FDIC Extends Comment Period on Modernizing Brokered Deposit Restrictions — 2020-04-03

WASHINGTON – In light of the challenges associated with COVID-19, the Federal Deposit Insurance Corporation (FDIC) today announced that it will extend the public comment period for its proposed rule to modernize its brokered deposit regulations by 60 days. Interested parties responding to FDIC's Notice of Proposed Rulemaking on Brokered Deposit Restrictions Applicable to Less Than Well Capitalized Banks may now submit comments through June 9, 2020. Read FDIC's notice. On December 12, 2019, the FDIC Board of Directors approved and published on its website proposed revisions to its regulations relating to the brokered deposits restrictions that apply to less than well capitalized insured depository institutions. Through this proposed rule, the FDIC would establish a new framework for analyzing whether deposits placed through deposit placement arrangements qualify as brokered deposits.