Download:
pdf |
pdfFFIEC 051 Draft Reporting Form and Instructions for Call Report
Revisions with Effective Dates Beginning with the June 30, 2021, Report Date
AF
T
The following draft reporting form and draft instructions, both of which are subject to change,
present the pages from the FFIEC 051 Call Report as they are proposed to be revised, subject to
final approval by the U.S. Office of Management and Budget. These proposed revisions are
described in the federal banking agencies’ initial Paperwork Reduction Act (PRA) Federal
Register notices published in the Federal Register on December 18, 2020 (see FIL-117-2020,
dated December 30, 2020) and on February 5, 2021 (see FIL-11-2021, dated February 23, 2021).
As discussed in the agencies’ final PRA Federal Register notice published in the Federal Register
on May 24, 2021, the agencies are proceeding with the revisions to the FFIEC 051 Call Report,
with certain modifications.
D
R
The initial and final PRA Federal Register notices are available on the FFIEC’s webpage for the
FFIEC 051 Call Report.
Draft as of May 24, 2021
1
Table of Contents
Impacted Schedule/ Instruction Book Entry
Page
Effective as of the September 30, 2021, Report Date
4
6
7
AF
T
1. Schedule RC-E, Memorandum items 1.h and 1.i
a. Report Form
b. Instructions
c. Glossary
Clarifications for the June 30, 2021 Call Report
9
11
D
R
2. Schedule RC-E, Memorandum item 1.f
a. Instructions
3. Brokered Deposits Glossary Entry
2
D
R
AF
T
Pages 4 through 7 are effective as of the September 30, 2021, report date.
3
FFIEC 051
Page 26 of 65
RC-13
Schedule RC-E—Deposit Liabilities
Nontransaction
Accounts
Transaction Accounts
(Column A)
Total Transaction
Accounts (Including
Total Demand
Deposits)
Dollar Amounts in Thousands
Memoranda
Amount
RCON
Amount
(Column C)
Total
Nontransaction
Accounts
(Including MMDAs)
RCON
Amount
B549
B550
2202
2520
2203
2530
1.
2.
3.
B551
2213
B552
2236
4.
5.
2216
2377
6.
2385
7.
AF
T
Deposits of:
1. Individuals, partnerships, and corporations .....
2. U.S. Government ......................................
3. States and political subdivisions in the U.S. ....
4. Commercial banks and other depository
institutions in the U.S. ................................
5. Banks in foreign countries ...........................
6. Foreign governments and official institutions
(including foreign central banks) ...................
7. Total (sum of items 1 through 6) (sum of
columns A and C must equal Schedule RC,
item 13.a) ................................................
RCON
(Column B)
Memo: Total
Demand Deposits1
(Included in
Column A)
2215
2210
Dollar Amounts in Thousands
1. Selected components of total deposits (i.e., sum of item 7, columns A and C):
RCON
Amount
Memorandum item 1.a is to be completed semiannually in the June and December reports only.
D
R
a. Total Individual Retirement Accounts (IRAs) and Keogh Plan accounts .............................
b. Total brokered deposits ...........................................................................................
c. Brokered deposits of $250,000 or less (fully insured brokered deposits)2 ...........................
d. Maturity data for brokered deposits:
(1) Brokered deposits of $250,000 or less with a remaining maturity of one year or less
(included in Memorandum item 1.c above) ..............................................................
(2) Not applicable
(3) Brokered deposits of more than $250,000 with a remaining maturity of one year or
less (included in Memorandum item 1.b above) .......................................................
e. Preferred deposits (uninsured deposits of states and political subdivisions in the U.S.
reported in item 3 above which are secured or collateralized as required under state law)
(to be completed for the December report only) ............................................................
f. Estimated amount of deposits obtained through the use of deposit listing services
that are not brokered deposits ..................................................................................
Insert A
g. Total reciprocal deposits..........................................................................................
2. Components of total nontransaction accounts
(sum of Memorandum items 2.a through 2.d must equal item 7, column C above):
a. Savings deposits:
(1) Money market deposit accounts (MMDAs) .............................................................
(2) Other savings deposits (excludes MMDAs) ............................................................
b. Total time deposits of less than $100,000 ...................................................................
c. Total time deposits of $100,000 through $250,000 .......................................................
d. Total time deposits of more than $250,000 ..................................................................
e. Individual Retirement Accounts (IRAs) and Keogh Plan accounts of $100,000 or more
included in Memorandum items 2.c and 2.d above........................................................
6835
2365
HK05
M.1.a.
M.1.b.
M.1.c.
HK06
M.1.d.(1)
K220
M.1.d.(3)
5590
M.1.e.
K223
JH83
M.1. f.
M.1.g.
6810
0352
6648
J473
J474
M.2.a.(1)
M.2.a.(2)
M.2.b.
M.2.c.
M.2.d.
F233
M.2.e.
1. Includes interest-bearing and noninterest-bearing demand deposits.
2. The dollar amount used as the basis for reporting in Memorandum item 1.c reflects the deposit insurance limit in effect on the report date.
