FDIC Approves Large Bank Deposit Recordkeeping Proposals

The FDIC today approved two long-awaited final rules to resolve workability issues with its deposit insurance regulations.

The first of the final rules amends 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 the FDIC could use the system of a subject bank to make deposit insurance determinations in the event of failure. The final rule provides an optional one-year compliance extension from the rule’s original deadline of April 1, 2020, and includes several additional changes advocated for by ABA.

The agency also finalized changes to Part 330 of the regulations—which apply to all banks—to update the requirements for verifying participants in joint deposit accounts. Currently, the rules require banks to rely on physical signature cards or electronic signatures to authenticate account holders. Under the final rule, banks may accept usage of the account as verification. The final rule takes effect 30 days after publication in the Federal Register.