Interest Rate Restrictions on Insured Depository Institutions That Are Not Well Capitalized

• Date: December 28, 2009
• Source: www.fdic.gov

The FDIC is amending its  regulations relating to the interest rate  restrictions that apply to insured  depository institutions that are not well capitalized. Under the amended  regulations, such insured depository  institutions generally will be permitted  to offer the ‘‘national rate’’ plus 75 basis  points. The ‘‘national rate’’ will be  defined, for deposits of similar size and  maturity, as a simple average of rates  paid by all insured depository  institutions and branches for which data  are available. For those cases in which  the FDIC determines that the national  rate as published on the FDIC’s Web site  does not represent the prevailing rate in  a particular market, as indicated by  available evidence, the depository  institution will be permitted to offer the  prevailing rate in that market plus 75  basis points. The purpose of this final  rule is to clarify the interest rate  restrictions for certain insured  depository institutions and examiners 

Effective Date:This rule is effective December 3, 2009

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