FDIC Board Approves Final Rule on Brokered Deposit and Interest Rate Restrictions — 2020-12-15

WASHINGTON – The Federal Deposit Insurance Corporation (FDIC) Board of Directors today approved a final rule to establish a new framework for analyzing whether deposits made through deposit arrangements qualify as brokered deposits, including those between insured depository institutions (IDIs) and third parties, such as financial technology companies. The final rule also amends the methodology for calculating the interest rate restrictions that apply to less than well capitalized IDIs. “The new framework for brokered deposits would achieve several objectives,” said FDIC Chairman Jelena McWilliams. “First, the framework would create a more transparent and consistent regulatory approach by establishing bright line tests for the ‘facilitation’ prong of the deposit broker definition and a consistent process for application of the primary purpose exception. Second, the final rule would encourage innovation in how banks offer services and products to customers by reducing obstacles to certain types of partnerships.