The Federal Deposit Insurance Corp. may require some large banks it takes over to help it freeze checking accounts and other accounts with balances as low as $30,000.
The FDIC describes the possible new “provisional hold percentage” and “account balance threshold” guidelines in a notice of proposed rulemaking published today in the Federal Register.
The proposed rules would apply to FDIC-insured banks with at least $2 billion in domestic deposits and at least 250,000 deposit accounts.
The rules also would apply to FDIC-insured banks with at least $2 billion in domestic deposits and at least $20 billion in assets.
Banks in those size categories would have to “adopt mechanisms that would, in the event of the institution’s failure: provide the FDIC with standard deposit account and customer information, and allow the FDIC to place and release holds on liability accounts, including deposits,” officials write in the preamble to a draft of the proposed hold mechanism regulations.
The FDIC estimates the hold and hold releasing mechanism regulations would apply to about 159 insured financial institutions.
The FDIC also has proposed regulations that would govern how it calculates deposit account balances for failed banks of all sizes.
The FDIC needs new hold capabilities because of the possibility that it would have to handle the failure of a large, complicated, multistate bank, officials write.