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Statement of Martin J. Gruenberg, Chairman, Federal Deposit
Insurance Corporation: Issuance of a Notice of Proposed
Rulemaking on Recordkeeping for Timely Deposit Insurance
Determination
February 17, 2016
In the aftermath of the financial crisis, the FDIC has worked to
improve its capabilities to manage the resolution of a large failed bank.
This Notice of Proposed Rulemaking, or NPR, follows an Advance
Notice of Proposed Rulemaking published in April 2015. That ANPR
resulted in a number of helpful comments that informed our
consideration of this issue and helped shape the proposed rule we are
considering today.
Timely access to insured deposits when a bank fails is critical to
maintaining public confidence in the banking system. Today’s proposal
would bolster the FDIC’s ability to provide depositors at large banks
with at least two million accounts with the same rapid access to their
insured funds as the FDIC does when a smaller institution fails.
Typically, the FDIC is able to make most insured deposits available to
depositors by the next business day after a bank fails.
Statement of Martin J. Gruenberg, Chairman, Federal Deposit
Insurance Corporation: Issuance of a Notice of Proposed
Rulemaking on Recordkeeping for Timely Deposit Insurance
Determination
February 17, 2016
In the aftermath of the financial crisis, the FDIC has worked to
improve its capabilities to manage the resolution of a large failed bank.
This Notice of Proposed Rulemaking, or NPR, follows an Advance
Notice of Proposed Rulemaking published in April 2015. That ANPR
resulted in a number of helpful comments that informed our
consideration of this issue and helped shape the proposed rule we are
considering today.
Timely access to insured deposits when a bank fails is critical to
maintaining public confidence in the banking system. Today’s proposal
would bolster the FDIC’s ability to provide depositors at large banks
with at least two million accounts with the same rapid access to their
insured funds as the FDIC does when a smaller institution fails.
Typically, the FDIC is able to make most insured deposits available to
depositors by the next business day after a bank fails.
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While the proposal would apply to banks with at least two million
deposit accounts, some of the banks covered by the NPR now have more
than 50 million deposit accounts, offer FDIC-insured accounts using
complex account structures, and use information technology systems
that are more complex than smaller banks typically employ. Many of
them also have multiple deposit platforms inherited through prior
acquisitions.
As set forth in the NPR, the FDIC is proposing to achieve its goal
by generally requiring banks with two million or more deposit accounts
to improve the quality of their deposit data and make changes to their
information systems so that the FDIC could make a prompt and accurate
insurance determination. There are currently 36 banks with two million
or more deposit accounts that would be covered by this rule. The FDIC
is not proposing or considering making these requirements applicable to
smaller institutions, including community banks.
The FDIC welcomes further comment from the industry and other
interested parties on this proposal.
While the proposal would apply to banks with at least two million
deposit accounts, some of the banks covered by the NPR now have more
than 50 million deposit accounts, offer FDIC-insured accounts using
complex account structures, and use information technology systems
that are more complex than smaller banks typically employ. Many of
them also have multiple deposit platforms inherited through prior
acquisitions.
As set forth in the NPR, the FDIC is proposing to achieve its goal
by generally requiring banks with two million or more deposit accounts
to improve the quality of their deposit data and make changes to their
information systems so that the FDIC could make a prompt and accurate
insurance determination. There are currently 36 banks with two million
or more deposit accounts that would be covered by this rule. The FDIC
is not proposing or considering making these requirements applicable to
smaller institutions, including community banks.
The FDIC welcomes further comment from the industry and other
interested parties on this proposal.