A2 - What is a deposit broker?

Compliance > Deposits > Brokered Deposits
Q:  What is a deposit broker?
A:  Under Section 29 of the Federal Deposit Insurance (FDI) Act, a “deposit broker” is “[a]ny person engaged in the business of placing deposits, or facilitating the placement of deposits, of third parties with insured depository institutions or the business of placing deposits with insured depository institutions for the purpose of selling interests in those deposits to third parties.”  As explained in the FDIC’s Study on Core Deposits and Brokered Deposits, the definition of deposit broker is broad.  This definition is subject to certain exceptions (discussed in section E of this document).  As a result of this broad definition, a brokered deposit may be any deposit accepted by an insured depository institution from or through a third party, such as a person or  company or organization other than the owner of the deposit.

This can be found in FDIC’s "Identifying, Accepting and Reporting Brokered Deposits Frequently Asked Questions," which can be found at https://www.fdic.gov/news/news/financial/2016/fil16042b.pdf

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