Restoration Plan for the FDIC Deposit Insurance Fund

59306

Federal Register / Vol. 85, No. 183 / Monday, September 21, 2020 / Notices

1 The reserve ratio is calculated as the ratio of the

net worth of the Deposit Insurance Fund (fund

balance) to the value of the aggregate estimated

insured deposits at the end of a given quarter. See

12 U.S.C. 1813(y)(3).

2 12 U.S.C. 1817(b)(3)(E)(i).

3 12 U.S.C. 1817(b)(3)(E)(ii).

4 12 U.S.C. 1817(b)(3)(E)(v).

Commission has no direct involvement.

Personally identifiable information (PII)

is not being collected by, made available

to, or made accessible by the

Commission. There are no additional

impacts under the Privacy Act.

Nature and Extent of Confidentiality:

In general there is no need for

confidentiality with this collection of

information.

Needs and Uses: On June 2, 2014, the

Commission released a Report and

Order, FCC 14–50, GN Docket No. 12–

268, ‘‘Expanding the Economic and

Innovation Opportunities of Spectrum

Through Incentive Auctions.’’ This

order adopted a revision to a

Commission rule, 47 CFR 74.802(b), to

permit low power auxiliary stations

(LPAS), including wireless

microphones, to operate in the bands

allocated for TV broadcasting at revised

distances from a co-channel television’s

contour, and provided LPAS operators

to operate even closer to television

stations proved that any such operations

are coordinated with TV broadcast

stations that could be affected by the

LPAS operations.

The Commission seeks Office of

Management and Budget (OMB)

approval for an extension of the

currently approved information

collection for the coordination process

adopted in the Commission’s Report

and Order, FCC 14–50 for such co-

channel operations, in 47 CFR

74.802d(b)(2).

Federal Communications Commission.

Marlene Dortch,

Secretary.

[FR Doc. 2020–20723 Filed 9–18–20; 8:45 am]

BILLING CODE 6712–01–P

FEDERAL DEPOSIT INSURANCE

CORPORATION

Federal Deposit Insurance Corporation

Restoration Plan

AGENCY: Federal Deposit Insurance

Corporation (FDIC)

opted in the Commission’s Report

and Order, FCC 14–50 for such co-

channel operations, in 47 CFR

74.802d(b)(2).

Federal Communications Commission.

Marlene Dortch,

Secretary.

[FR Doc. 2020–20723 Filed 9–18–20; 8:45 am]

BILLING CODE 6712–01–P

FEDERAL DEPOSIT INSURANCE

CORPORATION

Federal Deposit Insurance Corporation

Restoration Plan

AGENCY: Federal Deposit Insurance

Corporation (FDIC).

ACTION: Notice of establishment of

restoration plan.

Extraordinary growth in insured

deposits during the first and second

quarters of 2020 caused the Deposit

Insurance Fund (the DIF or the fund)

reserve ratio to decline below the

statutory minimum of 1.35 percent.1 As

of June 30, 2020, the reserve ratio had

fallen below the statutory minimum and

stood at 1.30 percent, 9 basis points

below the reserve ratio as of March 31,

2020, and 11 basis points below its

recent peak of 1.41 percent as of

December 31, 2019. Prior to 2020, the

DIF reserve ratio had not decreased

since the fourth quarter of 2009.

The Federal Deposit Insurance Act

(the FDI Act) requires that the FDIC’s

Board of Directors (Board) adopt a

restoration plan when the DIF reserve

ratio falls below 1.35 percent or is

expected to within 6 months.2 Under

the FDI Act, the restoration plan must

restore the reserve ratio to at least 1.35

percent within 8 years of establishing

the Plan, absent extraordinary

circumstances.3

Therefore, pursuant to section

7(b)(3)(E) (12 U.S.C. 1817(b)(3)(E)), the

FDIC established the following

Restoration Plan (or the Plan) on

September 15, 2020.

1. The FDIC will monitor deposit

balance trends, potential losses, and

other factors that affect the reserve ratio.

2. The FDIC will maintain the current

schedule of assessment rates for all

insured depository institutions (IDIs).

