Federal Deposit Insurance Corporation December 13, 2006 – Federal Register Recent Federal Regulation Documents

Large-Bank Deposit Insurance Determination Modernization Proposal
Document Number: E6-21143
Type: Proposed Rule
Date: 2006-12-13
Agency: Federal Deposit Insurance Corporation, Agencies and Commissions
The FDIC is seeking comment on whether and how the largest insured depository institutions should be required to modify their deposit account systems to speed depositor access to funds in the event of a failure. Today, insured institutions do not track the insured status of their depositors yet the FDIC must make deposit insurance coverage determinations in the event of failure. The current process might result in unacceptable delays if used for an FDIC-insured institution with a large volume of deposit accounts. Such delays would have an impact on depositors' ability to access their funds and are likely to result in a resolution (of the failed institution) significantly more costly to the Deposit Insurance Fund. As currently contemplated, the options discussed in the ANPR would apply only to the 152 insured depository institutions with more than 250,000 deposit accounts and more than $2 billion in domestic deposits, as well as seven additional institutions with total assets over $20 billion, less than 250,000 deposit accounts and at least $2 billion in domestic deposits. In December 2005 the FDIC issued a prior advance notice of proposed rulemaking on this subject (``2005 ANPR'').\1\ This ANPR is a follow-up to that issuance. The FDIC is seeking comment on all aspects of the ANPR.