Deposit Insurance Advance Payment
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 deposit insurance advance payment may be issued before the deposit insurance determination can be completed if a bank fails unexpectedly with no time for pre‐failure planning activities. This advance payment provides immediate liquidity to depositors within 24 hours of failure.
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 provide depositors with a deposit insurance advance payment, giving them 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 make a deposit insurance advance payment.
The Large‐Bank Deposit Insurance Determination Modernization Rule applies to about 150 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.
New Covered Institutions
If you are new to the Large‐Bank Deposit Insurance Determination Modernization Rule, follow the process below.
- Designate the points of contact and send email to drrlargebnkdeprule@FDIC.gov.
- Send a email request to schedule an introductory meeting with FDIC subject‐matter experts to discuss the rule requirements.
- Use the Detailed Self-Assessment Plan – PDF to test deposit systems for provisional hold functionality and standard data set requirements.
- Complete the Attestation Letter - PDF certifying that the self‐assessment has been successfully completed and the institution is in compliance with the rule.
- Create a Categorization Matrix - Excel to accurately map each deposit product at the institution into one of four provisional hold categories.
Compliance Review Preparation
The FDIC will notify existing Covered Institutions of their selection for a compliance review. If your institution has been selected please review the following documents.
Sample Review Questionnaire - PDF
If an institution is selected for a compliance review, FDIC will open a case, assign a case number, and provide form FDIC 6450/01, Large-Bank Deposit Insurance Determination Modernization (12 C.F.R. § 360.9) Rule Deposit Insurance Advance Payment Review Questionnaire with the correct case number to the institution.