‘‘(i) may not exceed 1.4 percent of es-
timated insured deposits; and 
‘‘(ii) may not be less than 1.15 per-
cent of estimated insured deposits. 
‘‘(C) FACTORS.—In designating a reserve 
ratio for any year, the Board of Directors 
shall—
‘‘(i) take into account the risk of 
losses to the Deposit Insurance Fund in 
such year and future years, including his-
toric experience and potential and esti-
mated losses from insured depository insti-
tutions; 
‘‘(ii) take into account economic con-
ditions generally affecting insured deposi-
tory institutions so as to allow the des-
ignated reserve ratio to increase during 
more favorable economic conditions and to 
decrease during less favorable economic 
conditions, notwithstanding the increased 
risks of loss that may exist during such 
less favorable conditions, as determined to 
be appropriate by the Board of Directors;
‘‘(iii) seek to prevent sharp swings in 
the assessment rates for insured depository 
institutions; and 
‘‘(iv) take into account such other fac-
tors as the Board of Directors may deter-
mine to be appropriate, consistent with the 
requirements of this subparagraph. 
‘‘(D) PUBLICATION OF PROPOSED CHANGE 
IN RATIO.—In soliciting comment on any pro-
posed change in the designated reserve ratio in 
accordance with subparagraph (A), the Board 
of Directors shall include in the published pro-
posal a thorough analysis of the data and pro-
jections on which the proposal is based.’’. 
(b) TECHNICAL AND CONFORMING AMENDMENT.—
Section 3(y) of the Federal Deposit Insurance Act (12 
U.S.C. 1813(y)) is amended—
(1) by striking ‘‘(y) The term’’ and inserting(y) 
Definitions Relating to Deposit Insurance Fund.—
‘‘(1) DEPOSIT INSURANCE FUND.—The term’’; 
and 
(2) by inserting after paragraph (1) (as so des-
ignated by paragraph (1) of this subsection) the fol-
lowing new paragraph:
‘‘(2) DESIGNATED RESERVE RATIO.—The term 
‘designated reserve ratio’ means the reserve ratio 
designated by the Board of Directors in accordance 
with section 7(b)(3).’’. 
(c) EFFECTIVE DATE.—This section and the amend-
ments made by this section shall take effect on the date 
that the final regulations required under section 9(a)(1) 
take effect. 
SEC. 6. REQUIREMENTS APPLICABLE TO THE RISK-BASED 
ASSESSMENT SYSTEM. 
Section 7(b)(1) of the Federal Deposit Insurance Act 
(12 U.S.C. 1817(b)(1)) is amended by adding at the end 
the following new subparagraphs: 
‘‘(E) INFORMATION CONCERNING RISK OF 
LOSS AND ECONOMIC CONDITIONS.—
‘‘(i) SOURCES OF INFORMATION.—For 
purposes of determining risk of losses at 
insured depository institutions and eco-
nomic conditions generally affecting depos-
itory institutions, the Corporation shall col-
lect information, as appropriate, from all 
sources the Board of Directors considers 
appropriate, such as reports of condition, 
inspection reports, and other information 
from all Federal banking agencies, any in-
formation available from State bank super-
visors, State insurance and securities regu-
lators, the Securities and Exchange Com-
mission (including information described in 
section 35), the Secretary of the Treasury, 
the Commodity Futures Trading Commis-
sion, the Farm Credit Administration, the 
Federal Trade Commission, any Federal 
reserve bank or Federal home loan bank, 
and other regulators of financial institu-
tions, and any information available from 
credit rating entities, and other private 
economic or business analysts. 
‘‘(ii) CONSULTATION WITH FEDERAL 
BANKING AGENCIES.—
‘‘(I) IN
GENERAL.—Except as 
provided in subclause (II), in assess-
ing the risk of loss to the Deposit In-
surance Fund with respect to any in-
sured depository institution, the Cor-
poration shall consult with the appro-
priate Federal banking agency of such 
institution. 
‘‘(II) TREATMENT
ON
AGGRE-
GATE BASIS.—In the case of insured