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.
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Key Dates
Department and Agencies
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