The Federal Deposit Insurance Corporation has approved a final rule establishing recordkeeping requirements for federally insured institutions with a large number of deposit accounts. It is intended to facilitate the rapid payment of insured deposits to customers if those institutions were to fail.

The rule applies to insured depository institutions with more than 2 million deposit accounts, and requires these institutions to maintain complete and accurate data on each depositor. Covered banks are also required to ensure that their information technology systems are capable of calculating the amount of insured money for most depositors within 24 hours of a failure.

Currently there are 38 institutions with more than 2 million deposit accounts. The rule allows these institutions three years to develop the recordkeeping and IT systems required for compliance.

The FDIC received comments on the proposed rule that covered institutions could have difficulty meeting the new recordkeeping requirements with respect to certain deposit accounts, including trust deposits, brokered deposits, and other accounts that qualify for "pass through" deposit insurance coverage. In response to these concerns, the final rule establishes alternative requirements for these accounts and also permits institutions to develop systems that process these accounts during a longer period after a failure, except for certain accounts that have transactional features.

Additional modifications in response to comments include an extension of the compliance period and the simplification of the process to consider exemptions from portions of the rule.

The FDIC anticipates that the rule will become effective on April 1, 2017. It intends to issue functional design assistance for system programming prior to the effective date to aid in this process.

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