risk-based assessment system
(1) Risk-based assessment system (A) Risk-based assessment system required The Board of Directors shall, by regulation, establish a risk-based assessment system for insured depository institutions. (B) Private reinsurance authorized In carrying out this paragraph, the Corporation may— (i) obtain private reinsurance covering not more than 10 percent of any loss the Corporation incurs with respect to an insured depository institution; and (ii) base that institution’s assessment (in whole or in part) on the cost of the reinsurance. (C) “Risk-based assessment system” defined For purposes of this paragraph, the term “risk-based assessment system” means a system for calculating a depository institution’s assessment based on— (i) the probability that the Deposit Insurance Fund will incur a loss with respect to the institution, taking into consideration the risks attributable to— (I) different categories and concentrations of assets; (II) different categories and concentrations of liabilities, both insured and uninsured, contingent and noncontingent; and (III) any other factors the Corporation determines are relevant to assessing such probability; (ii) the likely amount of any such loss; and (iii) the revenue needs of the Deposit Insurance Fund. (D) Separate assessment systems The Board of Directors may establish separate risk-based assessment systems for large and small members of the Deposit Insurance Fund. (E) Information concerning risk of loss and economic conditions (i) Sources of information For purposes of determining risk of losses at insured depository institutions and economic conditions generally affecting depository institutions, the Corporation shall collect information, as appropriate, from all sources the Board of Directors considers appropriate, including reports of condition, inspection reports, and other information from all Federal banking agencies, any information available from State bank supervisors, State insurance and securities regulators, the Securities and Exchange Commission (including information described in section 1831l of this title ), the Secretary of the Treasury, the Commodity Futures Trading Commission, the Farm Credit Administration, the Federal Trade Commission, any Federal reserve bank or Federal home loan bank, and other regulators of financial institutions, and any information available from private economic, credit, or business analysts. (ii) Consultation with Federal banking agencies (I) In general Except as provided in subclause (II), in assessing the risk of loss to the Deposit Insurance Fund with respect to any insured depository institution, the Corporation shall consult with the appropriate Federal banking agency of such institution. (II) Treatment on aggregate basis In the case of insured depository institutions that are well capitalized (as defined in section 1831o of this title ) and, in the most recent examination, were found to be well managed, the consultation under subclause (I) concerning the assessment of the risk of loss posed by such institutions may be made on an aggregate basis. (iii) Rule of construction No provision of this paragraph shall be construed as providing any new authority for the Corporation to require submission of information by insured depository institutions to the Corporation, except as provided in subsection (a)(2)(B). (F) Modifications to the risk-based assessment system allowed only after notice and comment In revising or modifying the risk-based assessment system at any time after February 8, 2006 , the Board of Directors may implement such revisions or modification in final form only after notice and opportunity for comment.