FDIC Advises Banks to Contact Examiners on Brokered Deposits
Prepaid issuers aren’t the only ones confused by the potential implications of the FDIC’s recent FAQs on brokered deposits. American Bankers Association personnel met with FDIC staff this week for clarification on certain aspects of the FAQs. And, although the agency offered some details, it’s recommending that issuers reach out to their examiners with specific questions.
For prepaid issuers, specifically, the FDIC recognized that a bank may require time for careful review and consultation with FDIC staff to determine whether a prepaid card-related deposit is brokered, the report said. Classification of such deposits as brokered may be reflected in first-quarter 2015 call reports and could be resubmitted for prior quarters if appropriate under the materiality test, according to the ABA.
The ABA report also indicated that informal professional referrals, unrelated to a programmatic arrangement, such as a written agreement or a fee, are not expected to cause most banks to reclassify those deposits as brokered.
FDIC staff told the ABA that the FAQs will be updated periodically on the FDIC Website. The FDIC declined Paybefore’s request for further comments.
See related stories:
- Viewpoint: FDIC’s Brokered Deposits FAQs – Implications Range from Limited to Significant for Prepaid Issuers: It All Depends
- The Bancorp Reclassifies Deposits in Compliance with FDIC FAQs
- Meta Financial Group Announces Preliminary Financial Results and Discusses the Effect of New FDIC Guidance on Brokered Deposits