FDIC Part 370 frequently asked questions

For the benefit of insured depository institutions with two million or more deposit accounts (a “Covered Institution” or “CI”), FDIC has recently published a compilation of frequently asked questions (“FAQs”) from the inquiries it had received from covered institutions as well as outreach meetings it had conducted with them. This publication also provides FDIC responses and staff opinions as guidance to covered institutions in implementing 12 C.F.R. Part 370 (“Part 370”).

In the publication, FDIC also notes that the Technical Guide will be updated over time, as when “new information regarding system architecture, interfaces, capabilities, and limitations may come to light resulting in additional feedback” from input from FDIC to covered institutions.

Some of the key takeaways from the FDIC published list of FAQs can be summarized as below:

  • No interim requirements or deadlines – FDIC will not be holding CIs to any interim standards; however, the FDIC has indicated they will be initiating an outreach program so CIs can expect a visit. The FDIC has also stated that a pilot program to test calculation processes in advance of compliance date is being considered, but has not committed to it yet.
  • Flexibility with production and certification of summary report – FDIC response allows for more flexibility regarding when the test and summary reports are produced for certification, thus allowing for better coordination with existing reporting requirements.
  • Relief requests required prior to certificate submission by compliance date – FDIC confirms that relief requests can and should be submitted prior to certification submission.
  • Detailed criteria for deposit account exceptions – The criteria provided for accounts considered for exceptions emphasizes the need to be able to assess the impact. This means exceptions will generally need to be small in size relative to overall deposits and can in no way be disruptive to the depositors in a failure scenario, which likely eliminates accounts with transactional features for exception
  • Amended call report filing for covered institutions with omnibus accounts – CIs with omnibus account relationships that make up a significant portion of their deposit accounts, where each omnibus account when filed as single account results in total deposit accounts falling below two million, would not be covered by Part 370 and will need to file amended Call reports for the last three quarters to support being exempted.
  • Clarity on depositor address in customer and pending files – the mailing address is the most relevant address should the FDIC need to contact the depositor
  • Segregation of pending accounts – account relationships that include some that qualify for pending status should be segregated so the accounts that have adequate information will have immediate access as part of that initial calculations, with the pending accounts status to be determined in subsequent iterations.

Deloitte’s detailed perspective and further commentary from FDIC Part 370 Rule CoE leadership team is available here.

In addition, it should be noted that information provided by FAQ releases are targeted to all CIs captured by the regulation and specific questions should be sent to the FDIC mailbox or asked directly through meetings with the FDIC Part 370 implementation team.

 

Contacts

Olga Kasparova
Managing Director | Deloitte Risk and Financial Advisory
Deloitte & Touche LLP

Michael Quilatan
Managing Director | Deloitte Risk and Financial Advisory
Deloitte & Touche LLP

Monica O’Reilly
Principal | Deloitte Risk and Financial Advisory
Deloitte & Touche LLP

Laura Survant
Partner | Deloitte Risk and Financial Advisory
Deloitte Consulting LLP

John Corston
Independent Senior Advisor to Deloitte & Touche LLP

Joe Fellerman
Independent Senior Advisor to Deloitte & Touche LLP

Mike Thakkar
Senior Manager | Deloitte Risk and Financial Advisory
Deloitte & Touche LLP

Amanda Williamson
Senior Manager | Deloitte Risk and Financial Advisory
Deloitte & Touche LLP

Ravikiran Shetty
Senior Manager | Deloitte Risk and Financial Advisory
Deloitte & Touche LLP

Sanny Kumar
Manager | Deloitte Risk and Financial Advisory
Deloitte & Touche LLP

Marcus Williams
Manager | Deloitte Risk and Financial Advisory
Deloitte & Touche LLP

This publication contains general information only and Deloitte is not, by means of this publication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This publication is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional advisor. Deloitte shall not be responsible for any loss sustained by any person who relies on this publication.

As used in this document, “Deloitte” means Deloitte & Touche LLP, a subsidiary of Deloitte LLP. Please see http://www.deloitte.com/us/about for a detailed description of our legal structure. Certain services may not be available to attest clients under the rules and regulations of public accounting.

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