Highlights:
-
Section 627of the DFA repealed the statutory prohibition against the payment
of interest on demand deposits, effective July 21, 2011. To conform its
regulations to this DFA provision, the FDIC proposes to rescind 12 CFR Part
329, the regulation that implements the prohibition against paying interest
on demand deposits with respect to insured state-chartered, nonmember banks,
also effective July 21, 2011.
-
A regulatory definition of "interest" will still be useful, however, in
interpreting the DFA requirements providing temporary, unlimited deposit
insurance coverage for noninterest-bearing transaction accounts.
-
The FDIC therefore proposes to also transfer the definition of "interest"
currently found at Part 329 to Part 330.
-
The FDIC seeks comment on every aspect of this proposed rule.
Distribution:
FDIC-Insured Institutions
Suggested Routing:
Chief Executive Officer
Chief Financial Officer
Head of Deposit and Branch Operations
Chief Compliance Officer
Training Officer
Regulatory Report Preparer
Related
Topics:
Interest On Deposits
12 C.F.R. Part 329
Deposit Insurance Coverage
12 C.F.R. Part 330
Attachment:
Notice of
Proposed Rulemaking
Contact:
Mark Mellon, Counsel, at mmellon@fdic.gov
or (202) 898-3884; or Martin Becker, Senior Consumer Affairs Specialist, at MBecker@fdic.gov or (202) 898-6644.
Note:
FDIC financial institution letters (FILs) may be accessed from the FDIC's Web
site at www.fdic.gov/news/news/financial/2011/index.html.
To receive FILs electronically, please visit http://www.fdic.gov/about/subscriptions/fil.html.
Paper copies of FDIC financial institution letters 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).
|