Banks see higher FDIC charges lasting through 2018
Levy adds millions to dealers' expenses
Large US banks expect to have to pay higher premiums to the Federal Deposit Insurance Corporation (FDIC) until the end of the year, inflating their expenses outlook for the next two quarters.
The FDIC has levied a large institution surcharge, intended to buttress the corporation’s Deposit Insurance Fund (DIF), since July 2016. The surcharge lasts until the ratio of the amount in the DIF to total insured deposits at US banks reaches 1.35%, or until end-December 2018, whichever comes soonest.
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