The White House is encouraging the Federal Deposit Insurance Corp. to exempt community banks from a special assessment tied to the failure of two regional banks.
The FDIC is weighing options for replenishing an estimated $23 billion hit to the Deposit Insurance Fund, and current law requires the agency to level a special assessment on banks. Regulators agreed to insure all deposits at Silicon Valley Bank and Signature Bank.
The White House also said in a statement that it wants to reinstate rules that were rolled back during the Trump Administration for banks $100 billion to $250 billion of assets, including liquidity requirements and enhanced liquidity stress testing and annual supervisory capital stress tests.
The Biden Administration also wants to reinstate comprehensive resolution plans for banks with bank holding companies with $100 billion to $250 billion of assets. It also wants strong capital requirements for banks “at an appropriate time after a considerable transition period.”
Finally, the White House said it wants to reduce transition periods for banks that cross regulatory thresholds, along with stronger stress testing. It wants to expand long-term debt requirements to a broader range of banks.