Summary: | The FDIC Board of Directors has approved the attached notice of proposed rulemaking that would require certain employees of insured depository institutions (IDIs) to complete training on the fundamentals of FDIC deposit insurance coverage. In addition, the proposed rule would require IDI employees, when opening deposit accounts, to provide customers with the FDIC's publication, Deposit Insurance Summary , if the customer will have more than the Standard Maximum Deposit Insurance Amount (SMDIA)— $250,000—at the institution. The proposed rule also would require every IDI to provide a link to the FDIC's Electronic Deposit Insurance Estimator (EDIE) on its Web sites. The FDIC believes the proposed rule would achieve the balance of minimizing regulatory burden with ensuring that depositors are better informed. The FDIC welcomes comment on the proposed rule for 60 days. |
Highlights:
Continuation of FIL-6-2011
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Suggested Routing:
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Proposed Rule Requiring Certain Bank Staff to Complete FDIC-Provided Training on Deposit Insurance Coverage The FDIC receives tens of thousands of telephone calls, emails, and correspondence annually from depositors and employees of insured depository institutions (IDIs) seeking information and advice about FDIC deposit insurance coverage. These inquiries reveal that many depositors are unsure whether their deposits are covered in full by FDIC insurance, and that IDI employees often are unfamiliar with the limits that apply to deposit insurance coverage. In addition, the FDIC regularly receives complaints from IDI customers asserting that their IDI was unable to answer their deposit insurance questions or, in some cases, may have provided inaccurate deposit insurance guidance. FDIC regulations currently do not require employees at IDIs to receive training in the basic principles of FDIC deposit insurance coverage or to assist customers in ascertaining whether their deposits are fully covered by federal deposit insurance. The FDIC is concerned that inaccurate deposit insurance information could cause financial harm to depositors and have the potential to undermine customer confidence in the federal deposit insurance system. Since many depositors' first inquiry about deposit insurance coverage is with their IDI, it is important that IDI employees who open new accounts or provide deposit insurance information to customers receive training in the fundamentals of FDIC deposit insurance coverage. Knowledge of FDIC deposit insurance rules and resources will help IDI employees answer customer questions about their deposit insurance coverage, which in turn will help ensure that depositors have the information they need to make informed decisions about the amount of insurance coverage they have for funds deposited in IDIs. The proposed rule has three requirements:
The FDIC believes the proposed rule would impose minimal burden on institutions and this burden would be more than offset by the benefits to be realized by depositors and by the IDIs themselves. The Corporation will remain, of course, the principal resource on deposit insurance coverage. |
Additional Related Topics:
- Deposit Insurance Coverage
- 12 C.F.R. Part 330