FDIC Guidance on Bank Brokered Deposits
1 hour 5 minutes
Understand how a bank or broker should navigate some of the most common pitfalls in applying FDIC regulations to your business.
Almost $2 trillion of customer funds are currently maintained in deposit accounts at FDIC-insured banks that are offered by and held through registered broker-dealers and banks that act as deposit brokers. These brokered deposits are, on one hand, a core investment and savings product for retail investors and other customers of financial services firms, and, on the other, a significant source of funding for banks, which can access a nationwide capital market by attracting or tapping into brokered deposits. A year ago, the FDIC made the most far-reaching changes to the definition of deposit broker since its brokered deposit regulations were adopted in 1992. These amendments, among many other changes, expand existing exceptions to the deposit broker definition and create several new exceptions. In this course, you will get an overview of the new brokered deposit regulations, learn guidance the FDIC staff has provided about them, and understand how a bank or broker should navigate some of the most common pitfalls in applying these regulations to your business.
• You will be able to discuss brokered deposits markets.
• You will be able to explain the consequences of brokered deposits.
• You will be able to review new PPE exceptions.
• You will be able to describe new trends, including neobanks and stablecoins.