On March 15, the FDIC approved a final rule to increase the Deposit Insurance Fund (DIF) reserve ratio from 1.15 percent to the statutorily required minimum of 1.35 percent. The final rule, which is substantially similar to the proposed rule adopted in October 2015, imposes on banks with at least $10 billion in assets a surcharge of 4.5 cents per $100 of their assessment base, after certain adjustments are made. The rule becomes effective on July 1, 2016. If the reserve ratio reaches 1.15 percent before the effective date, the surcharges will begin on that date; if the reserve ratio has not reached 1.15 percent by the effective date, surcharges will begin the first quarter after the reserve ratio reaches 1.15 percent. The FDIC noted that it expects the reserve ratio to reach the 1.35 percent statutory minimum approximately two years after the surcharges begin. FDIC Chairman Martin J. Gruenberg commented, “With these surcharges, the [DIF] is expected to reach the statutory minimum level ahead of the statutory deadline of 2020, reducing the risk that the FDIC will have to raise rates unexpectedly in the event of stress in the financial sector.”