Deposit Insurance Premium Raised
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WASHINGTON — The Federal Deposit Insurance Corp. voted unanimously Tuesday to raise the deposit insurance premium paid by banks for the third time in a year and a half.
The premium will increase to 23 cents per $100 of deposits annually, effective July 1. It has been 19.5 cents since Jan. 1. It was 12 cents during 1990 and 8.3 cents before that.
The latest increase, which was proposed by the board March 6, will generate $870 million a year. The agency, which insures deposits at 12,300 commercial banks and 500 savings banks, plans to borrow $10 billion to shore up its dwindling fund and use the revenue from the latest premium increase to repay it.
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