FDIC Proposes Changes to Large Bank Deposit Recordkeeping Requirements

The FDIC board today approved two proposals to resolve workability issues with its deposit insurance regulations.

The first proposal would amend Part 370 of the FDIC’s regulations for “recordkeeping for timely deposit insurance determination,” which requires banks with at least two million deposit accounts to upgrade deposit recordkeeping so that FDIC could use the system of a subject bank to made deposit insurance determinations in the event of failure. The amendments incorporate several changes recommended by the American Bankers Association and provide an optional one-year compliance extension from the rule’s original deadline of April 1, 2020.

The agency also approved changes to Part 330 of the its regulations—which applies to all banks—to update the requirements for verifying participants in joint deposit accounts. While current rules rely on physical signature cards or electronic signatures to authenticate account holders, the proposal would additionally accept usage of the account as verification.

Comments on both proposals are will be due 30 days after publication in the Federal Register.