FDIC proposes changes in determining big banks’ insurance fees to account for risk

FDIC weighs changes in its fees for big banks

WASHINGTON — The Federal Deposit Insurance Corp. is proposing changes to the way it determines how much it charges big banks to insure their deposits, with the aim of having large, higher-risk institutions pay bigger premiums.

Large financial institutions pose unique risks to the deposit insurance fund, something that came to the fore during the financial crisis, the agency said in a news release Tuesday.

Under the proposed changes, ratings of banks’ long-term debt would no longer be used to measure risk and calculate insurance fees. Ratings of financial strength assigned to banks by government examiners still would be used, however. Other criteria such as the quality of a bank’s risk management practices, could eventually also be used.