FDIC Proposes Better Process for Deposit Insurance Determinations

The FDIC proposed to amend two rules to streamline the process for making insurance determinations if a bank is placed into receivership.

The FDIC requested feedback on a proposal to make revisions to Part 370 (Recordkeeping for Timely Deposit Insurance Determination) before the compliance date - April 1, 2020. According to the FDIC, the proposal (i) clarifies the rule's mandates, (ii) better aligns the "burdens of the rule with its benefits" and (ii) makes technical corrections.

In addition, the FDIC proposed to amend Part 330 (Deposit Insurance Coverage), which requires an account to be "separately insured as a joint account." The FDIC proposal would supply an alternative method to meet the "signature card" requirement.

The proposal would permit the signature card requirement to be met by information contained in the deposit account records of the insured depository institution "establishing co-ownership of the deposit account." The FDIC said that the proposed rule would not impact the general provisions in the FDIC's deposit insurance rules with respect to the recognition of deposit ownership.

Comments on the proposal to amend Part 330 and Part 370 must be submitted to the FDIC no more than 30 days following publication in the Federal Register.