Wednesday, October 22, 2025

FDIC Calls for Banks to Correct Underreported Uninsured Deposits

In the wake of a recent banking crisis, the US FDIC has issued a call for certain banks to amend their financial statements, which had “incorrectly” diminished the total of uninsured deposits, as regulators start drafting new legislation to bolster industry resilience.

In May, the FDIC announced a “special assessment” fee as a measure to recoup losses from the collapse of three American banks. This fee would be calculated based on the volume of a bank’s uninsured deposits at the end of the previous year.

The FDIC noticed some banks were not correctly reporting these uninsured deposit estimates. As such, the FDIC has mandated that each bank’s CFO, along with several directors, attest to the accuracy of these reports, giving them up to three years to submit revisions, or even more if necessary.

“Some institutions incorrectly reduced the amount reported to the extent that the uninsured deposits are collateralized by pledged assets; this is incorrect because in and of itself, the existence of collateral has no bearing on the portion of a deposit that is covered by federal deposit insurance,” the regulator said in a statement.

However, as authorities tighten regulations, there is growing concern among banks. They fear these stringent standards could place undue strain on the industry, particularly when a decline in loan demand is expected later in the year.


Information for this briefing was found via the FDIC. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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