Regulatory Alerts2026-03-23 | 2026-05652Clarification of Deposit Insurance Coverage for U.S. Bank Branches in the Federated States of Micronesia, Marshall Islands, and Palau
The Federal Deposit Insurance Corporation issued a final rule amending 12 CFR part 330 to extend deposit insurance coverage to all branches of U.S.-insured depository institutions in the Federated States of Micronesia, the Marshall Islands, and Palau. By removing the prior "legacy branches" limitation, the FDIC now treats these locations as domestic offices for insurance purposes, ensuring that dually payable deposits in both existing and newly established branches are fully insured. This regulatory update aligns current policy with historical practice, supports competitive banking growth in the Freely Associated States, and imposes de minimis costs on the Deposit Insurance Fund.
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