The FDIC board has approved a final rule requiring banks with more than 2 million deposit accounts to upgrade their deposit recordkeeping systems to facilitate the determination of FDIC insured deposits in the event of a bank failure. Under the rule, the FDIC will use the failing bank’s systems, data and staff to calculate the insured and uninsured amounts for each depositor and place holds on portions of uninsured deposits. To comply with the rule, these banks will be required to collect and maintain more detailed depositor information and make upgrades to their IT systems to ensure that they are able to calculate many types of insured deposits within 24 hours of failure.
In response to feedback from ABA and other associations, the final rule includes alternative requirements for a number of accounts, including certain trusts, brokered deposits and lawyers’ trust accounts for which it would be difficult to compel accountholders to provide personal identification information about the ultimate owners of the funds. The FDIC also extended the timeline for banks to comply with the rule, also in response to banker concerns. Affected institutions – currently 38 of the country’s largest banks – will now have three years to comply with the final rule instead of two.
Read the final rule.