FDIC Seeks Comments on Proposal to Simplify Deposit Insurance Regulations
The FDIC Board of Directors on April 29, l997, proposed a rule to
clarify and simplify the agency's deposit insurance regulations.
The action reflects the FDIC's efforts to help consumers and
bankers better understand deposit insurance rules. The FDIC will
accept comments on the proposed rule through August 12, l997.
The proposed rule includes many technical changes to the
insurance regulations, the most notable being the inclusion of
common examples illustrating how the FDIC insures the most basic
types of deposit accounts, primarily consumer accounts. For
every type of consumer account--individual (or single-ownership),
joint, and payable-on-death (POD)--the proposed rule provides a
straightforward, easy-to-understand example.
The publication also includes three proposed substantive
revisions to the deposit insurance rules that would:
Revise the deposit insurance recordkeeping rules to provide
the FDIC with more flexibility in considering the actual
ownership interests in deposit accounts held by fiduciaries;
Permit a six-month period of continued identical insurance
coverage following an account holder's death for those
accounts in which the decedent had an ownership interest;
Clarify the POD rules to indicate they may apply to accounts
held in connection with living trusts, but only if the
requirements of the POD regulation are satisfied.
The Board's proposal is part of its ongoing review of regulations
and policies designed to reduce regulatory burden and improve
The proposed rule is attached. For more information about the
proposal, please contact Joseph A. DiNuzzo, Counsel in the FDIC's
Legal Division, at (202) 898-7349.
William F. Kroener, III
Attachment: Federal Register, 12 CFR Part 330, Vol. 62, No. 93,
May 14, 1997, pp. 26435-26449
Distribution: All Insured Banks and Savings Associations
NOTE: Paper copies of FDIC financial institution letters may be
obtained through the FDIC's Public Information Center, 801 17th
Street, N.W., Room 100, Washington, D.C. 20434 (800-276-6003 or
(703) 562-2200). An electronic version of this press release, with
a link to the Federal Register attachment, is available at the
FDIC website, /banknews -- then go to
Financial Institution Letters.