The Federal Deposit Insurance Corp. will host a March 18 roundtable with industry executives on issues related to brokered deposits.
The roundtable is meant to provide public input for an FDIC study — mandated by the Dodd-Frank Act — on how to define core versus brokered deposits for regulatory purposes, and on possible legislative recommendations for adjusting those definitions. Like other events the FDIC has held on Dodd-Frank implementation, the roundtable will be webcast live.
As the agencies have warned against overusing noncore funds, having deposits classified as "brokered" has raised institutions' regulatory costs. A high proportion of brokered deposits, for example, can increase a bank's deposit insurance premiums.
The Dodd-Frank study is due in July, one year after the law was enacted. It requires the FDIC, among other things, to evaluate how core deposits are defined for the purpose of calculating premiums and the potential impact on the Deposit Insurance Fund of revising those definitions.
