FDIC Issues Proposed Rule On Brokered Deposits

On December 12, 2019, the Federal Deposit Insurance Corporation (FDIC) issued a notice of proposed rulemaking to revise the regulatory framework used to determine whether deposits qualify as "brokered" deposits (the Proposed Rule).¹ The Proposed Rule follows an advance notice of proposed rulemaking issued by the FDIC in December of 2018 (the ANPR).² This Advisory discusses the notable aspects of the Proposed Rule.

Although the Proposed Rule does not call for dramatic changes to the core components of the brokered deposit regulatory framework, it does attempt to clarify the status of certain funding arrangements that may not be addressed clearly by current FDIC interpretative guidance. The Proposed Rule also seeks to establish new administrative processes, including an application process for entities seeking an exception from brokered deposit status.