The Federal Deposit Insurance Corporation (FDIC) has issued a final rule to adjust the way deposit insurance assessments for large banks are calculated. This change is aimed at preventing the temporary double counting of certain credit loss amounts related to the Current Expected Credit Losses (CECL) methodology in these assessments. By doing so, the rule ensures that big banks are charged fairly and accurately for their deposit insurance. The final rule will take effect on April 1, 2021, and is not expected to affect small banks or change regulatory capital.
Simple Explanation
The FDIC is making a new rule to help big banks pay exactly the right amount for their deposit insurance, which is like a safety net for people's money in the bank. They are fixing how they count some numbers so the banks don't have to pay extra by mistake.