The FDIC will host a roundtable on Friday morning to discuss Brokered Deposits It posted a statement entitled, "Core and Brokered Deposit Study as Mandated by Section 1506 of the Dodd Frank Wall Street Reform and Consumer Protection Act", which says, "Section 1506 of the Dodd-Frank Wall Street and Reform Consumer Protection Act requires that the FDIC conduct a study to evaluate: The definition of core deposits for the purpose of calculating insurance premiums; The potential impact on the Deposit Insurance Fund of revising the definitions of brokered deposits and core deposits to better distinguish between them; Differences between core deposits and brokered deposits and their role in the economy and U.S. banking sector; The potential stimulative effect on local economies of redefining core deposits; and, The competitive parity between large institutions and community banks resulting from redefining core deposits and brokered deposits.... The banking industry has seen significant technological advances and other innovations in the deposit gathering process since the brokered deposit regulation was implemented. This study provides us with a unique opportunity to look at the current range of deposit types and the brokered deposit regulation and other regulations and supervisory rules to determine whether these rules and regulations are still relevant in light of these innovations. To that end, the FDIC would appreciate input on how industry changes have affected deposit stability and franchise value and whether these innovations warrant changes to statutory or regulatory treatment of deposits."
