Federal Deposit Insurance Corporation Amended Restoration Plan

The Federal Deposit Insurance Act (FDI Act) requires that the FDIC’s Board of Directors (Board) adopt a restoration plan when the Deposit Insurance Fund (DIF or fund) reserve ratio falls below the minimum of 1.35 percent or is expected to within 6 months. Extraordinary growth in insured deposits during the first and second quarters of 2020 caused the DIF to decline below the statutory minimum of 1.35 percent as of June 30, 2020. On September 15, 2020, the FDIC established a Restoration Plan (Plan) to restore the DIF to at least 1.35 percent by September 30, 2028, maintaining the assessment rate schedule in place at the time.

Under the Plan, the FDIC is monitoring deposit balance trends, potential losses, and other factors that affect the reserve ratio. While insured deposit growth rates remained elevated through the first quarter of 2021, such growth decelerated for the remaining quarters of 2021 through the first quarter of 2022 and was slightly above the historical average annual growth rate. Those insured deposits that resulted from extraordinary growth in the first half of 2020 and the first quarter of 2021 as the result of actions taken by monetary and fiscal authorities, and by individuals, businesses, and financial market participants in response to the Coronavirus Disease (COVID-19) pandemic do not appear to have receded as of the first quarter of 2022.