FDIC Brokered Deposits
Brokered deposits are a critical funding source for many banks, enabling them to serve a wider range of customers. The Innovative Payments Association believes that the 2020 brokered deposit rules struck a sensible balance between consumer protection and supporting financial innovation. Unfounded calls to tighten these regulations based on unrelated bank failures are misguided. Such actions would stifle the growth of the payments industry, limit consumer choice, and potentially undermine economic recovery. It's essential that policymakers focus on addressing the actual root causes of recent bank failures rather than imposing unnecessary burdens on a sector that has played a vital role in expanding financial inclusion.
Resources
- FDIC releases initial FAQ on January 5, 2015
- Revised FAQs released on November 13, 2015
- Second Revision released on June 30, 2016
- U.S. Rep. Tipton (R-CO) introduces Protect Prepaid Accounts Act (2016)
- IPA meeting with FDIC Chair Jelena McWilliams (July 24, 2018)
- IPA Op-ed: Taking a Second Look at the FDIC’s Brokered Deposit Definition (Sept. 7, 2018)
- FDIC releases ANPR on Brokered Deposits in December 2018
- IPA meeting with FDIC General Counsel Nick Posiadly on July 24, 2019
- IPA Op-ed: For the Sake of Payments Innovation, Deposit Insurance Must Enter the 21st Century (Nov. 11, 2019)
The IPA (NBPCA) unsolicited comment letter and white paper on Dec. 23, 2015
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IPA comment responding to the ANPR on Brokered Deposits on April 18, 2019
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IPA Comment Letter to FDIC Regarding Advertising RFI
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IPA Comment Letter to FDIC Regarding Advertising RFI
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Unsafe and Unsound Banking Practices: Brokered Deposits Restrictions (Final Rule)
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IPA_Comments to OCC on ANPR July 29, 2020
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Chairman Crapo Letter to OCC Sept. 1, 2020
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