"The improvement in the Deposit Insurance Fund in 2016 mirrors the largely positive performance of the banking industry during the year," the release stated. "Revenue and net income were higher, asset quality improved, and the number of unprofitable and problem banks continued to decline."
Growth in the Fund also reflects implementation of the plan adopted by the FDIC board last year to raise the reserve ratio to the higher minimum set by the Dodd-Frank Act — 1.35 percent — by the statutory deadline of September 30, 2020, the release explained.
The FDIC projected that the present reserve ratio of 1.15 percent would meet the 1.35 requirement in 2018, two years ahead of schedule.
President Donald Trump and Republicans in the US Congress are exploring alternatives to Dodd-Frank reforms enacted after the 2008 banking crisis.
Critics cite the law as an example of regulatory excess in the Obama administration, claiming that Dodd-Frank limits the ability of banks to make loans to small businesses.
