The FDIC Improvement Act requires riskier, inadequately capitalized U.S. banks to pay higher deposit insurance fees.

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The FDIC Improvement Act of 1991 was designed to allow the Federal Deposit Insurance Corporation (FDIC) to charge higher insurance premiums to banks that are considered riskier, which typically includes those with inadequate capitalization, as a way to offset the greater risk of insuring deposits at these institutions.

The FDIC Improvement Act Requires Riskier, Inadequately Capitalized U