The Federal Deposit Insurance Corporation (FDIC) Board of Directors has issued its latest semiannual update on the Restoration Plan for the Deposit Insurance Fund (DIF). According to FDIC staff projections, the reserve ratio is expected to meet the statutory minimum of 1.35 percent before the deadline of September 30, 2028.

Since the last update, there has been an increase in the DIF reserve ratio by 6 basis points. It rose from 1.22 percent as of June 30, 2024, to 1.28 percent as of December 31, 2024. This growth is attributed to an increase in the DIF balance and a slower-than-average growth in insured deposits.

The Federal Deposit Insurance Act mandates that the FDIC Board adopt a restoration plan if the DIF’s reserve ratio falls below 1.35 percent. The Restoration Plan was established on September 15, 2020, after extraordinary deposit growth during early 2020 caused a decline in the reserve ratio below this statutory minimum.