A rule would be rescinded that requires banks with $2 million or more in deposits maintain detailed records and calculate deposit insurance coverage within 24 hours of a bank’s failure, under a proposal the federal bank deposit insurance agency issued Friday.
According to the Federal Deposit Insurance Corp. (FDIC) its board voted to issue a notice of proposed rulemaking (NPR) that is aimed at rescinding the agency’s part 370 recordkeeping rule. Specifically that rule requires the banks to keep detailed depositor records and to configure their information technology (IT) systems to calculate deposit insurance coverage by ownership right and capacity within 24 hours of a bank’s failure.
The proposal, the FDIC said, would ease banks’ subject to part 370 from a requirement to build and maintain deposit insurance calculation systems. It would also, the agency said, “better align the recordkeeping and reporting burdens and benefits applicable to such firms without materially impeding the FDIC’s ability to calculate deposit insurance.”
Comments on the proposal are due 60 days after the date of publication in the Federal Register.
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