The Designated Reserve Ratio is a rule that stipulates that highly-rated DIs would not pay deposit insurance premiums if this ratio was above 0.25 percent.

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The Designated Reserve Ratio (DRR) is a target set by the FDIC for the Deposit Insurance Fund (DIF), not a rule about premium payments by highly-rated depository institutions (DIs) based on the ratio being above 0.25 percent. Premiums are determined by a variety of factors, not just the DRR.

The Designated Reserve Ratio Is a Rule That Stipulates That