FDIC to update regulatory thresholds, delays signage compliance date

The FDIC board today voted to start indexing certain regulatory thresholds and to delay the compliance date for its revised requirements regarding the use of the agency’s name and logo. It also elected to hold the designated reserve ratio for the Deposit Insurance Fund at 2%.

Under the final rule, the FDIC will update certain agency thresholds to reflect the cumulative inflation that has occurred since their initial implementation date or the last time they were adjusted. The rule also establishes automatic adjustments every two years based on the Consumer Price Index and allows the FDIC to adjust thresholds in intervening years if the cumulative change in CPI exceeded 8% since the most recent adjustment.

The rule will take effect Jan. 1, 2026. Also, banks currently subject to part 363 requirements but will no longer be subject to the requirements under the updated thresholds. The rule sets an Oct. 1 effective date for future threshold adjustments.

Signage requirements

The FDIC last year adopted new signage requirements that were scheduled to take effect on March 1, 2026. The agency has since proposed to make further changes to the requirements, which have yet to be finalized.

With the proposal still outstanding, the board voted to push back the compliance date to Jan. 1, 2027, given “that institutions may need to make investments in advance of the compliance date.”

Deposit Insurance Fund

The Federal Deposit Insurance Act requires that the FDIC set the designated reserve ratio for the DIF before the start of each calendar year. The DRR has been set at 2% since 2011, and at today’s meeting, the board voted to maintain it at that level in 2026, as recommended by agency staff.

ABA responds

At the same meeting, the FDIC board voted to revise supplementary leverage ratio standards for the largest banks and advanced a proposal to change the community bank leverage ratio. In a statement, American Bankers Association President and CEO Rob Nichols thanked the board for taking several steps to improve the bank regulatory framework.

“Today the FDIC took an important step toward a more stable and predictable regulatory framework by finalizing a rule that indexes certain key bank thresholds so they remain aligned with growth,” Nichols said. “ABA encourages other regulators and Congress to adopt approaches that prevent regulatory drift and keep supervisory attention focused where it is most needed.”

As for FDIC signage, Nichols said ABA welcomed the new compliance date.

“As the number of players in the financial services marketplace increases, it’s important for Americans to understand which financial institutions are FDIC insured, and which are not,” he said. “This extension will help prevent unnecessary burden for banks and enhance clarity for bank customers as the FDIC considers further changes.”