The Federal Deposit Insurance Corporation approved an interim final rule aligning its brokered deposit regulations with statutory changes effective July 11, 2026. The rule increases the amount of reciprocal deposits an agent institution may exclude from brokered deposits from the lesser of USD 5 billion or 20% of total liabilities to a tiered liability-based cap of up to USD 30 billion. It also expands eligibility by allowing well-capitalized institutions with a CAMELS composite rating of 1, 2 or 3 to qualify as agent institutions. The new cap equals 50% of liabilities up to USD 1 billion, 40% of liabilities between USD 1 billion and USD 10 billion, and 30% of liabilities between USD 10 billion and about USD 96.33 billion. The rule clarifies that changes to underlying depositors or network rebalancing do not constitute receipt of new nonmaturity reciprocal deposits unless the institution places additional covered deposits. An institution subject to the special cap that places new deposits while holding reciprocal deposits above that cap loses agent institution status, but can requalify once its holdings fall below the cap. The rule takes effect upon publication in the Federal Register. The Federal Financial Institutions Examination Council will issue supplemental instructions for the Sept. 30, 2026, Call Report and expects to update the instructions by Dec. 31, 2026. The FDIC intends to seek confidential treatment for the Call Report line covering brokered reciprocal deposits to prevent disclosure of information that could reveal supervisory ratings.
2026-08-27Federal Deposit Insurance Corporation
Federal Deposit Insurance Corporation raises reciprocal deposit exclusion cap to USD 30 billion in interim final rule
The Federal Deposit Insurance Corporation raised the reciprocal deposits exclusion from brokered deposit treatment to a tiered cap of up to USD 30 billion. The interim final rule also extends agent institution eligibility to well-capitalized banks with CAMELS ratings of 1, 2 or 3 and clarifies when reciprocal deposits are received and when institutions requalify.