Regulatory Alerts2021-01-22 | 2020-28196Unsafe and Unsound Banking Practices: Brokered Deposits and Interest Rate Restrictions
The Federal Deposit Insurance Corporation (FDIC) issued a final rule modernizing brokered deposit and interest rate restrictions for less than well-capitalized insured depository institutions. The regulation establishes a new analytical framework for the deposit broker definition, clarifying how third parties facilitate deposits and qualify under the primary purpose exception. Additionally, the FDIC amended its national and local market rate cap calculation methodologies and clarified the solicitation and acceptance rules for nonmaturity deposits to reflect current banking practices.
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