WASHINGTON (11/10/10)—The Federal Deposit Insurance Corporation (FDIC) on Tuesday released proposals that would base bank assessments on assets and “re-propose (some) changes for the deposit insurance assessment system.” Specifically, the FDIC proposed changing the assessment base for banks “from adjusted domestic deposits to average consolidated total assets minus average tangible equity.” This move would increase the size of the assessment base, according to the FDIC. The FDIC has also proposed lowering its existing assessment rates, since the assessment base is increasing. FDIC Chairman Sheila Bair in a release said that "while the change in the assessment base affects the amounts paid by individual institutions, this proposed rule is designed to keep the total amount collected from the industry very close to unchanged. This proposal will align with the restoration plan recently approved by the Board to reflect the higher reserve ratio required under Dodd-Frank." The FDIC has also proposed eliminating “risk categories and debt ratings from the assessment calculation for large banks,” replacing those categories and ratings with scorecards. “The scorecards would include financial measures that are predictive of long-term performance,” the FDIC said. The risk-based rate is based on multiple financial and supervisory factors, which vary based on the size of the institution. The FDIC should reveal additional changes in risk factors used for large financial institutions in a separate, to be issued proposal. The proposals, which will be available for comment for 45 days after their release in the Federal Register, could become effective in April of 2011. For the full release, use the resource link.