The FDIC adopted a final rule to permit FDIC-insured financial institutions "to except a capped amount of reciprocal deposits from treatment as brokered deposits for certain insured depository institutions." Separately, the FDIC requested comments on all aspects of its brokered deposit and interest rate regulations.
The FDIC amended its regulations on brokered deposits and interest rate transactions to conform to changes required by Section 202 of the Economic Growth, Regulatory Relief and Consumer Protection Act concerning reciprocal deposits. The final rule will also make conforming amendments to regulations that govern deposit insurance assessments. The final rule will become effective 30 days following its publication in the Federal Register.
The FDIC is also evaluating its approach to brokered deposits and interest rate caps applicable to banks that are less than "well capitalized." According to the FDIC, a significant part of the FDIC's review is to better understand the impact of changes to the financial services industry and changes to the economic environment on interest rate restrictions. Comments must be submitted no later than 90 days following publication in the Federal Register.
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