The Federal Deposit Insurance Corporation is considering additional recordkeeping requirements for the nation’s largest banks in an effort to streamline the process for reimbursing insured depositors if one of those institutions fails.
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. For a bank with a large number of deposit accounts, however, payments might be delayed if the bank's records on which deposits are, or are not, insured are unclear or incomplete. A failed bank with multiple deposit systems could further complicate this work, especially if a bank with a large number of deposit accounts were to fail with little prior warning.
An advanced notice of proposed rulemaking approved on Tuesday seeks public comment on ways the FDIC could strengthen requirements for deposit account recordkeeping and administration at institutions with a large number of deposit accounts.
Any new recordkeeping standards that emerge from the rule would likely apply to the 37 banks that currently have more than 2 million in insured deposit accounts, requiring them to make changes to their existing systems and processes. In the ANPR, the FDIC said it does not expect that any of the proposed responsibilities would apply to community banks.
The ANPR includes a number of additional topics for consideration, including what types of new data requirements would benefit a rapid and efficient insurance determination process, and what the appropriate threshold for institutions should be. The FDIC will accept comments for 90 days after the ANPR is published in the Federal Register.