FDIC Reminds Financial Institutions to Correct their Call Reports
Commentary by Steven Lofchie
The FDIC reminded insured depository institutions on requirements for reporting estimated uninsured deposits.
In a Financial Institution Letter, the FDIC said that certain financial institutions with total assets of $1 billion or more failed to report uninsured deposits as required on their Consolidated Reports of Condition and Income ("Call Reports"). The FDIC stated further, that certain banks had incorrectly (i) reduced the amounts to the extent that "the uninsured deposits are collateralized by pledged assets" and/or (ii) reduced the amount reported on Schedule RC-O by leaving out intercompany deposit balances of subsidiaries.
The FDIC recommended that applicable financial institutions review reporting instructions on estimated uninsured deposits on the FDIC Call Reports webpage.
Commentary
Presumably, the banking regulators are paying a good bit more attention to reports of uninsured deposits in the wake of recent bank failures. Such deposits may be expected to flee very quickly in the case of a negative news event as to the relevant bank.