FDIC Finalizes Deposit Insurance Recordkeeping Changes

Jul 17, 2019
The FDIC board of directors approved amendments to two rules to simplify the process for making insurance determinations in the event a bank is placed into receivership. One change, which applies only to the 32 institutions with more than 2 million deposit accounts, would facilitate the payment of insured deposits to customers if the institution were to fail.

The second update, which applies to all FDIC-insured institutions, expands the types of evidence the FDIC would consider when determining whether joint accounts qualify for increased deposit insurance coverage. The agency will continue to look to signature cards when determining deposit insurance coverage on joint accounts, but it may now also rely on other information contained in a bank's deposit account records to establishes co-ownership of a joint account.

The agency also advanced a notice of proposed rulemaking to amend its securitization safe harbor rule, which relates to the treatment of financial assets transferred in connection with a securitization or participation. The proposal would remove a disclosure requirement on compliance with the Securities and Exchange Commission's Regulation AB to facilitate the availability of mortgage credit.