Section 1 Short title
This Act may be cited as the “Shielding Community Banks from Systemic Risk Assessments Act”.
Shielding Community Banks from Systemic Risk Assessments Act
A BILL
To amend the Federal Deposit Insurance Act to exempt community banks from any special assessment of the Federal Deposit Insurance Corporation caused by the use of the systemic risk authority under that Act, and for other purposes.
Sec. 2 Special assessments to recover losses due to the use of systemic risk authority
Findings— Congress finds the following:
Community banks, including rural banks, community development financial institutions, and minority depository institutions, did not cause or contribute to the recent bank failures of Silicon Valley Bank and Signature Bank, and otherwise may have seen deposit outflows due to the mismanagement of these large banks.
The Federal Deposit Insurance Corporation has broad flexibility under law to exempt community banks from the special assessment that the Corporation will need to charge to recoup losses from the use of the systemic risk exception.
Sense of Congress— It is the sense of the Congress that the Federal Deposit Insurance Corporation should fully exempt community banks from any special assessment to recoup losses to the Deposit Insurance Fund due to the failures of Silicon Valley Bank and Signature Bank and the use of the systemic risk exception.
Limitations on special assessments related to the use of the systemic risk authority— Section 13(c)(4)(G)(ii) of the Federal Deposit Insurance Act (12 U.S.C. 1823(c)(4)(G)(ii)) is amended by adding at the end the following:
“(IV) Exemptions; graduated assessments—With respect to any special assessment described under this clause, the Corporation shall—
“(aa) exempt insured depository institutions and depository institution holding companies with less than $5,000,000,000 in consolidated assets (or such higher asset amount as the Corporation determines appropriate); and
“(bb) graduate the amount of such special assessments such that insured depository institutions and depository institution holding companies with less than $50,000,000,000 in consolidated assets pay a significantly smaller portion of such assessment than those insured depository institutions and depository institution holding companies with $50,000,000,000 or more in consolidated assets.”