Federal Deposit Insurance Corporation Regulatory Flexibility Act of 1995

Summary: Federal Deposit Insurance Corporation Regulatory Flexibility Act of 1995 - Amends the Federal Home Loan Bank Act (FHLBA) to require the Board of Directors of the Federal Deposit Insurance Corporation (FDIC), after consultation with the Financing Corporation (FICO), (currently, FICO, with FDIC Board approval) to place a prescribed assessment against each Savings Association Insurance Fund (SAIF) member in order to cover interest payments, issuance costs, and custodial fees of certain FICO obligations. 
Amends the Federal Deposit Insurance Act (FDIA) to direct the Secretary of the Treasury to provide to the FDIC, upon its request, certain funds not needed by the Resolution Trust Corporation (RTC), in order to cover the same FICO costs. 
Authorizes the FDIC to transfer, for an appropriate period of time, up to a certain percentage of a fund's assessment base between the Bank Insurance Fund (BIF) and the SAIF as necessary to achieve or maintain the designated reserve ratio of the transferee fund. 
Amends the FDIA to authorize the FDIC to impose a one-time special SAIF capitalization assessment. 
Reformulates the designated reserve ratio for each deposit insurance fund to establish a minimum instead of a target amount. Empowers the FDIC Board of Directors to reduce semiannual assessments if an insurance fund's reserve ratio is equal to or greater than its minimum designated reserve ratio. 
Mandates that insurance assessments be used primarily for insurance fund purposes and not be unduly diverted to other uses. 
Amends the FHLBA to include within FICO assessment authority specified SAIF members as well as BIF members whose deposits are treated as insured by the SAIF. 
Amends the FDIA to repeal the minimum assessment requirements for any insured deposit insurance fund (including the SAIF).

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Federal Deposit Insurance 
Corporation Regulatory Flexibility Act of 1995''.

SEC. 2. ADMINISTRATION OF FICO ASSESSMENTS BY FDIC.

    Section 21(f)(2) of the Federal Home Loan Bank Act (12 U.S.C. 
1441(f)(2)) is amended by striking ``the Financing Corporation, with 
the approval of the Board of Directors of the Federal Deposit Insurance 
Corporation'' and inserting ``the Board of Directors of the Federal 
Deposit Insurance Corporation, after consultation with the Financing 
Corporation,''.

SEC. 3. AVAILABILITY OF RTC FUNDS FOR DEPOSIT INSURANCE PURPOSES.

    Section 11(a) of the Federal Deposit Insurance Act (12 U.S.C. 
1821(a)) is amended--
            (1) by adding at the end the following new paragraph:
            ``(9) Availability of rtc funding.--
                    ``(A) In general.--The Secretary of the Treasury 
                shall provide, out of funds appropriated to the 
                Resolution Trust Corporation under section 21A(i)(3) of 
                the Federal Home Loan Bank Act and not needed by the 
                Resolution Trust Corporation, to the Corporation, at 
                the request of the Board of Directors, such amounts as 
                the Board of Directors requests for any of the 
                following purposes:
                            ``(i) To cover the interest payments, 
                        issuance costs, and custodial fees on 
                        obligations issued by the Financing 
                        Corporation.
                            ``(ii) To make deposits in the Savings 
                        Association Insurance Fund of such amounts as 
                        may be needed to carry out the purposes of this 
                        Act.
                            ``(iii) To satisfy claims against the 
                        Federal Government arising from changes in the 
                        statutory treatment of supervisory goodwill (on 
                        the books of the Corporation as of the date of 
                        the enactment of Financial Institutions Reform, 
                        Recovery, and Enforcement Act of 1989) pursuant 
                        to section 5(t) of the Home Owners' Loan Act.
                    ``(B) Return to treasury.--If the aggregate amount 
                of funds transferred to the Corporation under 
                subparagraph (A) exceeds the amount necessary to carry 
                out the purposes of such subparagraph, such excess 
                amounts shall be deposited in the general fund of the 
                Treasury.''.

SEC. 4. LIMITED FDIC AUTHORITY TO TEMPORARILY TRANSFER FUNDS BETWEEN 
              THE BIF AND SAIF.

    Section 11(a)(4) of the Federal Deposit Insurance Act (12 U.S.C. 
1821(a)) is amended by adding at the end the following new 
subparagraph:
                    ``(C) Transfer of funds.--Notwithstanding 
                subparagraph (A), the Corporation may transfer, for 
                such period of time and under such conditions as the 
                Corporation determines to be appropriate, an amount not 
                to exceed the amount equal to .03 percent of the 
                assessment base of any deposit insurance fund from such 
                fund to another deposit insurance fund to the extent 
                necessary to achieve or maintain the designated reserve 
                ratio of the fund to which such assets are 
                transferred.''.

