FDIC is amending the rule entitled “Recordkeeping for Timely Deposit Insurance Determination” (part 370) to clarify certain requirements, better align the burdens of the rule with the benefits, and make technical corrections. The rule will be effective from October 01, 2019. The policy objective of the final rule is to reduce compliance burdens for insured depository institutions covered by the FDIC rule (part 370) while maintaining its benefits and continuing to support the ability of FDIC to promptly determine deposit insurance coverage in the event such an insured depository institution fails.
Part 370 requires each insured depository institution with two million or more deposit accounts to
- Configure its information technology (IT) system to be capable of calculating the insured and uninsured amount in each deposit account by right and capacity, for use by FDIC in making deposit insurance determinations in the event of the failure of a covered institution
- Maintain complete and accurate information needed by FDIC to determine deposit insurance coverage with respect to each deposit account, except as otherwise provided
FDIC is amending part 370 in advance of the compliance date for the original covered institutions. FDIC is making the following changes to part 370 that, among other things:
- Include an optional one-year extension of the compliance date on notification to FDIC
- Provide clarifications about compliance certification and the effect of a change in law or a merger transaction on compliance
- Enable insured depository institutions that are not covered institutions to voluntarily become covered institutions under part 370 and be released from the provisional hold and standard data format requirements of § 360.9
- Revise the actions that must be taken by a covered institution with respect to deposit accounts with "transactional" features that are insured on a pass-through basis
- Amend the alternative record-keeping requirements for certain types of deposit relationships
- Clarify the process for requesting exception from requirements of the rule, provide for published notice of the FDIC responses, and provide that certain exceptions may be deemed granted
- Make corrections and technical and conforming changes
On April 11, 2019, FDIC had proposed to amend part 370 to provide for elective extension of the compliance date, revise the treatment of deposits created by credit balances on debt accounts, modify the requirements relating to accounts with transactional features, change the procedures regarding exceptions, and clarify matters related to certification requirements. In the proposal, FDIC also proposed certain technical changes to part 370. It was the belief of FDIC that this proposal would better align the burdens imposed by part 370 on covered institutions with the benefit of better enabling FDIC to achieve its statutory obligations and policy objectives. The comment period on the proposal ended on May 13, 2019. FDIC received five comment letters, which it considered when developing the final rule.
Related Link: Federal Register Notice
Effective Date: October 01, 2019
Keywords: Americas, US, Banking, Deposit Insurance, Part 370, Recordkeeping, Covered Institutions, Technical Amendments, Insured Depository Institutions, FDIC
Previous ArticleFASB Consults on Interactions Among Topics 321, 323, and 815
BIS Innovation Hub published the work program for 2021, with focus on suptech and regtech, next-generation financial market infrastructure, central bank digital currencies, open finance, green finance, and cyber security.
In an article published by SRB, Mairead McGuinness, the European Commissioner for Financial Services, Financial Stability, and Capital Markets Union, discussed the progress and next steps toward completion of the Banking Union.
EBA finalized the two sets of draft regulatory technical standards on the identification of material risk-takers and on the classes of instruments used for remuneration under the Investment Firms Directive (IFD).
EC published, in the Official Journal of the European Union, a notification that the European Court of Auditors (ECA) has published a special report on resolution planning in the Single Resolution Mechanism.
BoE published a scenario against which it will be stress testing banks in 2021, in addition to setting out the key elements of the 2021 stress test, guidance on the 2021 stress test, and the variable paths for the 2021 stress test.
PRA published a consultation paper (CP3/21) proposes rules regarding the timing of identity verification required for eligibility of depositor protection under the Financial Services Compensation Scheme (FSCS).
FSB published the work program for 2021, which reflects a strategic shift in priorities in the COVID-19 environment.
FCA announced that 50% firms have started using the new data collection platform RegData, which is slated to replace the existing platform known Gabriel.
Bundesbank published Version 5.0 of the derivation rules for completeness check at the form level, with respect to the data quality of the European harmonized reporting system.
FED finalized a rule that updates capital planning requirements to reflect the new framework from 2019 that sorts large banks into categories, with requirements that are tailored to the risks of each category.