ICBA urges changes to brokered deposit proposal

ICBA urged the FDIC to update its proposal to revise restrictions on brokered deposits that apply to less-than-well-capitalized banks. While commending the agency for attempting to modernize its brokered deposit regulations, ICBA expressed concerns about the proposed “facilitation” definition for determining a deposit broker. 

Among its recommendations, ICBA encouraged the FDIC to narrow its definition to exclude third-party service providers and activities related to products, services, capabilities, direct depositor relationships, and matching and allocation services for broker-dealer sweep programs.