On June 16, the Federal Deposit Insurance Corporation (FDIC) released a proposal to amend 12 CFR part 327 to refine the deposit insurance assessment system for small banks that have been federally insured for at least five years. In general, a “small bank” is one with less than $10 billion in total assets. The FDIC proposed that a final rule would go into effect the quarter after a final rule is adopted; by their terms, however, the proposed amendments would not become operative until the quarter after the Deposit Insurance Fund (DIF) reserve ratio reaches 1.15 percent, which is not expected to occur until 2016. The proposal, among other things, changes the factors that are relevant to a determination of an institution’s total assessment rate. 
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