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Reserve Ratio Part 2

WASHINGTON (CN) - The Federal Deposit Insurance Corporation is amending its regulations to increase the amount of the Deposit Insurance Fund by taxing member banks in the second, third and fouth quarter of 2009, in case of further bank collapses.

Adding to the 7% special assessment, or tax, of the total assets of member banks for the first quarter of 2009, the FDIC will levy an up to 20 basis point tax on the capital of insured banks, for the rest of 2009. The actual number of basis points applied in the assessment will be determined by several factors, including the ratio of the value of domestic deposits relative to outstanding loans, and the risk profile of a bank's investment portfolio.

The FDIC expects this new rule, effective April 1, to raise the amount in the Deposit Insurance Fund to at least 1.25% of all insured deposits. The Fund is the source for covering customer deposits when a bank fails.

Click the document icon on the front page for details and links to the regulations. The document icon under the "Lead in Toys, Endangered Species, FAA & More" heading leads to other new regulations.

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