FDIC Plans to Raise Small Bank Threshold to $30 Billion
Published Date: 6/30/2026
Proposed Rule
Summary
The FDIC is proposing to update the rules that decide how much banks pay for deposit insurance. They want to raise the size cutoff for small banks from $10 billion to $30 billion and adjust it every four years for inflation. Plus, they’re lowering fees a bit for all banks and offering discounts to big banks that meet certain data-sharing tests. Comments are open until August 31, 2026, so banks and the public can weigh in before changes kick in.
Analyzed Economic Effects
6 provisions identified: 4 benefits, 1 costs, 1 mixed.
Small/Large Bank Threshold Raised to $30B
If your bank currently uses the FDIC "large" pricing method because it has $10 billion or more in assets, the FDIC proposes to raise that cutoff to $30 billion. The rule would reclassify institutions under $30 billion as "small" for assessment pricing, would shift an estimated 76 institutions, and the FDIC estimates an approximate $129 million net annual decrease in industry assessments based on December 31, 2025 data.
Small Banks Get Rate Cuts (1–2 bps)
The FDIC proposes to lower initial base assessment rate schedules by 2 basis points for all small institutions (including new small institutions and insured foreign branches) and by 1 basis point for large and highly complex institutions. Those reductions would apply only while the DIF reserve ratio is less than 2 percent.
Periodic Indexing of the Size Cutoff
The new $30 billion threshold would be adjusted every four years for inflation using the CPI-W (consumer price index for urban wage earners and clerical workers). Adjustments would use cumulative CPI-W through August of the adjustment year, round the result to two significant digits as appropriate, be effective for the assessment period beginning October 1, and would not be lowered in periods of deflation.
Up to 1 bp Discount for Resolution Readiness
Large and highly complex institutions could earn up to a 1 basis point downward resolution readiness adjustment (RRA): 0.5 basis points for passing voluntary virtual data room testing and 0.5 basis points for providing prescribed data access to the FDIC. The RRA is applied to initial base assessment rates before other adjustments.
Removal of Small-Bank Option to Choose Large Pricing
The FDIC proposes to remove the current option that lets certain small institutions (those with assets between $5 billion and $10 billion) request to have their assessment rates determined as a large institution. Historically, only nine such requests were received in the last ten years.
One-Time 8-Quarter Transition Election
An institution that is classified as large immediately before the final rule but reports less than $30 billion would get a one-time option to remain priced as a large institution for up to eight consecutive quarters after the rule's effective date. Banks electing this transition would generally be ineligible for the RRA unless and until they meet the proposed large-institution definition by reporting $30 billion or more for four consecutive quarters.
Personalized for You
How does this regulation affect your finances?
Personalize government policy and PRIA will tell you what this federal register document means for your household, plus every other regulation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.
Key Dates
Department and Agencies
Related Federal Register Documents
2025-21626, Regulatory Capital Rule: Modifications to the Enhanced Supplementary Leverage Ratio Standards for U.S. Global Systemically Important Bank Holding Companies and Their Subsidiary Depository Institutions; Total Loss-Absorbing Capacity and Long-Term Debt Requirements for U.S. Global Systemically Important Bank Holding Companies
Big U.S. banks that are super important to the economy are getting new rules to keep them safer and stronger. These changes tweak how much money they must keep on hand and how they handle long-term debt, helping prevent financial trouble. The new rules kick in soon and could affect how these banks manage billions in assets and debt.
2026-16454, Community Reinvestment Act Regulations
The Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC) are proposing to amend their Community Reinvestment Act rules by making certain substantive, technical, and process-oriented changes to refocus on the statutory objective of encouraging banks to meet the credit needs of their communities; to better ensure that community development grants reach the communities they are intended to benefit; to reduce unnecessary burden, particularly for community banks; and to provide greater clarity for how to obtain CRA consideration. The OCC and the FDIC are also proposing certain technical changes to their rules implementing the Community Reinvestment Act sunshine requirements of the Federal Deposit Insurance Act. In addition, the OCC is proposing similar technical changes to its Public Welfare Investments rule and its Rules, Policies, and Procedures for Corporate Activities.
2026-15995, Extensions of Credit to Insiders
The Federal Deposit Insurance Corporation (FDIC) is proposing to increase quantitative thresholds for certain extensions of credit to insiders of FDIC-supervised institutions, as restricted by the Federal Reserve Act and regulations promulgated thereunder. Specifically, the proposal would increase the thresholds for certain extensions of credit to executive officers not otherwise specifically authorized by statute from $100,000 to $400,000; and extensions of credit to insiders requiring prior approval by the board of directors from $500,000 to $2,000,000. The proposal would also establish an indexing methodology to periodically update such thresholds over time.
2026-14900, Update to Notice of Financial Institutions for Which the Federal Deposit Insurance Corporation Has Been Appointed Either Receiver, Liquidator, or Manager
The FDIC just took over Small Business Bank in Lenexa, Kansas, after it closed on July 17, 2026. This means the FDIC is now in charge of handling the bank’s affairs to protect customers and manage its assets. If you had money there, the FDIC is working to keep things safe and sorted out as quickly as possible.
2026-14589, Reporting Forms and Instructions Associated With Requirements and Standards for FDIC-Supervised Permitted Payment Stablecoin Issuers
The FDIC is rolling out new weekly and quarterly reporting forms for companies that issue permitted payment stablecoins and are supervised by the FDIC. These forms help keep things transparent and safe, and the FDIC wants your feedback by September 18, 2026. If you’re involved in stablecoins, get ready for new paperwork that keeps the money world running smoothly!
2026-13506, Agency Information Collection Activities: Proposed Collection Renewal; Comment Request
The FDIC wants to keep collecting feedback from businesses without changing the current process. They’re asking for comments by August 5, 2026, but so far, no one has spoken up. This renewal won’t cost extra or add new paperwork, just keeps things running smoothly for private companies sharing their thoughts.
Previous / Next Documents
Previous: 2026-13191, Resolution Submissions Required for Covered Insured Depository Institutions
Big banks with $50 billion or more in assets will see some rule changes on how they report their plans if they get into trouble. The FDIC wants to raise the size limit automatically, simplify what info these banks must share, and drop some testing and review steps. Comments on these changes are open until August 31, 2026, so banks and the public can weigh in before anything is final.
Next: 2026-13239, Data Reporting Requirements for Certain Event Contracts
The Commodity Futures Trading Commission is proposing new rules that change how certain event contracts must report their data. This affects markets, brokers, and clearing members who deal with fully backed event contracts, shifting them to a new reporting system. Comments on these changes are open until July 31, 2026, and the update aims to make reporting clearer without adding extra costs.