or substantially all of the assets, or assumes all or substantially
all of the deposit liabilities, of an insured depository that paid the
special assessment. No offset, credit, or refund will be provided to an
institution with an insured status that has been terminated, and for
which the deposit liabilities of such institution were not assumed by
another insured depository institution.
Federal Deposit Insurance Corporation.
By order of the Board of Directors.
Dated at Washington, DC, December 16, 2025.
Debra A. Decker,
Executive Secretary.
[FR Doc. 2025-23425 Filed 12-18-25; 8:45 am]
BILLING CODE 6714-01-P