FDIC Board Approves Final Rule on Deposit Account Recordkeeping Requirements to Facilitate Timely Access to Deposits in Large Bank Failures

The Federal Deposit Insurance Corporation (FDIC) today approved a final rule establishing recordkeeping requirements for FDIC-insured institutions with a large number of deposit accounts to facilitate rapid payment of insured deposits to customers if the institutions were to fail.
The rule applies to insured depository institutions with more than 2 million deposit accounts, and generally requires these institutions to maintain complete and accurate data on each depositor. Further, the institutions are required to ensure that their information technology (IT) systems are capable of calculating the amount of insured money for most depositors within 24 hours of a failure.
Currently there are 38 institutions with more than 2 million deposit accounts. The rule allows these institutions three years to develop the recordkeeping and IT systems required for compliance.
"Timely access to insured deposits is critical to maintaining public confidence in the banking system," FDIC Chairman Martin J. Gruenberg said. "This rule bolsters the FDIC's ability to provide depositors at banks with a large number of deposit accounts the same rapid access to their insured funds in the case of a failure as the FDIC does in smaller resolutions."The FDIC received comments on the proposed rule that covered institutions could have difficulty meeting the new recordkeeping requirements with respect to certain deposit accounts, including trust deposits, brokered deposits, and other accounts that qualify for "pass through" deposit insurance coverage. The final rule, therefore, establishes alternative requirements for these accounts and also permits institutions to develop systems that process these accounts during a longer period after a failure, except for certain accounts that have transactional features. Additional modifications in response to comments include an extension of the compliance period and the simplification of the process to consider exemptions from portions of the rule.