Op-ed calls for reforms to FDIC proposed brokered deposit rules

Shon Myers, president and CEO of Farmers and Merchants Bank in Miamisburg, Ohio, called for a regulatory or legislative fix to the FDIC’s proposed brokered deposit definition, calling it “exceedingly broad” and warning that it could result in “higher insurance fund premiums and a reputational stain on an institution’s name” that impedes the bank’s efforts to serve customers.

In a new op-ed in The Hill Myers called for the FDIC to revise its proposed brokered deposits rule to exclude certain third parties and stable sources of funds from the “brokered deposits” definition or for Congress to replace Section 29 of the Federal Deposit Insurance Act with a “cap” on asset growth for troubled institutions.

ICBA is urging community bankers to tell the FDIC to change its proposed regulations on what constitutes a brokered deposit. ICBA's Be Heard grassroots action center offers a custom letter that community bankers can use to tell the agency that its proposal is too broad and places undue limits on community banks. Contact Congress today.