Bank Failures Aren’t Stopping Regulators From Hitting Deposit Insurance Target
- Deposit Insurance Fund reserve ratio may reach 1.35% by 2024
- Regulator planning special assessment on banks after SVB
A Signature Bank branch in Staten Island, New York.
Photographer: Angus Mordant/BloombergThis article is for subscribers only.
The recent failures of Silicon Valley Bank and Signature Bank won’t prevent US regulators from bolstering a key measure of deposit insurance, according to the Federal Deposit Insurance Corp.
The measure of protection to insured deposits known as the Deposit Insurance Fund reserve ratio could return to the required 1.35% as soon as next year, the FDIC projected on Tuesday. The ratio, which is the fund balance compared with the aggregate value of overall insured deposits, fell below that number in June 2020 due to the Covid-19 pandemic.