FDIC Updates Resources For Revised Brokered Deposits Regulation

• Published date: 09 July 2021
• Subject Matter: Finance and Banking, Financial Services
• Law Firm: Cadwalader, Wickersham & Taft LLP
• Author: Mr Cadwalader, Wickersham & Taft LLP

The FDIC added information on recent revisions to brokered deposits regulation and interest rate restrictions to the Brokered Deposits webpage of the agency's Banker Resource Center.

The revisions to the brokered deposits regulation and interest rate restrictions became effective on April 1, 2021. (Compliance with the rule is required by January 1, 2022.) For brokered deposits, the final rule establishes a new framework for analyzing certain provisions of the "deposit broker" definition, including "facilitating" and "primary purpose." For the interest rate restrictions, the FDIC is amending its methodology for calculating the national rate, the national rate cap, and the local market rate cap. Further, the FDIC is explaining when nonmaturity deposits are accepted and when...