A proposed Federal Deposit Insurance Corp. rule on deposit insurance assessments should be mostly positive for Kansas banks, industry officials said.
This week the FDIC board of directors approved a proposal that would allow the agency to charge banks an assessment based on assets rather than domestic deposits.
The rule change, which would be effective April 1 and is called for in the Dodd-Frank Wall Street Reform and Consumer Protection Act, is expected to create a larger pool of money for the deposit insurance fund. And the FDIC is proposing to lower assessment rates because of the larger pool from which to draw assessments.
"While the change in the assessment base affects the amounts paid by individual institutions, this proposed rule is designed to keep the total amount collected from the industry very close to unchanged," Sheila Bair, FDIC chairman, said in a release about the rule.
Chuck Stones, president of the Kansas Bankers Association, said the new rule "should be... a positive for community banks."
Chuck Marshall, a bank consultant for Kennedy and Coe, said he thinks it could be a positive development for Kansas banks, too, but likely only for those that aren't under some kind of extra regulatory scrutiny.
"I think the FDIC is trying to find a fair way to reward banks for attracting local deposits and maintaining a healthy risk profile," he said. "I think that's really what that's about."
Marshall added that the assessments continue to be a "stressor to bank earnings."
"It's like an additional tax that's not a tax," he said. "It's why banks are careful in this recovery process."