3. At least semiannually, the FDIC

will update its analysis and projections

for the fund and, if necessary,

recommend any modifications to the

Plan, such as increasing assessment

rates

eposit

balance trends, potential losses, and

other factors that affect the reserve ratio.

2. The FDIC will maintain the current

schedule of assessment rates for all

insured depository institutions (IDIs).

3. At least semiannually, the FDIC

will update its analysis and projections

for the fund and, if necessary,

recommend any modifications to the

Plan, such as increasing assessment

rates.

While subject to considerable

uncertainty, based on a range of

reasonable (though highly uncertain)

estimates of future losses and assuming

a return to normal insured deposit

growth, the reserve ratio would return to

1.35 percent without further action by

the FDIC before the end of the 8-year

period beginning upon the

implementation of the Plan, as required

by law.

Detailed Analysis and Basis for Actions

Taken by the Restoration Plan

The FDI Act requires that the FDIC

publish in the Federal Register a

detailed analysis of the factors

considered and the basis for the actions

taken with regard to the Restoration

Plan.4 The following summarizes the

analysis the FDIC conducted that

formed the basis of the Restoration Plan.

Source of Decline in Reserve Ratio

The decline in the reserve ratio during

the first half of 2020 was solely a result

of extraordinary insured deposit growth.

Table 1 shows the components of the

reserve ratio for the last quarter of 2019

and the first two quarters of 2020. Over

this period, the DIF balance grew and

did not experience material losses. As of

June 30, 2020, the DIF balance totaled

a record $114.7 billion, up $4.3 billion

from the end of 2019. Meanwhile,

insured deposits grew by an estimated

$1 trillion, resulting in an 11 basis point

decline in the reserve ratio from the end

of 2019.

TABLE 1—FUND BALANCE, ESTIMATED INSURED DEPOSITS, AND RESERVE RATIO

[$ In billions]

4th Qtr 2019

1st Qtr 2020

2nd Qtr 2020

Beginning Fund Balance ............................................................................................................

e,

insured deposits grew by an estimated

$1 trillion, resulting in an 11 basis point

decline in the reserve ratio from the end

of 2019.

TABLE 1—FUND BALANCE, ESTIMATED INSURED DEPOSITS, AND RESERVE RATIO

[$ In billions]

4th Qtr 2019

1st Qtr 2020

2nd Qtr 2020

Beginning Fund Balance .............................................................................................................

108.9

110.3

113.2

Plus: Net Assessment Revenue ...........................................................................................

1.3

1.4

1.8

Plus: Investment Income a ....................................................................................................

0.5

2.0

0.1

Less: Loss Provisions ...........................................................................................................

¥0.1

*

*

Less: Operating Expenses ...................................................................................................

0.5

0.5

0.5

Ending Fund Balance b ................................................................................................................

110.3

113.2

114.7

Estimated Insured Deposits .........................................................................................................

7,815.2

8,164.2

8,837.3

Ending Reserve Ratio ..................................................................................................................

1.41%

1.39%

1.30%

* = Less than $50 million.

a Includes unrealized gains/losses on available-for-sale securities.

b Components of fund balance changes may not sum to totals due to rounding.

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...................................................

1.41%

1.39%

1.30%

* = Less than $50 million.

a Includes unrealized gains/losses on available-for-sale securities.

b Components of fund balance changes may not sum to totals due to rounding.

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59307

Federal Register / Vol. 85, No. 183 / Monday, September 21, 2020 / Notices

5 The growth in estimated insured deposits

experienced during the first and second quarters of

2020 was surpassed only by quarters in which the

growth rate was substantially impacted by a

temporary increase in coverage for noninterest-

bearing transaction accounts or a permanent

increase in the standard maximum deposit

insurance amount from $100,000 to $250,000,

including specifically only the fourth quarter of

2010, the third quarter of 2009, and the fourth

quarter of 2008.

6 The reserve ratio is based on total estimated

insured deposits at the end of a given quarter. The

FDIC will rely on the reserve ratio as of September

30, 2028, the first quarter-end date for which the

reserve ratio will be known after September 15,

2028, the end date of the 8-year period.

