A request for information (RFI) on deposits – specifically, to get feedback on whether uninsured deposits should be reported to bank regulators – is out for comment until Oct. 7, according to a notice in Tuesday’s Federal Register.
The RFI was issued for comment last week by unanimous vote of the Federal Deposit Insurance Corp. (FDIC) Board. The FDIC notice says that its aim through the added reporting, if implemented, would be to:
- gather 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 in deposit insurance pricing; and
- provide analysts and the general public with accurate and transparent data.
The RFI was issued against the backdrop of last year’s failures of Silicon Valley Bank (SVB), Signature Bank, and First Republic Bank (First Republic). The FDIC approved a special assessment for certain large banks in November to cover the costs of those failures that were attributable to the protection of uninsured depositors, estimated at about $16.3 billion.
“The bank failures that occurred in March 2023 and subsequent events renewed focus by financial regulatory agencies, banks, investors, and the public on deposit insurance coverage, bank funding concentrations, and certain banks’ reliance on uninsured deposits,” the agency said in Tuesday’s notice.
It added that while banks are required to provide certain data on deposit liabilities on their call reports, they do not report comprehensive data on the composition of insured and uninsured deposits. “Through this request for information, the FDIC is seeking 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,” it said.