FDIC proposes scrapping deposit insurance recordkeeping rule for large banks
The FDIC has proposed rescinding a 2016 rule that requires large banks to maintain dedicated recordkeeping systems for deposit insurance determination after a failure. The agency says its own systems have improved enough to make the obligation unnecessary. For affected institutions this removes a specific IT and data mechanism, including automated provisional holds, that has been in place for a decade.
- The FDIC proposes to rescind a 2016 rule requiring banks with at least $2 billion in deposits to maintain deposit insurance recordkeeping systems.
- The existing rule also requires automated placement and release of provisional holds on liability accounts, including deposit accounts.
- The FDIC says improvements in its own systems now let it promptly calculate deposit insurance coverage after a failure, making the requirement unnecessary.
- The agency separately plans to revise its data retention practices to minimise the volume of sensitive information it holds.