If an insured depository institution ceases to be well capitalized, must the institution immediately close brokered deposit accounts that never mature or renew (such as an interest checking or savings account)?

Compliance > Deposits > Brokered Deposits
Q:  If an insured depository institution ceases to be well capitalized, must the institution immediately close brokered deposit accounts that never mature or renew (such as an interest checking or savings account)?
 
A:    Section 29 restricts institutions from continuing to hold brokered nonmaturity accounts once they fall below well capitalized. Therefore, institutions that cease to be well capitalized must close these accounts. However, it is critical that bank management contact the bank’s primary federal regulator when the closing of these accounts could have a significant impact on liquidity or other factors affecting bank operations.
 

This can be found in FDIC’s FAQs on Brokered Deposits, which can be found at https://www.fdic.gov/news/news/financial/2015/fil15002a.pdf

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