FDIC Requests More Info on Deposits
The Federal Deposit Insurance Corporation (FDIC) recently published a "Request for Information on Deposits" memo, which comments, "The bank failures that occurred in March 2023 and the subsequent events renewed focus on deposit insurance coverage, bank funding concentrations, and certain banks' reliance on uninsured deposits. While banks are required to provide certain data on deposit liabilities on the Consolidated Reports of Condition and Income (Call Report), they do not report comprehensive data on the composition of insured and uninsured deposits. With the attached request for information (the request, or RFI), staff seek to further evaluate whether and to what extent certain types of deposits may behave differently from each other, particularly during periods of economic or financial stress." The brief explains, "The request for information includes questions on deposit data that is not currently reported in the Federal Financial Institutions Examination Council's (FFIEC) Call Report or other regulatory reports, including for uninsured deposits. The request seeks information on the characteristics that affect the stability and franchise value of different types of deposits and whether more detailed or more frequent reporting on these characteristics or types of deposits could enhance offsite risk and liquidity monitoring; inform analysis of the benefits and costs associated with additional deposit insurance coverage for certain types of deposits; improve risk sensitivity of deposit insurance pricing; and provide analysts and the general public with accurate and transparent data." It adds, "Staff recommend that the FDIC's Board of Directors (Board) approve the attached request for information (the request, or RFI) and authorize its publication in the Federal Register with a comment period ending 60-days after publication." See also the statement, "FDIC Board Approves Proposed Rule to Revise Brokered Deposit Regulations."
