FHLBank Advances May Be Less Desirable Under New FDIC Deposit Insurance Assessment Rates
October 16, 2008
The Federal Deposit Insurance Corp. is planning to charge higher deposit insurance premiums for banks and thrifts that rely heavily on Federal Home Loan Bank advances, which have seen a boom in volume since the secondary mortgage market turmoil began a year ago. Under the FDIC’s proposed restoration plan, institutions with a significant reliance on secured liabilities would have to pay...