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Contact:
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Robert Schmermund
(202) 857-3104
Jim Eberle
(202) 857-3145
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Jim Eberle
(202) 857-3145 (work)
(703) 893-2593 (home)
[email protected]
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For Immediate Release
September 12, 2002
#02-42 |
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E-mail:
[email protected] |
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ACB CITES CONTINUED THREAT OF BIF PREMIUMS
Statement by Diane M. Casey, president and CEO, America’s Community Bankers, on the Bank Insurance Fund reserve ratio:
The Bank Insurance Fund reserve ratio at 1.26 percent was barely above the minimum, providing very little cushion between now and when the FDIC decides whether to impose premiums on healthy banks beginning January 1. The threat of premiums in 2003 for BIF-insured institutions still exists.
As the FDIC said in describing the situation, even a small fluctuation in deposit inflow could send the reserve ratio below 1.25 percent again. It would only take a shift by securities firms of about $20 billion into insured deposits for that to happen.
The fact remains that Congress needs to pass deposit insurance reform legislation as quickly as possible to merge the insurance funds, give the FDIC the flexibility to manage the merged fund and address the free-rider problem.
America’s Community Bankers is the national trade association committed to shaping the future of
banking by being the innovative industry leader strengthening the competitive position of
community banks. To learn more about ACB, visit
www.AmericasCommunityBankers.com.
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