The FDIC today finalized long-awaited changes to modernize its existing brokered deposit rules and foster greater innovation by financial institutions.
Browsing: Brokered deposits
The FDIC would like to see a consistent interagency approach to Community Reinvestment Act rules, FDIC Chairman Jelena McWilliams said today during ABA’s Unconventional Convention.
As policymakers consider reforms to the three-decade-old brokered deposit rules, they should “think about what the appropriate guardrails are to mitigate the challenges that the brokered deposit law was put into place to address,” and how best to apply those guardrails to a modern banking system, said Mary Fowler, CEO of Peoples Bank in an American Banker op-ed today.
While the coronavirus pandemic has accelerated digital banking and deposit-taking, outdated laws stand in the way of a modern regulatory treatment of deposits, ABA President and CEO Rob Nichols wrote in an American Banker op-ed today.
Sen. Jerry Moran (R-Kan.) yesterday introduced an ABA-backed bill to replace current restrictions on brokered deposits with an asset growth restriction that ABA said better reflects today’s financial services environment.
In a comment letter to the FDIC today, ABA raised concerns that the agency’s recent proposal to modernize brokered deposit rules does not go far enough to narrow the definition of “deposit broker” and would continue to impose unnecessary costs on stable funding sources gathered through modern means.
The FDIC today issued a long-awaited proposal to modernize the existing brokered deposit rules and foster greater innovation by financial institutions.
FDIC Chairman Jelena McWilliams today previewed the long-awaited overhaul of the brokered deposit rule, which the agency is poised to propose on during its board meeting tomorrow.
Current laws and regulation related to brokered deposits—which were enacted three decades ago—are in “urgent need of modernization to ensure that banks are not prohibited from holding stable funding, engaging in modern business practices or serving the needs of their customers,” ABA wrote in a letter today to Rep. Gregory Meeks (D-N.Y.), who chairs the House Financial Services Subcommittee on Consumer Protection and Financial Institutions.
The FDIC is in the process of developing guidance for financial institutions on artificial intelligence…