Federal Deposit Insurance Corporation February 3, 2009 – Federal Register Recent Federal Regulation Documents

The FDIC is proposing to amend its regulations relating to the interest rate restrictions that apply to insured depository institutions that are not well capitalized. Under the proposed rule, such insured depository institutions generally would be permitted to offer the ``national rate'' plus 75 basis points. The ``national rate'' would be defined, for deposits of similar size and maturity, as an average of rates paid by all insured depository institutions and branches for which data are available. For those cases in which the ``national rate'' does not represent the prevailing rate in a particular market, as indicated by available evidence, the depository institution would be permitted to offer the prevailing rate plus 75 basis points. The purpose of this proposed rule is to clarify the interest rate restrictions for certain insured depository institutions and examiners.