How has the minimum reserve ratio changed?
Section 334 of the Act makes a conforming amendment to the definition of “minimum reserve ratio” to reflect the new asset-based assessment base. The Act increases the minimum reserve ratio that is to be established by the FDIC Board of Directors from 1.15% of estimated deposits to 1.35% or “a comparable percentage” of the asset-based assessment base described above. The FDIC must reach the greater reserve ratio for the Deposit Insurance Fund by September 20, 2020. Notably, Section 334 goes on to require the FDIC to “offset the effect” of the greater ratio on institutions with consolidated assets of less than $10 billion. Although the Act’s language is not completely clear, the intent is to require larger institutions to pay the added premiums to attain the higher ratio, reducing the impact on community banks. How did the Act change insurance coverage limits and coverage for commercial accounts? Section 335 of the Act permanently increased the standard maximum deposit insurance limit fr
