U.S. FDIC to raise fees on banks

WASHINGTON, Feb. 27 (Chinese media) -- The Federal Deposit Insurance Corporation (FDIC) announced on Friday that it will increase some 27 billion dollars of insurance fees that will be collected from the nation's banks.

The one-time emergency fee of 20 cents per 100 dollars in insured deposits will be collected in the third quarter. That compares with an average premium of 6.3 cents paid by banks and thrifts last year.

Moreover, the FDIC will raise the regular insurance premiums for banks to a range of 12 cents and 16 cents for per 100 dollars in deposits starting in April, an increase from 12 to 14 cents.

FDIC officials said such a move was necessary because the insurance fund, with the surging number of bank failures in the last year, has dropped below a legally mandated minimum.

The agency, which insures deposits at 8,500 banks, estimates that it will lose 80 billion dollars from 2008 to 2013 as a result of bank failures, double the losses estimated in the fall.

Twelve FDIC-insured institutions failed during the fourth quarter of 2008 and one banking organization received assistance. During the past year, a total of 25 insured institutions failed.

Meanwhile, the FDIC's "Problem List" grew during the fourth quarter from 171 to 252 institutions, the largest number since the middle of 1995. Total assets of problem institutions increased from 115.6 billion dollars to 159 billion dollars due to the deepening financial crisis.