Featured Product

    FDIC Amends Rule on Timely Deposit Insurance Determination

    July 30, 2019

    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

    Related Articles

    BoE Clarifies Approach to Treatment of Payment Holidays on Form PL

    BoE published a statistical notice (Notice 2020/9) explaining the approach for treatment of payment holidays on the profit and loss return or Form PL.

    August 11, 2020 WebPage Regulatory News

    BoE Provides Reporting Update on Form AS and Form FV

    BoE updated the known issues document for the statistical reporting Forms AS and FV.

    August 10, 2020 WebPage Regulatory News

    FED Announces Capital Requirements for Large Banks

    FED announced individual capital requirements for 34 large banks and these requirements go into effect on October 01, 2020.

    August 10, 2020 WebPage Regulatory News

    SRB Publishes Guidance on Implementation of Bail-In Tool

    SRB published a set of documents to give operational guidance to banks on implementation of the bail-in tool.

    August 10, 2020 WebPage Regulatory News

    BIS Publishes Update on G20 TechSprint Initiative

    BIS published an update on the G20 TechSprint Initiative, which was launched in April 2020 and aims to highlight the potential for technologies to resolve regulatory compliance (regtech) and supervisory (suptech) challenges.

    August 10, 2020 WebPage Regulatory News

    OSFI Provides Update on Implementation of IFRS 17 in Canada

    OSFI published a letter that provides an update on the milestones for the implementation of the IFRS 17 standard on insurance contracts.

    August 07, 2020 WebPage Regulatory News

    EBA Provides Clarity on Implementation of Guidance on COVID Reporting

    EBA updated the report on the implementation of selected COVID-19 policies.

    August 07, 2020 WebPage Regulatory News

    FSI Note Discusses Challenges Associated with COVID Relief Measures

    The Financial Stability Institute (FSI) of BIS published a brief note that examines the supervisory challenges associated with certain temporary regulatory relief measures introduced by BCBS and prudential authorities in response to the COVID-19 pandemic.

    August 06, 2020 WebPage Regulatory News

    BCBS Consults on Principles for Operational Risk and Resilience

    BCBS is consulting on the principles for operational resilience and the revisions to the principles for sound management of operational risk for banks.

    August 06, 2020 WebPage Regulatory News

    BoE Updates Template and Definitions for Form ER

    BoE updated the reporting template for Form ER as well as the Form ER definitions, which contain guidance on the methodology to be used in calculating annualized interest rates.

    August 05, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 5650