FDIC Approves Final Rule to Simplify Process for Deposit Insurance Determinations

The FDIC approved a final rule amendment to simplify the procedure for making insurance determinations for banks placed into receivership.

As previously covered, the revisions to Part 370 (Recordkeeping for Timely Deposit Insurance Determination, and referred to as the "Rule") will (i) clarify the Rule's mandates, (ii) reduce regulatory burdens and (iii) make technical corrections.

The FDIC stated that, under the final amendment, the Rule will:

• include the option for a one-year extension of compliance if advance notification is provided to the FDIC;
• clarify the certification of compliance requirement;
• allow certain time periods to comply with the Rule following merger activity or changes in the law;
• provide the option of voluntary compliance;
• simplify the required actions when dealing with deposit accounts with transactional features insured on a pass-through basis;
• revise recordkeeping requirements involving certain types of deposit relationships; and
• improve the process for requested exceptions.

Amendments to Part 370 will become effective on October 1, 2019.