How often does the FDIC assess the health of banks?

The FDIC assesses the health of banks every 12 to 18 months based on each bank's risk profile because this approach allows for a more tailored examination schedule. Banks that are considered to be higher risk may be subject to more frequent evaluations, while those with a lower risk profile may have their assessments scheduled further apart. This risk-based scheduling reflects the FDIC’s commitment to ensuring that resources are allocated effectively while also maintaining the stability of the financial system.

This methodology allows the FDIC to focus its examination efforts on banks that may pose a greater risk to depositors and the overall banking system. As a result, the agency can respond proactively to potential issues before they escalate into significant problems. Consequently, the assessments are not uniform for all banks, emphasizing the importance of understanding the specific risk factors associated with each institution.