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Economic Commentary

SAIF Policy Options

As part of the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA) of 1989, Congress mandated a minimum coverage ratio of $1.25 of insurance reserves per $100 of insured deposits for the Bank Insurance Fund (BIF) and Savings Association Insurance Fund (SAIF). The Federal Deposit Insurance Corporation (FDIC), which administers both funds, estimates that the BIF’s ratio will reach the mandated 125-basis-point coverage ratio by midyear and that as a result, banks and other BIF-insured depositories are likely to see their average deposit insurance assessment fall from 24 cents per $100 of domestic deposits to 4 cents by the close of 1995.

The views authors express in Economic Commentary are theirs and not necessarily those of the Federal Reserve Bank of Cleveland or the Board of Governors of the Federal Reserve System. The series editor is Tasia Hane. This paper and its data are subject to revision; please visit for updates.

Suggested Citation

Osterberg, William P. 1995. “SAIF Policy Options.” Federal Reserve Bank of Cleveland, Economic Commentary 6/1/1996.

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