The FDIC proposed a rule change that will effectively cause the vast majority of third-party vendors to be considered deposit brokers.
This would devastate the competitiveness of community banks, many of whom have limited resources and rely on third-party vendors to help them innovate.
It would also give an advantage to megabanks who have vast resources and can continue to out-spend, out-innovate, and out-market these local banks.
Help the FDIC craft a rule that strengthens the industry, protects the economy, and benefits consumers. Join our coalition of community banks, companies, concerned citizens, and industry experts to ask the FDIC to revise the language.
Under the proposed regulation, anyone fitting the below descriptions would now be considered deposit brokers**:
Third parties sharing information with the insured depository institution;
Anyone that can close or move accounts or funds to another insured depository institution;
Anyone involved in setting rates, fees, terms, or conditions for the deposit accounts;
The person involved in the placement of deposits on behalf of a depositor and an insured depository institution who performs anything other than “administrative services.”
*The FDIC only has authority over banks. Credit unions would be exempt unless a similar ruling were to be made at the NCUA.
**This language has been summarized from the original texts.
We believe the FDIC’s mission is to help community banks and the proposed rule contains some language that could cause real harm. It’s up to us to let them know what they got right and what they got wrong. The comment period is open for 60 days once the proposed rule is posted to the Federal Register. Need help with what to say? We've got a summary you can use.
Join the Partnership to Save Community Banking Competitiveness
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Add your comment on the proposed rule using the FDIC's website.
The FDIC has recently opened a 60-day comment period. Between now and April 10 is our window to voice the need for revisions.
THE PARTNERSHIP TO SAVE COMMUNITY BANKING COMPETITIVENESS WAS CREATED TO RAISE AWARENESS ABOUT THE RULE CHANGE PROPOSED BY THE FDIC REGARDING BROKERED DEPOSITS AND TO SUGGEST A REVISION TO THE RULE THAT WILL SUPPORT THE FDIC'S STATED INTENT. IT IS COMPRISED OF COMMUNITY BANKS, FINANCIAL TECHNOLOGY PROVIDERS, AND OTHER INDUSTRY ASSOCIATIONS.