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Media Contact:
Julianne Fisher Breitbeil
(202) 898-6895
jbreitbeil@fdic.gov
FDIC Seeks Comment on the Treatment of Reciprocal Deposits
The
Federal Deposit Insurance Corporation (FDIC) is seeking comment on a proposed
rule to implement Section 202 of the Economic Growth, Regulatory Relief, and
Consumer Protection Act (EGRRCPA) to exempt certain reciprocal deposits from
being considered as brokered deposits for certain insured institutions.
Under
the reciprocal deposit exception addressed in today’s proposed rule,
well-capitalized and well rated institutions are not required to treat
reciprocal deposits as brokered deposits up to the lesser of 20 percent of its
total liabilities or $5 billion.
Institutions that are not both well capitalized and well rated may also
exclude reciprocal deposits from their brokered deposits under certain
circumstances.
This
rulemaking is the first of a two-part effort the FDIC plans to take to revisit
the brokered deposit rules. For the
second part, the FDIC plans to seek comments later this year on the agency’s
overall brokered deposit and rate cap regulations.
“As
FDIC Chairman, I am currently undertaking a comprehensive review of FDIC
regulations and policies. A key part of
this process will be a reassessment of the agency’s brokered deposits
regulations and FAQs. Since the rules
were put in place, the industry has seen significant changes in technology,
business models, and product types, and later this year we will ask for public comment
on how best to update the rules to reflect such changes,” said FDIC Chairman
Jelena McWilliams.
Comments
on the proposed rule to implement Section 202 of EGRRCPA on reciprocal deposits
will be accepted for 30 days after publication in the Federal Register.
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Congress created the Federal Deposit Insurance Corporation in 1933 to restore public confidence in the nation’s banking system. The
FDIC insures deposits at the nation’s banks and savings associations, 5,542 as of June 30, 2018.
It promotes the safety and soundness of these institutions by identifying, monitoring and addressing risks to which they are exposed. The FDIC receives no federal tax dollars—insured
financial institutions fund its operations.
FDIC press releases and other information are available on the Internet at www.fdic.gov, by subscription electronically (go to www.fdic.gov/about/subscriptions/index.html)
and may also be obtained through the FDIC’s Public Information Center (877-275-3342
or 703-562-2200). PR-60-2018
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