FDIC Proposes New Rule Clarifying Federal Interest Rate Authority — 2019-11-19

Proposal to address marketplace uncertainty following 2015 court opinion WASHINGTON – The Federal Deposit Insurance Corporation’s Board of Directors is proposing a new rule to clarify the Federal law governing interest rates state banks may charge their customers. The FDIC’s proposal is intended to address marketplace uncertainty in the wake of a 2015 court ruling that called into question the enforceability of interest rate terms following the sale or assignment of a loan originated by a national bank to a third-party non-bank. The FDIC’s proposal would codify legal guidance the agency has relied upon for more than 20 years regarding interest rates that may be charged by State-chartered banks and insured branches of foreign banks.