ACB: Press Releases

Contact:	Robert Schmermund (202) 857-3104 Jim Eberle (202) 857-3145	Jim Eberle (202) 857-3145 (work) (703) 893-2593 (home) [email protected]	For Immediate Release April 17, 2002 #02-24
E-mail: [email protected]

ACB ON DEPOSIT INSURANCE BILL

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Statement by Diane M. Casey, president and CEO, America’s Community Bankers, on the House Financial Services Committee reporting H.R. 3717, the deposit insurance reform bill, today:

America’s Community Bankers is pleased that the committee reported a deposit insurance bill that contains so many needed reforms. We are particularly pleased that the bill would merge the insurance funds and eliminate the 23 basis point “cliff.” Further, ACB successfully defended a top priority when we turned back efforts of the securities industry to gut the “free-rider” provision. Importantly, the bill gives the FDIC the authority to impose a special assessment on the fast-growing “free riders” that are diluting the insurance fund’s reserves.

We strongly support the committee’s adoption of a key provision limiting the assessment rate for institutions in the lowest-risk category to 1 basis point whenever the reserve ratio is above 1.15 percent. We continue to oppose the FDIC imposing premiums on well-capitalized, well-managed banks when the reserves exceed the designated reserve ratio.

ACB also strongly supports the bill’s increase in coverage of retirement accounts and believes that indexing of deposit insurance for inflation is appropriate to avoid dilution of coverage levels.

America’s Community Bankers is the national trade association committed to shaping the future of banking by being the innovative industry leader strengthening the competitive position of community banks. To learn more about ACB, visit www.AmericasCommunityBankers.com.

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