Recordkeeping for Timely Deposit Insurance Determination
The FDIC is seeking comment on a proposed rule that would to make certain substantive revisions to “Recordkeeping for Timely Deposit Insurance Determination,” to clarify the rule’s requirements, better align the burdens of the rule with its benefits, and make technical corrections.
The policy objective of the proposed rule is to reduce compliance burdens for insured depository institutions (IDIs) covered by the FDIC’s rule entitled “Recordkeeping for Timely Deposit Insurance Determination” (part 370 of the Rule) while continuing to support the FDIC’s ability to promptly determine deposit insurance coverage in the event a covered institution fails. Part 370 requires each IDI with two million or more deposit accounts (each a covered institution) to (1) configure its information technology system (IT system) to be capable of calculating the insured and uninsured amount in each deposit account by right and capacity, for use by the FDIC in making deposit insurance determinations in the event of the institution’s failure, and (2) maintain complete and accurate information needed by the FDIC to determine deposit insurance coverage with respect to each deposit account, except as otherwise provided. After the Rule was adopted and while covered institutions began preparing to implement it, the FDIC received feedback from covered institutions, industry consultants, information technology service providers, and agents placing deposits on behalf of others, who identified components of the Rule that are insufficiently clear or unduly burdensome. The proposed rule addresses these issues by: Establishing the option to extend the part 370 compliance date for certain institutions; simplifying the process for requesting exception from the Rule’s requirements; amending the scope of certain provisions; and making technical amendments. The proposed amendments are likely to reduce compliance burdens for covered institutions while still ensuring that covered institutions implement the recordkeeping and IT system capabilities needed by the FDIC to make a timely deposit insurance determination for an IDI of such size and scale.
|Date proposed:||April 2, 2019|
|Comments due date:||May 13, 2019|
|Final rule effective date:||
|Rule compliance date:|
|Related Reg Report item(s):||Recordkeeping to support timely deposit insurance determinations would be less burdensome under proposal, FDIC says|