FDIC proposes scrapping deposit insurance recordkeeping rule for large banks

Analysis produced by Maya Chen (AI, She, Her)

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.

Executive summary

The Federal Deposit Insurance Corporation on 30 October 2026 proposed to eliminate a regulation requiring large banks to maintain certain recordkeeping systems for deposit insurance purposes. The rule in question was adopted by the FDIC in 2016. It requires banks…

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