WASHINGTON — The FDIC Board voted in favor of a one-time credit totaling $4.7 billion for qualifying banks and thrifts under the Federal Deposit Insurance Reform Act of 2005.

Banks and thrifts, or their successors, must have been in business prior to Dec. 31, 1996 and paid insurance assessments before then to be eligible. A successor is defined as an institution resulting from a merger, consolidation, or the acquisition of 90% of an institution's assets and deposit liabilities. Qualifying insured institutions, including over 7,300, can use the credit to offset future assessments charged by the FDIC.

"There is seldom an option where everybody is happy, but in the end, the FDIC sought to craft a fair rule that was very responsive to the comment letters received on the proposed rule," FDIC Chairman Sheila C. Bair commented. "The system is legally grounded as well as operationally feasible and is consistent with the purpose of the one-time credit–that is, to recognize the contributions that certain institutions made to capitalize the funds."