"Texas banks are ready to do their part to insure that the Federal Deposit Insurance Corporation will have enough resources to cover any possible failure within the FDIC system," said Texas Bankers Association President Eric Sandberg.

His comment follows a recent announcement by the FDIC that banks will be asked to pre-pay normal FDIC payments to keep the Depositor's Insurance Fund solvent.

"The FDIC has determined that they require additional funds, and they are taking a proactive step toward securing those funds. They are asking that future years' funds be available one year in advance," Sandberg said. "This is not the first time the FDIC has had a strain on its reserves. It has dipped low as recently as the beginning of the 1990s, and we've always paid our way out. This time is no different. The banking industry funds its own reserves and will continue to do so."

It is important to remember that nobody has ever lost money from an FDIC-insured institution, said Sandberg. "The safest place for your money is still in the bank. Depositors can rest assured of the safety of their deposits."

The FDIC announced that the fund that insures the money of depositors is anticipated to reach a reserve ratio of less than zero. The fund, which is required by regulation to maintain a 1.15 percent minimum, is expected to be replenished over time by a threeyear prepaid assessment on financial institutions. The assessment will require financial institutions to prepay up to three years' sum of their usual assessment, expensed quarterly.

Texas banks have been hailed by independent sources as among the healthiest financial institutions in the nation. "Furthermore," Sandberg said, "the economy in Texas is in very good shape when compared to the rest of the country. This is a result of our fiscal policies and our attentiveness toward attracting new business growth to our state. Customers of Texas banks have nothing to fear."