"Assessment revenue continued to be the primary driver of the increase, adding $3.3 billion to the DIF balance," the FDIC said in a statement issued on Monday. "Interest earned on investment securities, negative provisions for insurance losses, and unrealized gains on securities also contributed a combined $2.1 billion to the fund, partially offset by operating expenses of $570 million."

The increase in the reserve ratio was driven by slow growth in insured deposits and the increase in the fund's balance, the FDIC said in the statement. The regulator said insured deposits grew by 0.1% during the third quarter.

The Deposit Insurance Fund insures the deposits and protects the depositors of insured banks, and resolves failed banks, according to the FDIC website. It is funded by assessments on FDIC-insured institutions and interest earned on funds invested in U.S. government obligations.

Bloomberg reported Monday that the FDIC has been rebuilding the Deposit Insurance Fund since 2020, when the reserve ratio dropped below the level required by law amid a surge in deposits.

The FDIC said in May that it expects the fund to reach its legal target ratio by the end of the year, according to the report.

It was reported Oct. 29 that lawmakers from both parties want big banks to up their insured deposit limits from the current $250,000.

Midsized banks argued that higher caps would prevent bank runs like the ones seen at Silicon Valley Bank and Signature Bank in March 2023.

Their efforts have helped lead to a Senate bill that proposes increasing the insurance limit up to $10 million on certain accounts, such as those normally used by businesses for payroll and other operational expenses.