On October 30, the FDIC announced a proposal that would rescind 12 CFR part 370, its 2016 “Recordkeeping for Timely Deposit Insurance Determination” rule, which requires insured depository institutions (IDIs) with two million or more deposit accounts to configure their IT systems to calculate deposit insurance coverage. According to the FDIC, enhancements to its own systems since 2016 would allow it to rescind part 370 “without materially impeding” its ability to calculate deposit insurance. The proposal would require larger covered institutions, defined as those IDIs with at least $2 billion in deposits and two million or more deposit accounts, to maintain, and provide to the FDIC, data for the agency to calculate deposit insurance in the event of the IDI’s failure. The FDIC stated that the changes would “relieve larger covered institutions of the requirements to build and maintain deposit insurance calculation systems.” The proposal would impose no new requirements on institutions currently subject to Section 360.9.

Under the proposal, larger covered institutions would be required to: (i) provide the FDIC with 26 mandatory data fields (21 of which are currently required to be populated under part 370); (ii) meet Section 360.9’s provisional hold requirements, even if previously released from them; and (iii) for certain accounts with transactional features, either make a good faith effort to contractually obligate account holders to deliver deposit insurance data to the FDIC within 24 hours of the appointment of the FDIC as receiver in order for the account holder to have access to deposits on the next business day after failure, or disclose in writing that access to deposits may be delayed. Institutions that are larger covered institutions on the effective date would have six months to comply with most requirements and 18 months to comply with the provisional hold requirements. The proposal would also codify an automatic release from the rule and index its dollar thresholds to inflation. The FDIC estimates the proposal would affect 148 IDIs and yield annualized net industry savings of approximately $31 million. Comments are due January 3, 2027.