Comments due on FDIC reciprocal deposits proposal
The FDIC has announced it 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 the 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 their 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 planned two-part effort to revisit the agency's 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. FDIC FIL-47-2018 includes additional information on the proposal. Comments will be accepted for 30 days following Federal Register publication.
UPDATE: Published at 83 FR 48562 on 9/26/2018, with comments due by 10/26/2018.