Banks Face Bigger Deposit Insurance Payments From FDIC
- Changes announced Tuesday meant to boost protection fund
- Bank lobby groups say move could hurt lending, economy
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The Federal Deposit Insurance Corp., the US agency that protects savings accounts, is requiring lenders to increase how much they contribute to a fund that protects consumers from bank failures despite fierce industry objections to the move.
American banks will have to start paying bigger deposit insurance assessment rates starting in the first quarter of 2023 under the rule change approved on Tuesday. The FDIC said the two-basis-point increase was meant to boost the industry’s overall ratio of protection to insured deposits, a measure that fell as Americans saved more during the Covid-19 pandemic.