7 The CARES Act established the Paycheck

Protection Program, which facilitated credit to

small businesses through loans backed by the full

faith and credit of the U.S. Government. The

CARES Act also provided Economic Impact

Payments of up to $1,200 per adult and $500 per

child, based on income, and expanded the amount

of and eligibility for unemployment benefits. See

Pub. L. 116–136 (Mar. 27, 2020).

The extraordinary growth in insured

deposits during the first half of 2020

was also unprecedented. As described

in more detail below, this increase

largely stemmed from actions

undertaken by depositors, both

businesses and individuals, as well as

government policy actions in response

to the Coronavirus 2019 (COVID–19)

pandemic

unemployment benefits. See

Pub. L. 116–136 (Mar. 27, 2020).

The extraordinary growth in insured

deposits during the first half of 2020

was also unprecedented. As described

in more detail below, this increase

largely stemmed from actions

undertaken by depositors, both

businesses and individuals, as well as

government policy actions in response

to the Coronavirus 2019 (COVID–19)

pandemic. During the first half of 2020,

estimated insured deposits grew by 4.5

percent (17.9 percent, annualized) in the

first quarter and by 8.2 percent (33.0

percent, annualized) in the second

quarter—two of the highest growth rates

since quarterly reporting began in

1991.5 Together, estimated insured

deposits grew by an amount equal to

approximately three years of insured

deposit growth in the first two quarters

of 2020 (Chart 1).

As of June 30, 2020, the

unprecedented rate of insured deposit

growth stemming from the pandemic

had reduced the reserve ratio to below

the statutory minimum of 1.35 percent.

Factors That Affect the Ability of the

Reserve Ratio to Return to 1.35 Percent

Deposit balance trends, potential

losses, and other factors will affect the

ability of the reserve ratio to return to

1.35 percent within 8 years of

implementing the Restoration Plan. To

determine whether the reserve ratio has

reached the statutory minimum, the

FDIC will rely on the reserve ratio as of

September 30, 2028.6 Under the Plan,

the FDIC will closely monitor the factors

affecting the reserve ratio and, as they

become clearer, will update the Plan, as

necessary, to reflect any updated

assumptions.

Deposit Balance Trends

The extraordinary growth in insured

deposits during the first and second

quarters of 2020 is largely a result of

actions taken by monetary and fiscal

authorities, and by individuals,

businesses, and financial market

participants in response to the COVID–

19 pandemic. Deposit growth initially

intensified in March upon the outbreak

of the COVID–19 pandemic

umptions.

Deposit Balance Trends

The extraordinary growth in insured

deposits during the first and second

quarters of 2020 is largely a result of

actions taken by monetary and fiscal

authorities, and by individuals,

businesses, and financial market

participants in response to the COVID–

19 pandemic. Deposit growth initially

intensified in March upon the outbreak

of the COVID–19 pandemic. As COVID–

19 infections spread throughout the

United States, individual states or major

metropolitan areas ordered millions of

Americans to stay home, severely

reducing their ability to engage in usual

commerce and forcing many businesses

to close temporarily or furlough

employees. Faced with economic

disruption and uncertainty, businesses

drew on their lines of credit and

conserved cash, increasing deposits.

Market volatility pushed investors to

safer assets, including cash and insured

deposits. Beginning in March, the Board

of Governors of the Federal Reserve

System (Federal Reserve) announced a

series of emergency actions, including

large-scale asset purchases and

emergency lending facilities, which

rapidly expanded its balance sheet by

more than $1 trillion and, with it, grew

IDI reserve balances and deposits.