SEC. 5. 1-TIME SPECIAL SAIF CAPITALIZATION ASSESSMENT.

    Section 7(b) of the Federal Deposit Insurance Act (12 U.S.C. 
1817(b)) is amended by adding at the end the following new paragraph:
            ``(8) Special 1-time assessment to recapitalize saif.--
                    ``(A) In general.--The Corporation may, in the 
                discretion of the Board of Directors, impose a special 
                assessment on each Savings Association Insurance Fund 
                member in an amount not greater than 0.40 percent of 
                the assessment base, as of January 1, 1995, on which 
                assessments are imposed under the risk-based assessment 
                system established pursuant to paragraph (1).
                    ``(B) Deposit of assessment in saif.--The proceeds 
                of any assessment imposed under subparagraph (A) shall 
                be deposited in the Savings Association Insurance Fund.
                    ``(C) Imposition over period of years.--The 
                assessment authorized under subparagraph (A) may be 
                imposed incrementally over such period of years as the 
                Board of Directors may determine to be appropriate, 
                except the larger percentage of any such incremental 
                assessment shall be allocated to the first year of the 
                effective period for such assessment.
                    ``(D) Abatement for troubled institutions.--The 
                Board of Directors may abate any portion of any 
                assessment under this paragraph in the case of any 
                undercapitalized institution or any institution which 
                would become undercapitalized as a result of the 
                imposition of such assessment.''.

SEC. 6. ESTABLISHMENT OF DESIGNATED RESERVE RATIO AS A FLOOR RATHER 
              THAN A TARGET.

    (a) Section 7(b)(2)(A)(iv) of the Federal Deposit Insurance Act (12 
U.S.C. 1817(b)(2)(A)(iv)) is amended to read as follows:
                            ``(iv) Establishment of designated reserve 
                        ratio.--The Board of Directors shall establish 
                        the designated reserve ratio for each insurance 
                        fund in accordance with the following:
                                    ``(I) The designated reserve ratio 
                                of any insurance fund shall be not less 
                                than 1.25 percent of the estimated 
                                insured deposits of members of such 
                                fund.
                                    ``(II) The ratio of any insurance 
                                fund shall be established at an amount 
                                which the Board of Directors determines 
                                will provide for an appropriate amount 
                                of reserves against losses which may 
                                reasonably be expected to be incurred 
                                by the fund without resulting in an 
                                excessive buildup in the fund.''.
    (b) Reduction in Assessment Rate if Designated Reserve Ratio Is 
Met.--Section 7(b)(2)(A) of the Federal Deposit Insurance Act (12 
U.S.C. 1817(b)(2)(A)) is amended by adding at the end the following new 
clause:
                            ``(v) Clarification of authority to reduce 
                        assessments amounts.--The authority of the 
                        Board of Directors to set semiannual 
                        assessments to maintain the reserve ratio of 
                        any insurance fund at the designated reserve 
                        ratio includes the authority to reduce such 
                        assessments by any appropriate amount if the 
                        reserve ratio of such fund is equal to or 
                        greater than the minimum designated reserve 
                        ratio of such fund.''.

SEC. 7. CLARIFICATION ON USE OF INSURANCE FUND ASSESSMENTS.

    Section 7(b) of the Federal Deposit Insurance Act (12 U.S.C. 
1817(b)) is amended by adding at the end the following new paragraph:
            ``(8) Use of insurance assessments.--Amounts received by 
        the Corporation pursuant to assessments on insured depository 
        institution under this subsection shall be used primarily for 
        insurance fund purposes and shall not be unduly diverted to 
        other uses.''.

SEC. 8. CLARIFICATION THAT CERTAIN INSTITUTIONS INSURED BY THE SAIF ARE 
              SUBJECT TO FICO ASSESSMENTS.

    Section 21(f)(2) of the Federal Home Loan Bank Act (12 U.S.C. 
1441(f)(2)) is amended by inserting after ``Savings Association 
Insurance Fund member'' the following: ``, including any Savings 
Association Insurance Fund member referred to in section 5(d)(2)(G) of 
the Federal Deposit Insurance Act and, in the case of any Bank 
Insurance Fund member which has deposits which are treated (under 
section 5(d)(3) of such Act) as deposits which are insured by the 
Savings Association Insurance Fund, the adjusted attributable deposit 
amount with respect to such member as determined under subparagraph (C) 
of section 5(e)(3) of such Act for purposes of subparagraph (B)(i) of 
such section,''.

SEC. 9. REPEAL OF MINIMUM SAIF ASSESSMENT RULE.

    Section 7(b)(2) of the Federal Deposit Insurance Act (12 U.S.C. 
1817(b)(2)) is amended by striking subparagraph (E).