FDIC Seeks Comment on the Treatment of Reciprocal Deposits — 2018-09-13

The Federal Deposit Insurance Corporation (FDIC) is seeking comment on a proposed rule to implement Section 202 of the Economic Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA) to exempt certain reciprocal deposits from being considered as brokered deposits for certain insured institutions. Under the reciprocal deposit exception addressed in today’s proposed rule, well-capitalized and well rated institutions are not required to treat reciprocal deposits as brokered deposits up to the lesser of 20 percent of its total liabilities or $5 billion. Institutions that are not both well capitalized and well rated may also exclude reciprocal deposits from their brokered deposits under certain circumstances. This rulemaking is the first of a two-part effort the FDIC plans to take to revisit the brokered deposit rules. For the second part, the FDIC plans to seek comments later this year on the agency’s overall brokered deposit and rate cap regulations.