​FDIC Seeks Comment on Insured Deposit Determination at Large Banks

To help the FDIC determine promptly whether deposits are insured or not after a bank fails, the FDIC today requested comment on a proposed set of new recordkeeping standards for large banks — those with more than 2 million deposit accounts.

The proposal would apply to 37 of the country’s largest banks, the agency estimated. It would shift the burden of making determinations from the FDIC to the insured institutions, using the systems, data and staff of the failed bank to calculate the insured and uninsured amounts for each deposit account at the end of any business day.

“Rendering insurance determinations and making accurate and prompt payments can be increasingly more difficult when the FDIC is without time to gather necessary data and prepare for the failure,” said FDIC Director Jeremiah Norton. “Requiring the availability of necessary data, including potentially requiring banks to be able to state each customer’s level of insured deposits would improve accuracy and efficiency in the event of rapid resolutions in the future.”

FDIC personnel briefed ABA staff immediately following the agency’s board meeting, and ABA will facilitate further conversations among bankers and agency staff. Comments on the advance notice of proposed rulemaking are due 90 days after it is published in the Federal Register. For more information, contact ABA’s Robert Strand.