Brokered deposits, guidance for resolution plan triennial full filers on FDIC Board agenda

The unusually lengthy list of items on next week’s board meeting agenda for the federal bank deposit insurer include a proposed rule on brokered deposit restrictions and final guidance for Title I resolution plan triennial full filers.

The Federal Deposit Insurance Corp. (FDIC) Board is set to hold an open meeting Tuesday at 10 a.m. Slated for the discussion agenda are:

  • Notice of Proposed Rulemaking on Brokered Deposit Restrictions.
  • Notice of Proposed Rulemaking on Parent Companies of Industrial Banks and Industrial Loan Companies.
  • Request for Information on Deposits.
  • Final Guidance for Title I Resolution Plan Triennial Full Filers and Extension of Submission Deadline.
  • Proposals regarding the Change in Bank Control Act Regulations and Procedures.

The proposed guidance for Title I resolution plan triennial full filers was proposed last August. That proposal, the agency said, reflected, among other things, its experience with Silicon Valley Bank (SVB), Signature Bank (SB), and First Republic Bank (First Republic), all of which failed in spring 2023.

“While SVB, SB, and First Republic were not required to file resolution plans under section 165(d) of the Dodd-Frank Act and the Rule, the effects of their failures illustrate that the failure of a large insured depository institution (IDI) may have serious adverse effects on financial stability in the United States,” according to the FDIC. “This experience illustrates the importance of issuing guidance to domestic triennial full filers (many of which have large subsidiary IDIs) to assist their progress in developing plans for an orderly resolution in the event of material financial distress or failure.”

Regarding industrial firm parent companies, the FDIC portion of the unified agenda of federal regulations (at reginfo.gov) shows the FDIC is planning to seek comments on the existing regulation “to reflect supervisory experience.” It states that the proposed changes would “revise the scope of the regulation, clarify the role of written commitments, and set forth additional criteria that the FDIC would consider when reviewing filings.”

The five summary agenda items – those expected (so far) to be addressed by a single vote of the board – include three regulatory items:

  • Final Rule on Revisions to the FDIC’s Section 19 Regulations.
  • Interim Final Rule on Clarification of Deposit Insurance Coverage for Legacy Branches of U.S. Banks in the Federated States of Micronesia, the Marshall Islands, and Palau.
  • Notice of Proposed Rulemaking regarding the Financial Data Transparency Act.

Tuesday’s meeting will be viewable only via webcast, the agency said.

July 30 FDIC Board meeting agenda

View the July 30 open meeting