Compliance question of the month: Under the revised physical signage rules issued by the FDIC, can my bank still vary the color and size of the signage?

My bank has a question about the new FDIC signage requirements, in particular about the FDIC FAQs regarding physical signage.

The answer to Question 4 appears to contradict itself. It states that banks may “display signs that vary from the official sign in size, color, or material” at any place the official is required or permitted. However, it then continues, that such signage “must not be smaller in size than the official sign, must have the same color for the text and graphics, and include the same content.” (emphasis added)

Currently, my bank has a single sign posted at each teller window that combines the USA Patriot Act notice, the bank’s funds availability notice, and the FDIC sign. The sign has a white background, and all lettering and graphics are black. The FDIC portion of this combined signage is a little smaller than the 7×3 dimensions.

Q Does the bank need to update its signs to comply with rule’s color requirement of black lettering on a gold background and make the FDIC portion 7×3 inches in size?

A It appears that the bank is compliant with the color requirements but not with the size requirements.

The answer to question 4 explains:

As has been the case traditionally, a bank may, at its expense, procure from commercial suppliers signs that vary from the official sign in size, color, or material and display those signs at any location where display of the official sign is required or permitted. However, any such varied sign that is displayed in locations where display of the official sign is required must not be smaller in size than the official sign, must have the same color for the text and graphics, and include the same content. (12 CFR § 328.3(b)(4).)

First, it states the sign may vary in color from the official sign so long as the sign has the same color for the text and graphics. Thus, for example, if the graphics are black, the lettering must be black. It does not mean that lettering must be black and the background gold.

Second, the FAQ reiterates the FDIC’s long-standing position that the official sign may not be smaller than 7×3 inches. It may, however, be larger, which is what it means by “differing in size.”  In this case, your bank may be in violation because its sign is smaller than 7×3 inches.

For more information, contact ABA’s Leslie Callaway.
Please note that this section is not a substitute for professional legal advice.