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FDIC amendments to simplify coverage determinations

The FDIC Board has approved amendments to two rules to simplify the process for making insurance determinations in the event a bank is placed into receivership.

Part 370 of the FDIC's Rules and Regulations, "Recordkeeping for Timely Deposit Insurance Determination," has been amended to address a number of issues. Most notably, it will now allow for an optional one-year extension of the rule's original compliance deadline of April 1, 2020. Other changes are more technical and are intended to address issues that became apparent as the FDIC staff worked with institutions to comply with Part 370 since it was first adopted in November 2016. The rule is currently applicable to the 32 FDIC-insured institutions that have more than two million deposit accounts and establishes recordkeeping requirements to facilitate rapid payment of insured deposits to customers if one of those institutions were to fail. The amendments to Part 370 will be effective October 1, 2019.

UPDATE: The amendments to Part 370 were published at 84 FR 37020 on 7/30/2019. As noted above, they will be effective 10/1/2019.

The FDIC also amended Part 330 of its Rules and Regulations, "Deposit Insurance Coverage," to expand the types of evidence it would consider when determining whether joint accounts qualify for increased deposit insurance coverage. This change affects all insured depository institutions regardless of size. The FDIC will continue to look to signature cards when determining deposit insurance coverage on joint accounts but may now also rely on other information contained in a bank's deposit account records that establishes co-ownership of a joint account, such as evidence that the institution has issued a mechanism for accessing the account to each co-owner or evidence of usage of the account by each co-owner.. This change does not expand or contract deposit insurance coverage for joint accounts and does not place any increased burden on depositors or FDIC-insured institutions. The amendment to § 330.9 of Part 330, which has been posted to BankersOnline's Regulations pages, will be effective 30 days after publication in the Federal Register.

UPDATE: The amendments to Part 330 were published at 84 FR 35022 on 7/22/2019, and they will be effective 8/21/2019.

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