The board of the Federal Deposit Insurance Corporation (FDIC) approved a proposal that seeks to rescind the FDIC’s record keeping rule.
The record keeping rule, part 370, applies to insured depository institutions (IDIs) with two million or more deposit accounts. Under the proposal, the Large-Bank Deposit Insurance Determination Modernization rule, section 360.9, would be amended to generally apply to IDIs that are currently subject to part 370. The proposed amendments would relieve IDIs subject to part 370 from the requirement to build and maintain deposit insurance calculation systems. Also, the FDIC said it would better align the record keeping and reporting burdens and benefits applicable to such firms without materially impeding the FDIC’s ability to calculate deposit insurance.
“The policy objective of the proposal is to rebalance the FDIC’s framework for making prompt deposit insurance determinations in the event of a failure of a large insured depository institution (IDI),” states the notice.
The proposal would not impose new requirements or additional burdens on IDIs currently covered by section 360.9.
Part 370 and section 360.9 are intended to facilitate the FDIC’s ability to conduct a deposit insurance determination in the event of the failure of a bank with a large number of deposit accounts.
Comments on the proposal are due 60 days after the date of publication in the Federal Register.