CONTACT: Laura Peavey
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Forum Responds to FDIC Request for Information on Deposits
The Forum urges the FDIC for a data-driven assessment on bank deposits before pursuing regulatory changes.
Washington, D.C. – The Federal Deposit Insurance Corporation (FDIC) should engage in a comprehensive, data-driven assessment of bank deposits before proposing any regulatory change, the Financial Services Forum told the agency Friday.
Responding to a Request for Information (RFI) on deposits issued by the FDIC, the Forum outlined several areas for the agency to engage in its confidential supervisory collection and analysis process. In addition, the Forum suggested broadening publicly available data on operational deposits in the Call Report, which would help improve public transparency on deposit funding in the banking sector.
The Forum also noted that the RFI is motivated by and devotes significant attention to the March 2023 regional bank failures. In its submission, the Forum provided context to these events and highlighted that Forum members – the eight U.S.-based Global Systemically Important Banks – operate strong balance sheets with ample liquidity and have been a source of strength in times of financial market stress, including during the March 2023 banking turmoil.
“The Forum strongly believes that the current proposal to modify the existing brokered deposit rule must be accompanied by a detailed, data-based analysis of the characteristics and risks of the affected deposits before the proposal is moved forward,” Forum President and CEO Kevin Fromer said. “Importantly, such data and analysis must inform any future proposed changes to the regulatory treatment of these or other deposit types.”
The Forum’s full letter can be found here.
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The Financial Services Forum is an economic policy and advocacy organization whose members are the eight largest and most diversified financial institutions headquartered in the United States. Forum member institutions are a leading source of lending and investment in the United States and serve millions of consumers, businesses, investors, and communities throughout the country. The Forum promotes policies that support savings and investment, financial inclusion, deep and liquid capital markets, a competitive global marketplace, and a sound financial system.
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