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Federal Deposit
Insurance Corporation

Each depositor insured to at least $250,000 per insured bank

Large-Bank Deposit Insurance Determination Modernization FAQs

General Questions

What is a Covered Institution for the purposes of this rule?

The rule applies to insured depository institutions having at least $2 billion in domestic deposits and at least either: (1) 250,000 deposit accounts; or (2) total assets of $20 billion, regardless of the number of deposit accounts (a “Covered Institution”). As of the end of 2014, there were approximately 152 insured depository institutions covered by this rule.


How does the FDIC determine which insured depository institutions are covered by this rule?

The FDIC uses data reported by an insured depository institution on its Report of Condition and Income (Call Report) or Thrift Financial Report (TFR)1. The rule became effective on August 18, 2008; thus, the initial group of Covered Institutions was determined based on Call Report and TFR data reported as of June 30, 2008.


My institution currently does not meet the criteria of a Covered Institution, but may meet them in the near future. What does the rule require?

An insured depository institution not meeting the criteria of a Covered Institution as of August 18, 2008 (using June 30, 2008 Call Report or TFR data) is designated a Non-Covered Institution as of that date and is not subject to any requirements under the rule. A Non-Covered Institution may meet the criteria of a Covered Institution in the future through organic growth in its deposit base or due to merger activity. If the criteria of a Covered Institution are met for two consecutive quarters, your institution will be designated a Covered Institution under this rule and will have 18 months to comply with its requirements.


My institution is currently a Covered Institution, but our Call Report numbers do not meet the criteria for a Rule 360.9 Covered Institution. Does this mean my institution no longer needs to comply with the requirements of the rule?

If your institution does not meet the definition of a Covered Institution (as defined in 12C.F.R. § 360.9(b)(1)) for three consecutive quarters it is no longer subject to the requirements of the rule. Please keep in mind that in the future, should your institution meet the requirements as a Covered Institution under this rule, your institution will once again be required to comply with the rule. Institutions in this situation may wish to consider the costs and benefits of maintaining their current ยง360.9 functionalities against the likelihood of becoming a Covered Institution once again and the one–time costs associated with returning to a rule compliant state.


Our holding company has three affiliated insured depository institutions, but only one meets the requirements of a Covered Institution. Does this mean all three insured depository institutions must meet the requirements of the rule?

No. The rule only applies to a Covered Institution. It is possible for a multi-bank holding company to have affiliated insured depository institutions that are both Covered Institutions and Non-Covered Institutions.


My institution has been notified that it is a Covered Institution, but it has fewer than 250,000 deposit accounts (and doesn’t meet the $20 billion asset size requirement). Does this mean we must comply with the requirements of the rule?

In some cases, the number of deposit accounts reported on the Call Report is different from the number of accounts posted on the books and records of the institution. If you have been informed by the FDIC that your institution is a Covered Institution, but you have reason to believe it should not be subject to the requirements of the rule, you may apply to the FDIC for exemption from these requirements. If the number of deposit accounts reported on the Call Report is more than 250,000 due solely to a reporting error, you may notify the FDIC of the reporting error and the corrections to the Call Report data.


What is the process for applying for an exemption of any of the requirements of the rule?

As required by the Rule, the request letter indicating the nature and basis of the request must be sent in writing to:

The Office of the Director
Division of Resolutions and Receiverships
Federal Deposit Insurance Corporation
550 17th Street, NW
Washington, DC 20429-0002

A scanned copy of the request letter should also be sent to DRRLargeBnkDepRule@FDIC.gov.

The exemption request letter must include:

  1. Explanation of the basis for the request including all supporting facts and specific detail.
  2. In the case of a request for a sub-system exemption, the letter should include:
    1. Name of system(s) that are the subject of the request;
    2. Number of accounts in the system;
    3. Total dollar amount of deposits in the system;
    4. A proposal for how the Covered Institution would put a timely, provisional hold on the system deposits that results in an outcome meeting the Rule’s requirements, in the event of the bank’s failure.
  3. Include an acknowledgement that the exemption request, if granted, only applies under the current circumstances, and that if the circumstances materially change, the exemption approval would no longer apply.

Does the FDIC allow the placement of provisional holds manually?

The regulation mandates that all FDIC provisional holds be placed automatically. However, in certain circumstances placing provisional holds manually is acceptable on certain sub-systems. The Covered Institution needs to submit an exemption request for FDIC approval to use an alternative mechanism to place provisional holds on certain sub-systems. Please see 12 CFR 360.9(c)(9).

As required by the Rule, the request letter indicating the nature and basis of the request must be sent in writing to:

The Office of the Director
Division of Resolutions and Receiverships
Federal Deposit Insurance Corporation
550 17th Street, NW
Washington, DC 20429-0002

A scanned copy of the request letter should also be sent to DRRLargeBnkDepRule@FDIC.gov.

  1. Explanation of the basis for the request including all supporting facts and specific detail.
  2. In the case of a request for a sub-system exemption, the letter should include:
    1. Name of system(s) that are the subject of the request;
    2. Number of accounts in the system;
    3. Total dollar amount of deposits in the system;
    4. A proposal for how the Covered Institution would put a timely, provisional hold on the system deposits that results in an outcome meeting the Rule’s requirements, in the event of the bank’s failure.
  3. Include an acknowledgement that the exemption request, if granted, only applies under the current circumstances, and that if the circumstances materially change, the exemption approval would no longer apply.

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1 With the implementation of the Dodd Frank Act and the closure of the Office of Thrift Supervision on July 21, 2011, all thrift institutions are required to submit Call Reports instead of TFRs effective March 2012.

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