TBS News

TBS Resource Center: Navigating the FDIC Brokered Deposit Rule

On December 15, 2020, the FDIC issued its final rule revising its regulation regarding brokered deposits.  TBS has been actively engaged with regulators, banks and financial intermediates as the rule has been finalized and further clarification is underway.

TBS has created this Resource Center as a single destination for industry participants to access FDIC FAQ updates, information on the TBS response, and other relative news to help you navigate the new rule.  Check back often as new updates will be added as they are forthcoming.

ABOUT THE RULE

The rule amends the brokered deposit regulation to elaborate on the ‘facilitation’ prong of the deposit broker definition and to provide clarity about the availability of the Primary Purpose Exception (PPE).  For sweep program participants, the final rule specifies elements that must be included in a sweep program to permit banks to treat the deposits as non-brokered.   The amendment to the brokered deposit regulation became effective as of April 1, 2021, with an extended compliance date of January 1, 2022 for institutions that continue to rely on previous staff opinions. After January 1, 2022, full compliance with the regulation is required.

 

FDIC BROKERED DEPOSIT RESOURCE CENTER

FDIC Banker Resource Center re:  Brokered Deposits

–        Questions and Answers Related to Brokered Deposits Rule

–        Process for Primary Purpose Exception (PPE) – Notice, Application and Reporting

–        FDIC National Rates and Rate Caps

 

 

OTHER FDIC RESOURCES

February 23, 2021 FDIC Financial Institutions Letter re: New Call Report Data Items for Sweep Deposits Beginning with June 30, 2021 Call Reports
January 22, 2021

Final Rule Published in Federal Register, 86 Fed. Reg. 6742

December 15, 2020

FDIC Brokered Deposits Rule Press Release

 

TOTAL BANK SOLUTIONS IS HERE TO HELP

Does your financial institution need more help understanding the implications of the rule or creating a path to compliance?  The insured deposit experts at TBS are here to help.  You can reach us at info@totalbanksolutions.com.