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.
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