FDIC Board to consider ’24 budget, final rule on signage, advertising of insured status at meeting this week

The 2024 spending plan for the federal bank deposit insurance agency will be up for consideration when its board meets Wednesday at 2 p.m. ET, the agency said Monday.

The Federal Deposit Insurance Corp. (FDIC) will also consider a final rule on official signs and advertising requirements at member banks about their federal insurance coverage status. The final rule will also cover false advertising, misrepresentation of insured status, and misuse of the FDIC’s name or logo, the agency said.

For 2023, the FDIC Board increased its budget by 6.5%. The agency said then that the increase largely funded efforts to compensate its workforce and recruit new workers. It also authorized “220 new positions primarily to carry out the FDIC’s bank supervision and other core mission responsibilities,” the agency said.

The advertising rule was proposed about a year ago. It aimed at differentiating federally insured bank deposits from non-insured savings, such as those from financial products offered by non-federally insured financial firms, including fintechs.

The proposal would require the use of signs that differentiate insured deposits from non-deposit products across banking channels and disclose to consumers that certain financial products are not “insured by the FDIC, are not deposits, and may lose value.”

The proposal would also, the agency said last year, clarify its regulations regarding misrepresentations of deposit insurance coverage by addressing specific scenarios where persons or entities provide information to consumers that may be misleading and confuse consumers as to whether they are doing business with a bank and whether their funds are protected by deposit insurance.

FDIC: Sunshine Act Meeting