On February 17, the Federal Deposit Insurance Corporation (FDIC) approved a proposal for recordkeeping requirements for FDIC-insured institutions with a large number of deposit accounts to facilitate rapid payment of insured deposits to customers if those institutions were to fail. The proposed rule would apply to insured depository institutions with more than 2 million deposit accounts. Under the proposal, these institutions would generally be required to maintain complete and accurate data on each depositor. Further, the institutions would be required to ensure that their information technology systems are capable of calculating the amount of insured money for each depositor within 24 hours of a failure. The FDIC is not proposing or considering making these requirements applicable to smaller institutions, including community banks.
The FDIC issued an advanced notice of proposed rulemaking on deposit account recordkeeping for institutions with a large number of deposit accounts in April 2015 to solicit public comment, and had noted, “That feedback helped shape the proposal issued today.”
The FDIC will accept comments on the proposal for 90 days after it is published in the Federal Register.
The FDIC’s notice is available here.