The Federal Deposit Insurance Corporation has proposed new recordkeeping requirements for federally-insured institutions with a large number of deposit accounts. The move is intended to facilitate rapid payment of deposits to customers if the institutions were to fail.
The rule would apply to insured depository institutions with more than 2 million deposit accounts. Under the proposal, these institutions would generally be required to maintain complete and accurate data on each depositor. The institutions would also 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 required to provide depositors with access to their insured accounts as soon as possible after an institution fails. Typically, this money is available by the next business day. However, for a bank with a large number of deposit accounts, payments might be delayed if the bank's records are unclear or incomplete, making it difficult to determine what is insured and what is not. A failed bank with multiple deposit systems, or a sudden failure with little advance notice, could further complicate this work.
The FDIC is not proposing or considering making these requirements applicable to smaller institutions, including community banks.
“This proposal would bolster the FDIC's ability to provide depositors at banks with a large number of deposit accounts the same rapid access to their insured funds in the case of a failure as the FDIC does in smaller resolutions,” FDIC Chairman Martin J. Gruenberg said in a statement.
Comments on the proposal will b accepted for 90 days after it is published in the Federal Register.