That is now about forty-five cents out of every dollar that flows into the fund. In fact, it is grossly undercapitalized. The Bank Insurance Fund, however, is not. When that target is reached, BIF-insured institutions will see their premiums decline significantly. SAIF-insured institutions, however, cannot see their premiums decline.
Nothing is further from the truth.
Instead of growing, it shrank. Further, the problem is exacerbated by very clear legal constraints that prevent the assessments of some SAIF members from being used to meet the FICO obligation. There is nothing that the FDIC can do to change the mistaken assumptions embedded in the system or the law. Further, our hands are tied in two of the related matters. First, Congress set the 1.25 reserve ratio for banks and thrifts.