FDIC Commences Rulemaking Process to Review Approach to Brokered Deposit Regulation

On December 18, 2018, the Federal Deposit Insurance Corporation (FDIC) issued an Advance Notice of Proposed Rulemaking (ANPR) seeking comment on the regulatory approach to brokered deposits and the interest rate caps applicable to banks that are less than well capitalized. The FDIC for some time has been exploring the extent to which the current regulatory approach for brokered deposits requires reform. The ANPR’s indication that the agency is “undertaking a comprehensive review” of the approach signals the start of an extensive rulemaking process that should result in significant changes to the way brokered deposits are identified and regulated. Comments must be submitted to the FDIC within 90 days after the ANPR is published in the Federal Register.