FDIC Unveils Resource Page on Brokered Deposits, National Rate Cap

With the FDIC’s new rules on brokered deposits and interest rate restrictions now in effect, the agency this week unveiled a new resource page on its website where financial institutions can find information on the brokered deposit regulations and the new methodologies it uses for calculating the national rate cap.

The new rules—which were finalized in December—narrow the definition of “deposit broker,” and also designate certain business relationships and services that meet the rule’s “primary purpose exemption,” and do not require an application to the FDIC. The rule also provides that entities with exclusive deposit placement arrangements with one bank are not deposit brokers. With respect to the national rate cap, the FDIC would include credit unions in the data that backs the national rate and incorporate Fed funds and Treasury rates into the national rate cap.

Among the resources on the site are FAQs on the brokered deposits rule, instructions for primary purpose exception submissions, information on national rates and rate caps, a compliance guide for small entities and previous FDIC staff interpretations that are set to be phased out in 2022.