Skip to content


Amendment fixes FDIC assessment system that disproportionately burdens Main Street banks

(WASHINGTON, D.C.) - Today, an amendment to protect community banks, which was cosponsored by U.S. Senator Jeanne Shaheen, was successfully adopted to be included in the Wall Street Reform legislation currently before the Senate.  The amendment would ensure that community banks are not forced to pay more than their fair share for federal bank insurance.  It passed by a vote of 98-0.

"Community banks should not have to pay for Wall Street's reckless conduct," said Shaheen. "Community bank lending is the lifeblood of New Hampshire's economy. Every dollar community banks have to pay for Wall Street's mistakes is a dollar that could be going to extend credit to small businesses and home and consumer loans to families."

The Federal Deposit Insurance Corporation (FDIC) insures bank deposits up to $250,000. As the recession has forced hundreds of banks to close their doors, the FDIC's resources have become strained.  To ensure continued federal insurance, banks are being slammed with emergency assessments by the FDIC to make up for this shortfall. Small community banks are being disproportionately affected by these costs.  Currently, community banks pay 30 percent of all FDIC premiums while holding only 20 percent of the nation's banking assets.

The amendment cosponsored by Shaheen and passed today would direct the FDIC to implement risk-based assessments when deciding how much a bank should pay in premiums, so that larger and riskier banks pay an appropriate share.  The Independent Community Bankers of America estimate that implementation of this amendment would save New Hampshire community banks hundreds of thousands of dollars.

This amendment is now part of the larger Wall Street reform legislation currently being debated in the Senate.  A vote on the final Wall Street reform bill, as amended, is expected as soon as next week.