As deposit growth associated with a

flight to safety began to stabilize, fiscal

stimulus and reduced spending applied

additional upward pressure on deposit

growth. As part of the Coronavirus Aid,

Relief, and Economic Security Act

(CARES Act), the U.S. government

provided over $1 trillion in direct

support to consumers and businesses

through business loans, expanded

unemployment insurance, and one-time

checks to individuals.7 Lending to small

businesses resulted in an increase in

deposits. For individuals, the resulting

surge in personal incomes from direct

government assistance, combined with

the dramatic reduction in discretionary

spending, fueled deposit growth and

lifted the personal savings rate to a

record high of 33.7 percent in April

xpanded

unemployment insurance, and one-time

checks to individuals.7 Lending to small

businesses resulted in an increase in

deposits. For individuals, the resulting

surge in personal incomes from direct

government assistance, combined with

the dramatic reduction in discretionary

spending, fueled deposit growth and

lifted the personal savings rate to a

record high of 33.7 percent in April. The

personal savings rate remained elevated

through July at 17.8 percent, and

monthly savings more than doubled to

$280 billion in June from $116 billion

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59308

Federal Register / Vol. 85, No. 183 / Monday, September 21, 2020 / Notices

8 Percent change for estimated weekly aggregate

domestic deposits, which includes insured and

uninsured deposits, at domestically chartered

commercial banks only. This statistic is based on

data that are reported weekly by a sample of banks

and does not include deposits at other IDIs,

including savings institutions. Federal Reserve, H.8

Data Release, Assets and Liabilities of Commercial

Banks in the United States, data as of August 19,

2020, available at https://www.federalreserve.gov/

releases/h8/current/default.htm.

9 ‘‘Problem’’ institutions are institutions with a

CAMELS composite rating of ‘‘4’’ or ‘‘5’’ due to

financial, operational, or managerial weaknesses

that threaten their continued financial viability.

10 See 12 CFR 327.10(b); see also 76 FR 10672,

10718 (Feb. 25, 2011) and 81 FR 32180, 32202 (May

20, 2016).

11 The quarterly weighted average assessment rate

was calculated based on FDIC data as of August 24,

2020, and is subject to change due to amendments

made through September 28, 2020, to IDIs’ quarterly

Consolidated Reports of Condition and Income or

quarterly Reports of Assets and Liabilities of U.S.

Branches and Agencies of Foreign Banks (as

applicable)

81 FR 32180, 32202 (May

20, 2016).

11 The quarterly weighted average assessment rate

was calculated based on FDIC data as of August 24,

2020, and is subject to change due to amendments

made through September 28, 2020, to IDIs’ quarterly

Consolidated Reports of Condition and Income or

quarterly Reports of Assets and Liabilities of U.S.

Branches and Agencies of Foreign Banks (as

applicable).

12 For simplicity, the analysis shown in Table 2

assumes that: (1) The assessment base grows 4.5

percent, annually; (2) the average assessment rate

remains at 4.0 basis points; (3) interest income on

the deposit insurance fund balance is zero; and (4)

operating expenses grow at 1 percent per year.

in February, or $3.4 trillion compared to

$1.4 trillion on an annualized basis.

Insured deposit growth rates are

expected to decline compared to rates

experienced during the first two

quarters of 2020. During the third

quarter of 2020 to the week ending

August 19, 2020, estimated domestic

deposits (including both insured and

uninsured deposits) for all domestically

chartered commercial banks declined by

0.7 percent.8 In the near term, low

interest rates and reduced fiscal support

in the face of weak economic

conditions, including weak labor

markets, incomes, and reduced

consumer spending may place

downward pressure on deposit growth

as depositors draw down savings. Even

as economic conditions improve,

deposits may decline as the

precautionary behavior exhibited by

depositors subsides and individuals and

businesses redirect deposits toward

consumption and higher-yielding

investments.

While insured deposit growth rates

are expected to decline, deposit

balances, including insured deposits,

could remain elevated until the factors

that supported their recent growth

decline from their current levels,

particularly monetary and fiscal policy

and economic uncertainty

ubsides and individuals and

businesses redirect deposits toward

consumption and higher-yielding

investments.

While insured deposit growth rates

are expected to decline, deposit

balances, including insured deposits,

could remain elevated until the factors

that supported their recent growth

decline from their current levels,

particularly monetary and fiscal policy

and economic uncertainty. The Federal

Reserve has indicated that it will

continue to provide monetary policy

support in the near-term with a

continuation of asset purchases. In the

medium- to long-term, if the Federal

Reserve implements a gradual approach

to unwinding monetary policy, as it did

in the post-2008 period, reserves may

remain elevated for years, even after

economic conditions improve. The

impact on deposits of a prolonged

period of economic weakness is difficult

to predict, but it is possible deposits

may remain elevated if businesses and

consumers continue to hold back

spending under such a scenario. Under

the Restoration Plan, the FDIC will

monitor these deposit balance trends

and their impact on the ability of the

reserve ratio to return to 1.35 percent

within 8 years of establishing the Plan.

