FDIC Proposes New Framework For Brokered Deposits in Fintech Era

A federal banking regulator wants to bring more consistency to the types of companies and activities subject to brokered deposit rules.

The growth in new business models between banks and fintech companies that provide payments or deposits and place that money in accounts provided by banks has been driving the question of whether 1980s-era rules should still apply.

Health savings account providers and retirement-related brokerages also want changes to the rules, which restrict brokered deposits to financial institutions that are considered “well-capitalized” by bank examiners.

“Everything has changed about how deposits are taken” since Congress enacted laws in 1989 intended ...