If an insured depository institution ceases to be well capitalized, must the institution immediately meet the applicable rate caps on deposit accounts that never mature or renew, such as interest checking or savings accounts?

Compliance > Deposits > Brokered Deposits
Q:  If an insured depository institution ceases to be well capitalized, must the institution immediately meet the applicable rate caps on deposit accounts that never mature or renew, such as interest checking or savings accounts?
 
A:   While Section 29 restricts institutions from paying above market rates on deposit accounts once they fall below well capitalized, it is critical that institution management contact its primary federal regulator when the lowering of the deposit rates 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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