The FDIC's mission to maintain stability and public confidence in the nation's financial system can be accomplished by providing access to insured funds as soon as possible. A quick access by depositors to their funds at certain level shortly after a bank failure may be accomplished before the deposit insurance determination can be completed if the bank fails unexpectedly with no time for pre-failure planning activities.
To ensure that depositors have access to their funds as soon as possible, the FDIC adopted the Large‐Bank Deposit Insurance Determination Modernization Rule (12 C.F.R. § 360.9) in August 2008. In the event of a failure, the rule allows the FDIC to give depositors uninterrupted access to preliminary insurance funds, while the FDIC works to complete the final insurance determination. The FDIC will use a 12 C.F.R. § 360.9 covered institution’s provisional hold capabilities to achieve this.
The Large‐Bank Deposit Insurance Determination Modernization Rule applies to about 120 institutions, which include insured depository institutions having at least $2 billion in deposits and at least either 250,000 deposit accounts or $20 billion in total assets.
See Federal Register notice Vol. 73; No. 138; July 17, 2008 for the requirements of the rule or contact the FDIC at drrlargebnkdeprule@FDIC.gov.