Financial Markets and Institutions:
Responses to Questions Relating to H.R. 3717, Federal Deposit Insurance Reform Act of 2002
GAO-02-646R: Published: Apr 16, 2002. Publicly Released: Apr 16, 2002.
The Federal Deposit Insurance Reform Act of 2002 would change the definition of the reserve ratio for the deposit insurance fund, and provide the Federal Deposit Insurance Corporation (FDIC) with the flexibility to set the fund's designated reserve ratio within a range. Current law requires FDIC to maintain the deposit insurance fund balances at a designated reserve ratio of at least 1.25 percent of estimated insurance deposits. If the reserve ratio falls below that level, FDIC's Board of Directors must set semiannual assessment rates that are sufficient to increase the reserve ratio to the designated reserve ratio within a year, or in accordance with a recapitalization schedule of 15 years or less.