The FDIC proposed amending the interest rate restrictions for insured depository institutions ("IDIs") that are less than "well capitalized" (i.e., any IDI that does not significantly exceed the required minimum for capital ratios). The FDIC previously requested comments on all aspects of its brokered deposit and interest rate regulations.

According to the FDIC, the proposal is designed to (i) make the national rate cap "more balanced, reflective and dynamic" and (ii) allow less than well capitalized institutions to offer a maximum of 90 percent of the highest rate paid on a deposit product within the institutions' local market area. Specifically, the proposal would:

  • measure the national rate by the weighted average of rates paid by all IDIs on a particular deposit product; and

  • set the national rate cap for specific products at the higher of either (i) the 95th percentile of rates paid by IDIs weighted by each intuition's share of total domestic deposits or (ii) the proposed national rate plus 75 basis points.

Comments must be submitted within 60 days of publication of the proposal in the Federal Register.

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