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
2026-17823, Unsafe or Unsound Practices, Matters Requiring Attention
The OCC and FDIC are rolling out a new rule starting November 2, 2026, that clearly defines what counts as 'unsafe or unsound practices' for banks and savings institutions. This update helps banks focus on big financial risks instead of small paperwork issues, making supervision smarter and fairer. Banks will need to adjust how they handle these risks, which could affect their operations and how they communicate with regulators.
2026-08298, Regulatory Capital Rule: Community Bank Leverage Ratio Framework
Starting July 1, 2026, community banks get a break! The minimum leverage ratio drops from 9% to 8%, making it easier for smaller banks to meet rules. Plus, banks can now stay in this easier framework longer—up to four straight quarters instead of two—helping them manage their money better without rushing.
2026-05960, Regulatory Capital Rules: Regulatory Capital and Standardized Approach for Risk-Weighted Assets
Big banks and community banks are getting new rules to better measure the risks in their loans and investments. The changes update how banks count certain assets and income when figuring out their safety net money, called regulatory capital. These updates aim to make banks safer and smarter with their money, with some rules kicking in soon and affecting how much capital banks need to hold.
2025-21625, Regulatory Capital Rule: Revisions to the Community Bank Leverage Ratio Framework
The government wants to make it easier for small banks to stay in a special low-risk capital program by lowering the required leverage ratio from 9% to 8%. They’re also giving banks more time—up to four quarters instead of two—to fix any issues without losing their spot. Banks and bank holding companies should weigh in by January 30, 2026, as these changes could save them money and reduce red tape.
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.
2026-20077, Update to Notice of Financial Institutions for Which the Federal Deposit Insurance Corporation Has Been Appointed Either Receiver, Liquidator, or Manager
The FDIC has officially taken over Nano Banc in Irvine, CA, as of September 25, 2026, stepping in to manage its closure and protect depositors. This update lets everyone know which bank is now in FDIC’s hands, ensuring transparency and smooth handling of the situation. If you’re connected to Nano Banc, keep an eye on FDIC’s website for the latest info and next steps.
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.