ICBA Seeks Broader Increase in Interest Rate Caps

Nov 05, 2019

ICBA called on the FDIC to expand on its proposed revisions to regulations on interest rate restrictions for less-than-well-capitalized institutions.

While ICBA commended the agency for its proposal to revise the national rate and the national rate caps to more closely reflect market rates, it urged the agency to increase it further to ensure less-than-well-capitalized banks can compete for funds.

ICBA also called on the FDIC to include credit union rates in the national rate cap and ensure that examiners no longer classify brokered deposits at well-capitalized banks as “volatile funding” simply because their interest rates exceed the national rate caps.

Read ICBA Comment Letter