The FDIC proposes lower deposit insurance assessments and a $30 billion small bank line
An FDIC proposal would cut initial base assessment rates by 2 basis points for small banks, move the small and large bank line from $10 billion to $30 billion, and index it to inflation. Comments are due 31 August 2026.
Every insured bank pays deposit insurance assessments, and for a community bank the bill is a real line in the budget. On 30 June 2026 the FDIC proposed changes to how those assessments are priced (91 FR 39794, amending 12 CFR part 327). Comments must be received no later than 31 August 2026.
Lower rates
The proposal would "decrease initial base deposit insurance assessment rate schedules by 2 basis points for small institutions." Large and highly complex institutions would get a 1 basis point decrease. Large and highly complex institutions that elect to take part could also get a downward resolution readiness adjustment of up to 1 basis point.
Using data as of 31 December 2025, the FDIC says the rate reduction "is estimated to result in a decline in annual assessments of approximately $917 million," or 7.5 percent of total annual assessments.
The rate cuts would begin "upon the effective date of any final rule." The proposal doesn't name a date.
A higher line between small and large
The FDIC prices small and large banks differently, and the line between them is $10 billion in assets. The proposal would "update the $10 billion asset threshold in the definitions of small and large institutions to $30 billion." After that, the threshold would be adjusted "every four years to reflect inflation," using the cumulative percent change in the non-seasonally adjusted CPI-W.
The FDIC estimates about 76 institutions with assets between $10 billion and $30 billion would move into the small bank definition, and "almost all would pay less in assessments." The threshold change alone would mean "an approximate net decrease of $129 million in annual assessments."
The proposal would also remove the option for a small institution with "assets between $5 billion and $10 billion" to ask to be priced as a large institution.
Where the fund stands
The FDIC's long-term goal is a 2 percent designated reserve ratio. It reports that "The reserve ratio was 1.43 percent as of March 31, 2026."
What it could mean
For a bank under $10 billion, the 2 basis point cut is the whole story, and it's a straightforward saving. A rough way to size it: 2 basis points on a $500 million assessment base is $100,000 a year. Your actual assessment base and rate depend on your own figures, but that order of magnitude is worth knowing when you're setting next year's budget. We wouldn't book it yet. The cut only starts once a final rule takes effect, and the FDIC hasn't said when that will be.
The threshold change mostly helps banks in the $10 billion to $30 billion range, which leave large bank pricing. For a $4 billion bank planning to grow, though, it has a quieter benefit. Under the current rule, crossing $10 billion brings a change in how the FDIC prices your deposit insurance. If the line moves to $30 billion and is indexed, that cliff sits much further away. This proposal only deals with assessment pricing, though, so it doesn't make $10 billion stop mattering elsewhere.
We'd also note the choice being taken away. A small bank between $5 billion and $10 billion can currently ask for large bank pricing, presumably when that works out cheaper. The FDIC proposes to remove that option. For most banks it won't matter, but if yours has elected it, run the numbers under the proposed small bank schedule before 31 August and comment if you come out worse.
Our guess is that the cut survives into a final rule largely as proposed. Lower rates for small banks are an easy position for the FDIC to defend.