The FDIC requested comments on a proposed rule that would allow certain insured depository institutions to be exempt from the requirement to treat reciprocal deposits as brokerage deposits.
Pursuant to Section 202 of the Economic Growth, Regulatory Relief, and Consumer Protection Act, the FDIC must conform its current regulation to allow certain institutions to exempt reciprocal deposits from being treated as brokerage deposits if they meet (i) $5 billion or (ii) an amount equal to 20 percent of an institution's total liabilities. The proposal also confirms that institutions that do not meet this cap may qualify for the exemption under certain circumstances.
The FDIC stated that this proposal is the first of two parts of an effort to reevaluate the brokered deposit rules. The second part will be issued later this year and will seek comments on the brokered deposit regulations more generally.
The FDIC will solicit comments on the proposed rule for 30 days after its publication in the Federal Register.
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