Statement of
Martin J. Gruenberg, Chairman,
Federal Deposit Insurance Corporation:
Issuance of an Advance Notice of Proposed
Rulemaking on Large Bank Deposit Insurance
Determination Modernization
April 21, 2015
In the aftermath of the recent financial crisis, the FDIC has continued its work to improve our capabilities
to manage a large bank failure. This ANPR focuses on one aspect of that work – making timely deposit
insurance determinations where an insured bank has a large number of deposit accounts and the FDIC
has little time to plan for its failure. Timely access to insured deposits is critical to maintaining public
confidence in the banking system.
As outlined in the ANPR, a potential solution to achieving this goal would be to require that banks with a
large number of deposit accounts – for example, 2 million accounts -- improve the quality of their
deposit data and make changes to their information systems so that the FDIC could utilize them on the
night of failure to make a prompt and accurate insurance determination. This would require the 37
potentially covered banks to make changes to their existing systems and processes. The FDIC is not
considering these requirements for community banks.
The ANPR asks detailed questions, and we welcome ideas from the industry and other commenters,
including: which banks should be covered by a rule; the costs and benefits of complying with the
potential requirements; the time needed for banks to implement new requirements; and ideas about
how best to leverage existing systems and processes to achieve the desired outcome.
In light of our experience during the most recent financial crisis and the importance of achieving the
goals outlined above, I support publication of this ANPR with a 90-day comment period. I would like to
thank the FDIC staff for their excellent work in developing this ANPR and my fellow Board members for
their cooperation. If I may, I would particularly like to acknowledge Director Norton’s leadership in
focusing attention on this issue and seeking public comment.
Last Updated 4/21/2015
Martin J. Gruenberg, Chairman,
Federal Deposit Insurance Corporation:
Issuance of an Advance Notice of Proposed
Rulemaking on Large Bank Deposit Insurance
Determination Modernization
April 21, 2015
In the aftermath of the recent financial crisis, the FDIC has continued its work to improve our capabilities
to manage a large bank failure. This ANPR focuses on one aspect of that work – making timely deposit
insurance determinations where an insured bank has a large number of deposit accounts and the FDIC
has little time to plan for its failure. Timely access to insured deposits is critical to maintaining public
confidence in the banking system.
As outlined in the ANPR, a potential solution to achieving this goal would be to require that banks with a
large number of deposit accounts – for example, 2 million accounts -- improve the quality of their
deposit data and make changes to their information systems so that the FDIC could utilize them on the
night of failure to make a prompt and accurate insurance determination. This would require the 37
potentially covered banks to make changes to their existing systems and processes. The FDIC is not
considering these requirements for community banks.
The ANPR asks detailed questions, and we welcome ideas from the industry and other commenters,
including: which banks should be covered by a rule; the costs and benefits of complying with the
potential requirements; the time needed for banks to implement new requirements; and ideas about
how best to leverage existing systems and processes to achieve the desired outcome.
In light of our experience during the most recent financial crisis and the importance of achieving the
goals outlined above, I support publication of this ANPR with a 90-day comment period. I would like to
thank the FDIC staff for their excellent work in developing this ANPR and my fellow Board members for
their cooperation. If I may, I would particularly like to acknowledge Director Norton’s leadership in
focusing attention on this issue and seeking public comment.
Last Updated 4/21/2015