Potential Losses

Losses from past and future bank

failures affect the reserve ratio by

lowering the fund balance. In recent

years, the DIF has experienced low

losses from IDI failures. On average, five

IDIs per year failed between 2015 and

2019, at an annual cost to the fund of

about $400 million. Two IDIs have

failed thus far in 2020, marking the

sixth year in a row with few or no

failures.

Future losses to the DIF remain

uncertain as the length of the pandemic

and the resulting potential economic

and banking effects are unclear

erienced low

losses from IDI failures. On average, five

IDIs per year failed between 2015 and

2019, at an annual cost to the fund of

about $400 million. Two IDIs have

failed thus far in 2020, marking the

sixth year in a row with few or no

failures.

Future losses to the DIF remain

uncertain as the length of the pandemic

and the resulting potential economic

and banking effects are unclear. The

uncertainties include, among others, the

length of time necessary for a full

economic recovery, how quickly

businesses are able to reopen and return

to pre-pandemic operations, and

consumer behavior during and after the

pandemic, which could have longer-

term effects on the condition and

performance of the banking industry.

Thus far, the industry has remained a

source of strength for the economy, in

part, because banks’ stronger capital

position has better positioned them to

withstand losses compared to 2008. As

of June 30, 2020, capital remained above

regulatory minimums and the industry

ratios for tier 1 risk-based capital and

total risk-based capital exceeded the

ratios reported at year-end 2007 by

several percentage points.

To anticipate declines in capital that

could trigger losses from IDI failures, the

FDIC also monitors other measures,

such as earnings, asset quality, and

supervisory ratings. Thus far, while

economic stress related to COVID–19

has impacted IDI earnings and lowered

net interest margins, asset quality and

supervisory ratings generally remain

strong. As of June 30, 2020, 1.08 percent

of loan and lease balances were

noncurrent, up from a year ago, but

below the peak of 5.46 percent in the

first quarter of 2010

as earnings, asset quality, and

supervisory ratings. Thus far, while

economic stress related to COVID–19

has impacted IDI earnings and lowered

net interest margins, asset quality and

supervisory ratings generally remain

strong. As of June 30, 2020, 1.08 percent

of loan and lease balances were

noncurrent, up from a year ago, but

below the peak of 5.46 percent in the

first quarter of 2010. The total number

of institutions on the FDIC’s Problem

Bank List fell to 52 in the second quarter

of 2020, continuing the decline in the

number of problem banks that has

occurred in every quarter since its peak

of 888 institutions in March 2011.9

Under the Restoration Plan, the FDIC

will monitor these and other measures

to project potential losses from past and

future IDI failures and their impact on

the ability of the reserve ratio to return

to 1.35 percent within 8 years of

establishing the Plan.

Other Factors

Other factors that affect the reserve

ratio include changes in IDI risk

profiles, which influence assessment

rates; growth in the assessment base;

DIF investment income and unrealized

gains and losses on investments; and

operating expenses. For example, under

the current rate schedule adopted

pursuant to the FDIC’s long-term fund

management plan,10 the weighted

average assessment rate for all IDIs is

approximately 4.0 basis points for the

assessment period ending June 30,

2020.11 In future quarters, this rate may

increase or decrease based on the risk

profiles of institutions, affecting the DIF

balance and, thus, the reserve ratio

through assessment income. Under the

Restoration Plan, the FDIC will monitor

these factors and their impact on the

ability of the reserve ratio to return to

1.35 percent within 8 years of

establishing the Plan

od ending June 30,

2020.11 In future quarters, this rate may

increase or decrease based on the risk

profiles of institutions, affecting the DIF

balance and, thus, the reserve ratio

through assessment income. Under the

Restoration Plan, the FDIC will monitor

these factors and their impact on the

ability of the reserve ratio to return to

1.35 percent within 8 years of

establishing the Plan.

