ARTICLE
22 October 2019

FDIC Supplements Proposed Revisions To Certain Interest Rate Restrictions

CW
Cadwalader, Wickersham & Taft LLP

Contributor

Cadwalader, established in 1792, serves a diverse client base, including many of the world's leading financial institutions, funds and corporations. With offices in the United States and Europe, Cadwalader offers legal representation in antitrust, banking, corporate finance, corporate governance, executive compensation, financial restructuring, intellectual property, litigation, mergers and acquisitions, private equity, private wealth, real estate, regulation, securitization, structured finance, tax and white collar defense.
The FDIC supplemented proposed rule revisions on interest rate restrictions for certain insured depository institutions
United States Finance and Banking

The FDIC supplemented proposed rule revisions on interest rate restrictions for certain insured depository institutions ("IDIs"). The proposal would affect IDIs that are less than "well capitalized" (i.e., not significantly exceeding the required minimum for capital ratios). The supplement updated the regulatory flexibility analysis provided in the proposal.

As previously covered, the proposal is designed to (i) make the national rate cap "more balanced, reflective and dynamic" and (ii) allow less than well-capitalized institutions to offer a maximum of 90 percent of the highest rate paid on a deposit product within an institution's local market areas.

The regulatory flexibility analysis was updated to align it with changes made to the Small Business Administration's monetary-based size standards pursuant to August 19, 2019 inflation adjustments.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Mondaq uses cookies on this website. By using our website you agree to our use of cookies as set out in our Privacy Policy.

Learn More