U.S. banking regulators approved a plan on Nov. 9 to change how banks pay for deposit insurance, writes the Dow Jones newswires.

The Dodd-Frank financial overhaul law directs the FDIC to change its current formula. The FDIC currently charges banks quarterly fees based on the total domestic deposits. The FDIC is proposing to base the fees on a measure of banks' assets, which would favor smaller banks.

The plan calls for banks with $10 billion or more in assets to pay 80 percent of the total insurance funds fees, up from 70 percent. Banks with more than $100 billion in assets would shoulder most of that increase.

Recommended For You

Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader

Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
  • Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
NOT FOR REPRINT

© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more inforrmation visit Asset & Logo Licensing.