Current Schedule of Assessment Rates

and Fund Projections

In developing this Restoration Plan,

the FDIC projected the DIF balance and

associated reserve ratio at the end of 8

years, using the current rate schedule

and assuming different rates of insured

deposit growth.12 While subject to

considerable uncertainty, it is the

FDIC’s view that raising assessments

based on two quarters of extraordinary

insured deposit growth would be

premature.

Table 2 depicts the amount of losses

that the DIF could absorb and still reach

1.35 percent within 8 years. For

example, if insured deposits grow at an

annual rate of 2.5 percent over the next

8 years, the DIF could absorb losses of

up to $23.7 billion and still reach the

minimum reserve ratio requirement

within 8 years. Alternatively, if insured

deposits grow at an annual rate of 4.5

percent over the next 8 years, the DIF

would need an additional $1.5 billion

for the reserve ratio to reach the 1.35

percent minimum.

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reserve ratio requirement

within 8 years. Alternatively, if insured

deposits grow at an annual rate of 4.5

percent over the next 8 years, the DIF

would need an additional $1.5 billion

for the reserve ratio to reach the 1.35

percent minimum.

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59309

Federal Register / Vol. 85, No. 183 / Monday, September 21, 2020 / Notices

13 The Board may increase or decrease the total

base assessment rate schedule up to a maximum

increase of 2 basis points or a fraction thereof or a

maximum decrease of 2 basis points or a fraction

thereof (after aggregating increases and decreases),

as the Board deems necessary. See 12 CFR 327.10(f).

TABLE 2—PROJECTED RESERVE RATIO AT THE END OF 8 YEARS ASSUMING DIFFERENT RATES OF INSURED DEPOSIT

GROWTH

Annual insured

deposit growth rate

[percent]

Industry insured

deposits

[billions of dollars]

DIF Reserve ratio

[percent]

DIF Balance needed

to reach 1.35 percent

reserve ratio

[billions of dollars]

Amount available

to absorb losses and

reach 1.35 percent

reserve ratio

[billions of dollars]

2.5 ....................................................

10,835

1.56

145.7

23.7

3.0 ....................................................

11,279

1.50

151.7

17.7

3.5 ....................................................

11,739

1.44

157.9

11.5

4.0 ....................................................

12,215

1.39

164.3

5.1

4.5 ....................................................

12,708

1.33

170.9

(1.5)

It is reasonable that annual insured

deposit growth could average less than

4.5 percent over the next 8 years for two

main reasons. First, annualized growth

has been less than 4.5 percent or

negative during most (57 percent)

quarters since quarterly reporting was

adopted in 1991

..

12,215

1.39

164.3

5.1

4.5 ....................................................

12,708

1.33

170.9

(1.5)

It is reasonable that annual insured

deposit growth could average less than

4.5 percent over the next 8 years for two

main reasons. First, annualized growth

has been less than 4.5 percent or

negative during most (57 percent)

quarters since quarterly reporting was

adopted in 1991. Most importantly, as

previously discussed, deposit growth

could face downward pressure in the

near-term based on economic

conditions, as the consumption and

investment patterns of individuals and

households exhibit less precautionary

behavior and as surge deposits are

disbursed or leave the banking system,

with growth rates normalizing over the

next 8 years.

For example, if insured deposits grow

at an annual rate of approximately 3.3

percent over the next 8 years, reflecting

the flow of surge deposits out of the

banking system and a return to normal

consumer behavior, then the long-term

growth rate (including extraordinary

growth during the first two quarters of

2020) would equal the long-term

average rate of 4.5 percent that the fund

has experienced since the 1990s. Under

this scenario, the table above shows that

losses would have to exceed $11.5

billion to prevent the reserve ratio from

reaching 1.35 percent in 8 years.

Due to the uncertainties discussed

elsewhere, losses from bank failures

remain difficult to project. However, the

banking industry is well capitalized, the

problem bank list remains low, and the

banking industry has appeared resilient

to the early stages of the economic

effects of the pandemic. As the effect of

the pandemic on the banking industry

becomes more apparent, the FDIC will

reassess its analysis of insured deposit

growth, potential losses, and other

factors that affect the reserve ratio

he

banking industry is well capitalized, the

problem bank list remains low, and the

banking industry has appeared resilient

to the early stages of the economic

effects of the pandemic. As the effect of

the pandemic on the banking industry

becomes more apparent, the FDIC will

reassess its analysis of insured deposit

growth, potential losses, and other

factors that affect the reserve ratio.

