FDIC Examination Fees

FDIC examination fees for state non-member banks.

Position Statement

State banks should not have to pay new fees for their FDIC examinations.

Explanation

The FDIC currently does not charge fees for the examinations it performs on state non-member banks, the institutions for which it is the primary federal regulator. A number of recent Administration budgets submitted to Congress have included the imposition of FDIC exam fees for state-chartered institutions. ABA, the Conference of State Bank Supervisors, and other banking trade groups have successfully resisted these efforts.  We continue to oppose such proposals.

Examination fees will not increase safety and soundness. State examiners already conduct thorough evaluations of institutions. These fees will, however, increase costs and encourage unnecessary or duplicative examinations. Further, the new fees will reduce funds available for lending to local communities and will tilt the dual state/federal system of bank regulation toward the federal option by increasing the costs of a state bank charter.

The House and Senate committees of jurisdiction have repeatedly rejected the exam fee proposal and substituted for it other sources of revenue. The Administration's 2006 budget did not include the proposal. ABA will continue to monitor this issue.

Contact for further information: Cecelia Calaby (202) 663-5325.