Regulatory Alerts2020-02-10 | 2019-28275Unsafe and Unsound Banking Practices: Brokered Deposits Restrictions
The Federal Deposit Insurance Corporation proposes revisions to its regulations governing brokered deposit restrictions for less than well-capitalized insured depository institutions. The proposed rule establishes a new framework for analyzing the 'deposit broker' definition, specifically addressing 'facilitating' and 'primary purpose' provisions, and creates an application process for the primary purpose exception. These changes aim to modernize regulations to reflect technological innovations and clarify how third-party deposit placement arrangements are classified under current law.
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