Semiannual Updates of Income and

Loss Projections

It is the FDIC’s view that frequent

updates are necessary because loss and

reserve ratio projections made so far

into the future are subject to

considerable uncertainty. Losses could

differ from projected amounts if

economic conditions worsen or

financial stresses facing IDIs prove more

or less severe. For example, DIF loss

projections may increase if the quality

of IDI assets quickly deteriorates or

capital markets become severely

constrained, and income could be

affected by the factors described

previously. Insured deposit growth

could be higher or lower based on future

economic conditions and the response

of fiscal and monetary authorities and

depositors.

Future updates to the Board may

result in changes in assumptions that

result in different assessment revenue

needs. Consequently, in order to fulfill

the statutory requirement to return the

fund reserve ratio to 1.35 percent, the

FDIC may need to adopt higher

assessment rates than those included in

the current assessment rate schedule.

Under assessment regulations, the Board

has the authority to adjust assessment

rates for all IDIs by up to two basis

points, without notice and comment, if

conditions warrant such an increase.13

Any increase greater than two basis

points would require notice and

comment. Given the considerable

uncertainty of long-range projections

and because the statutory deadline is 8

years away, the Restoration Plan

maintains the current assessment rate

schedule for all IDIs.

Federal Deposit Insurance Corporation.

By order of the Board of Directors

, if

conditions warrant such an increase.13

Any increase greater than two basis

points would require notice and

comment. Given the considerable

uncertainty of long-range projections

and because the statutory deadline is 8

years away, the Restoration Plan

maintains the current assessment rate

schedule for all IDIs.

Federal Deposit Insurance Corporation.

By order of the Board of Directors.

Dated at Washington, DC, on September

15, 2020.

James P. Sheesley,

Assistant Executive Secretary.

[FR Doc. 2020–20690 Filed 9–18–20; 8:45 am]

BILLING CODE 6714–01–P

FEDERAL RESERVE SYSTEM

Notice of Proposals To Engage in or

To Acquire Companies Engaged in

Permissible Nonbanking Activities

The companies listed in this notice

have given notice under section 4 of the

Bank Holding Company Act (12 U.S.C.

1843) (BHC Act) and Regulation Y, (12

CFR part 225) to engage de novo, or to

acquire or control voting securities or

assets of a company, including the

companies listed below, that engages

either directly or through a subsidiary or

other company, in a nonbanking activity

that is listed in § 225.28 of Regulation Y

(12 CFR 225.28) or that the Board has

determined by Order to be closely

related to banking and permissible for

bank holding companies. Unless

otherwise noted, these activities will be

conducted throughout the United States.

The public portions of the

applications listed below, as well as

other related filings required by the

Board, if any, are available for

immediate inspection at the Federal

Reserve Bank(s) indicated below and at

the offices of the Board of Governors.

This information may also be obtained

on an expedited basis, upon request, by

contacting the appropriate Federal

Reserve Bank and from the Board’s

Freedom of Information Office at

https://www.federalreserve.gov/foia/

request.htm. Interested persons may

express their views in writing on the

question whether the proposal complies

with the standards of section 4 of the

BHC Act

f Governors.

This information may also be obtained

on an expedited basis, upon request, by

contacting the appropriate Federal

Reserve Bank and from the Board’s

Freedom of Information Office at

https://www.federalreserve.gov/foia/

request.htm. Interested persons may

express their views in writing on the

question whether the proposal complies

with the standards of section 4 of the

BHC Act.

Unless otherwise noted, comments

regarding the applications must be

received at the Reserve Bank indicated

or the offices of the Board of Governors,

Ann E. Misback, Secretary of the Board,

20th Street and Constitution Avenue

NW, Washington, DC 20551–0001, not

later than October 6, 2020.

A. Federal Reserve Bank of Richmond

(Adam M. Drimer, Assistant Vice

President) 701 East Byrd Street,

Richmond, Virginia 23219. Comments

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