Section 29 of the Federal Deposit Insurance Act restricts institutions that are less than well capitalized from accepting brokered deposits, although institutions that are adequately capitalized may request a waiver from the 多宝游戏下载 to accept brokered deposits. Section 29 also prohibits institutions that are less than well capitalized from offering rates on deposits that are significantly higher than the prevailing rates of interest on deposits offered by other insured depository institutions in its normal market area.
In December 2020, the 多宝游戏下载 updated its regulations that implement Section 29 to establish a new framework for analyzing whether certain deposit arrangements qualify as brokered deposits. The new brokered deposit rule establishes bright-line standards for determining whether an entity meets the statutory definition of 鈥渄eposit broker,鈥 and a consistent process for application of the primary purpose exception. Specifically, the rule identifies a number of business relationships, or 鈥渄esignated exceptions,鈥 that automatically meet the 鈥減rimary purpose exception鈥 and also establishes an application process for entities that do not meet one of the 鈥渄esignated exceptions鈥 but seek a 鈥減rimary purpose exception.鈥 The rule requires entities seeking to rely on two of the 鈥渄esignated exceptions鈥 to send a notice to the 多宝游戏下载. Entities that submit notices or whose applications are approved may also be subject to certain reporting requirements.
The 多宝游戏下载 also amended its methodology for calculating the national rate as well as the national rate cap and local rate cap for less than well capitalized institutions.
- Press Release: 多宝游戏下载 Board Approves Final Rule on Brokered Deposit and Interest Rate Restrictions (December 15, 2020)
- Financial Institution Letter: FIL-113-2020 Combined Final Rule on Brokered Deposits and Interest Rate Restrictions (December 15, 2020)
Regulations
Key regulations that pertain to brokered deposits:
- notice of an additional business arrangement that meets the primary purpose exception (without requiring a notice or application)
- Federal Register notice with Preamble and Text of changes to
Sections 337.6 and 337.7 as of April 1, 2021, under the revised
Final Rule, Unsafe and Unsound Banking Practices:
- Federal Register notice with Preamble and Text of changes to
- sets forth the procedures for institutions that are adequately capitalized to file a brokered deposits waiver application with the 多宝游戏下载.
- sets forth the notice, applications, and reporting procedures for entities that seek the primary purpose exception to the deposit broker definition.
Resources Related to Brokered Deposit and National Rate Regulations
- List of companies that have submitted notices for a Primary Purpose Exception (PPE) under the 25% or Enabling Transactions tests (As of March 31, 2025)
- Questions and Answers Related to the Brokered Deposits Rule
- Instructions for Primary Purpose Exception Submissions (notices, applications, or ongoing reports)
- National Rates and Rate Caps (Applicable to Less Than Well Capitalized Institutions)
- Small Entity Compliance Guide
- Statement of the Federal Deposit Insurance Corporation Regarding Reporting of Sweep Deposits on Call Reports (See also Financial Institution Letter 30-2022 dated July 15, 2022)
Other Resources
Supplemental information related to brokered deposits.
- March 17, 2021 Industry Outreach 鈥 Changes to the Brokered Deposit Definition and Interest Rate Restrictions Applicable to Less than Well Capitalized Banks