Comments due on FDIC recordkeeping proposal

The FDIC has approved a proposal for recordkeeping requirements for FDIC-insured institutions with a large number of deposit accounts to facilitate rapid payment of insured deposits to customers if the institutions were to fail. The proposed rule would apply to insured depository institutions with more than two million deposit accounts. Under the proposal, these institutions would generally be required to maintain complete and accurate data on each depositor. Further, the institutions would be required to ensure that their information technology systems are capable of calculating the amount of insured money for each depositor within 24 hours of a failure. The FDIC is not proposing or considering making these requirements applicable to smaller institutions, including community banks. The FDIC will accept comments on the proposal for 90 days after it is published in the Federal Register. A statement from Chairman Gruenberg on the proposed rule was also released.

Update:The proposed rule was published at 81 FR 10025 on Friday, February 26, 2016. Comments will be accepted through May 26, 2016.

Further Update: An FDIC May 20, 2016, press release announced that the comment period has been extended 30 days, to end on June 27, 2016. The FDIC has also published a report prepared for the agency on the estimated cost of compliance.