FDIC Extends Comment Period for Rule Proposal on Brokered Deposit Restrictions
The FDIC extended the comment period from October 22, 2024, to November 21, 2024, on a proposal to amend rules concerning restrictions on brokered deposits for insured depository institutions ("IDIs) that are not well-capitalized. (See previous coverage.)
The FDIC proposal would:
- modify the definition of "deposit broker" and revise the interpretation of the "primary purpose" exception related to this definition;
- update two specific business relationships under the primary purpose exception and alter the notification and application procedures for this exception; and
- clarify when an insured depository institution can regain its status as an "agent institution" under the limited exception for a capped amount of reciprocal deposits.
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