FDIC issues final rule on troubled debt restructuring accounting standards

Bank Regulatory Agency Rule-Making & Guidance Federal Issues FDIC Deposit Insurance

On October 18, the FDIC published a final rule in the Federal Register to incorporate updated accounting standards in the risk-based deposit insurance assessment system applicable to all large and highly complex insured depository institutions. According to the FDIC, the final rule adds a new term, “modifications to borrowers experiencing financial difficulty,” to two financial measures—the underperforming assets ratio and the higher-risk assets ratio—that are used to determine deposit insurance assessments for large and highly complex insured depository institutions.