FDIC Seeks Comments on Efforts
to Simplify Deposit Insurance Regulations
The FDIC Board of Directors on May 14, 1996, agreed to issue
the attached advance notice of proposed rulemaking on simplifying
the FDIC's rules on deposit insurance. The Board's action
is part of its ongoing review of policies and regulations
designed to reduce regulatory burden and improve efficiency.
It also is part of the FDIC's efforts to promote public understanding
of deposit insurance and to increase financial institution
and consumer understanding of deposit insurance.
The FDIC is seeking comment on whether the deposit insurance
rules should be simplified and, if so, how. If the Board finds
simplification to be warranted, it will propose specific amendments
on which industry and public comment will again be invited.
The purpose of the notice is to solicit comments to help guide
the possible preparation of a proposed rule. The FDIC will
accept comments through August 20, 1996.
The advance notice of proposed rulemaking requests comments
on all aspects of streamlining, simplifying and clarifying
the insurance rules, including the likely effect of such changes
on consumers and the banking industry. The FDIC also is seeking
suggestions on the following specific revisions that the Board
Rewriting certain parts of the insurance rules to make
them clearer and easier to understand.
Eliminating step one of the two steps involved in determining
insurance coverage for joint accounts.
Revising the recordkeeping rules allowing the FDIC more
flexibility (for the benefit of depositors) in determining
the ownership of deposits held in a custodial or fiduciary
Changing the rules on "payable upon death" accounts.
Modifying the way the FDIC insures certain types of accounts
upon the death of the owner(s) of the accounts.
Recommending that the Federal Deposit Insurance Act be
amended to change the way employee benefit plans are insured.
Revising the rules on living trust accounts.
For more information, please contact Joseph A. DiNuzzo,
Acting Senior Counsel, at (202) 898-7349, or Adrienne George,
Attorney, at (202) 898-3859 in the FDIC Legal Division.
William F. Kroener, III
The attachment to this Financial Institution Letter is not
currently available in electronic format. Until it is in a
form that will allow us to post it to the internet, you may
obtain hard copy or fax from:
Public Information Center
801 17th St. NW
Washington, DC 20434
ph: (703) 562-2200
Distribution: All Insured Banks and Savings Associations