Summary:

The FDIC is extending the public comment period for its Notice of Proposed Rulemaking (NPR) for brokered deposits by 60 days to provide bankers and other interested parties additional time in light of challenges associated with COVID-19.

Statement of Applicability to Institutions with Total Assets Under $1 Billion: This Financial Institution Letter (FIL) applies to all FDIC-insured banks and savings associations, including community institution

Highlights:

• On December 12, 2019, the FDIC Board of Directors approved and published on its website proposed revisions to its regulations relating to the brokered deposits restrictions that apply to less than well capitalized insured depository institutions. The NPR was published in the Federal Register (85 FR 7453) on February 10, 2020. The NPR stated that the comment period would close on April 10, 2020.
• Specifically, among other things, under the proposed rule the FDIC would revise the definition of the "facilitation" prong of the "deposit broker" definition; provide that a wholly owned operating subsidiary be eligible for the insured depository institution (IDI) exception to the deposit broker definition under certain circumstances; and amend the "primary purpose" exception.
• The FDIC has received requests to extend the comment period to allow interested parties additional time to analyze the issues and to prepare comments to address the proposal by the FDIC.
• The FDIC is extending the end of the comment period to June 9, 2020.

Suggested Distribution:

FDIC-Insured Institutions

Suggested Routing:

Chief Executive Officer
Chief Financial Officer

Paper copies of FDIC FILs may be obtained through the FDIC's Public Information Center, 3501 Fairfax Drive, E-1002, Arlington, VA 22226 (1-877-275-3342 or 703-562-2200).