Trade Associations Support FDIC Deposit Recordkeeping Proposal

The American Bankers Association today joined the Consumer Bankers Association and the Bank Policy Institute in a letter to the FDIC supporting a recent proposal to change Part 330 of its deposit insurance regulations. The proposed changes would update the requirements for verifying participants in joint deposit account.

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. “The flexibility to rely on deposit account record systems, which are critical to the fundamental business of the institution, would significantly improve the alignment between current customers service standards and the FDIC’s deposit insurance regulations,” the associations said.

In addition to offering support for the proposal, the groups urged the FDIC to consider a comprehensive review of its deposit insurance regulations to ensure they are keeping pace with advancements in technology and are properly aligned with banks’ current recordkeeping practices.