4
09/2021
INSERT A
Memorandum items 1.h.(1) through 1.h.(4) and 1.i. are to be
completed semiannually in the June and December reports only.
RCON
Amount
XXXX
XXXX
XXXX
XXXX
XXXX
M.1.h.(1)
M.1.h.(2)
M.1.h.(3)
M.1.h.(4)
M.1.i.
D
R
AF
T
Dollar Amounts in Thousands
h. Sweep deposits:
(1) Fully insured, affiliate sweep deposits………………………………………………………..
(2) Not fully insured, affiliate sweep deposits….………………………………………………
(3) Fully insured, non-affiliate sweep deposits…………………………………………………
(4) Not fully insured, non-affiliate sweep deposits…………………………………………..
i. Total sweep deposits that are not brokered deposits…………….…………………………
5
09/2021
.
FFIEC 051
RC-E - DEPOSITS
Memoranda
Caption and Instructions
1.h
Sweep deposits. Report in the appropriate subitem the indicated sweep deposit data (as
defined in the Glossary entry for “sweep deposits”).
1.h.(1)
Fully insured, affiliate sweep deposits. Report the amount of affiliate sweep deposits that
are fully insured.
1.h.(2)
Not fully insured, affiliate sweep deposits. Report the amount of affiliate sweep deposits
for which less than the entire amount of the deposits is covered by deposit insurance.
1.h.(3)
Fully insured, non-affiliate sweep deposits. Report the amount of non-affiliate sweep
deposits that are fully insured.
1.h.(4)
Not fully insured, non-affiliate sweep deposits. Report the amount of non-affiliate sweep
deposits for which less than the entire amount of the deposits is covered by deposit
insurance.
1.i
Total sweep deposits that are not brokered deposits. Report the total amount of sweep
deposits that are excluded from being reported as brokered deposits.
D
R
AF
T
Item No.
FFIEC 051
RC-E-14a
(3-19 9-21)
RC-E - DEPOSITS
6
FFIEC 051
GLOSSARY
Sweep Deposits: “Sweep deposit” means a deposit held at the reporting institution by a customer
or counterparty through a contractual feature that automatically transfers to the reporting
institution from another regulated financial company at the close of each business day amounts
under the agreement governing the account from which the amount is being transferred. (Note:
This definition of a “sweep deposit” is distinctly separate from the existing “retail sweep
arrangements” and “retail sweep programs” definitions in the “Reporting of Retail Sweep
Arrangements Affecting Transaction and Nontransaction Accounts” section of the Glossary
entry for “Deposits.”)
“Affiliate sweep deposit” means a sweep deposit that is deposited in accordance with a contract
between a customer or counterparty and the reporting institution, a controlled subsidiary of the
reporting institution, or a company that is a controlled subsidiary of the same top-tier company
of which the reporting institution is a controlled subsidiary.
AF
T
“Non-affiliate sweep deposit” means a sweep deposit that is deposited in accordance with a
contract between a customer or counterparty and an entity that is not affiliated with the reporting
institution.
“Affiliate retail sweep deposit” means a sweep deposit that is deposited in accordance with a
contract between a “retail customer or counterparty” and the reporting institution, a controlled
subsidiary of the reporting institution, or a company that is a controlled subsidiary of the same
top-tier company of which the reporting institution is a controlled subsidiary.
“Non-affiliate retail sweep deposit” means a sweep deposit that is deposited in accordance with
a contract between a “retail customer or counterparty” and an entity that is not affiliated with the
reporting institution.
“Retail customer or counterparty” means a customer or counterparty that is:
D
R
(1) An individual;
(2) A business customer, but solely if and to the extent that:
(i) The reporting institution manages its transactions with the business customer, including
deposits, unsecured funding, and credit facility and liquidity facility transactions, in the
same way it manages its transactions with individuals;
(ii) Transactions with the business customer have liquidity risk characteristics that are
similar to comparable transactions with individuals; and
(iii) The total aggregate funding raised from the business customer is less than $1.5 million;
or
(3) A living or testamentary trust that:
(i) Is solely for the benefit of natural persons;
(ii) Does not have a corporate trustee; and
(iii) Terminates within 21 years and 10 months after the death of grantors or beneficiaries of
the trust living on the effective date of the trust or within 25 years, if applicable under
state law.
FFIEC 051
A-118
(3-17 9-21)
GLOSSARY
7
D
R
AF
T
Pages 9 through 16 are clarifications that will be included in the June 30, 2021 Instruction Book updates.
8
FFIEC 051
RC-E - DEPOSITS
Memoranda
Caption and Instructions
1.e
(cont.)
In other states, banks must participate in a state public deposits program in order to receive
deposits from the state or from political subdivisions within the state in amounts that would
not be covered by federal deposit insurance. Under state law in such states, the value of the
securities a bank must pledge to the state is calculated annually, but represents only a
percentage of the uninsured portion of its public deposits. Institutions participating in the
state program may potentially be required to share in any loss to public depositors incurred in
the failure of another participating institution. As long as the value of the securities pledged
to the state exceeds the calculated requirement, all of the bank's uninsured public deposits
are protected from loss under the operation of the state program if the bank fails and,
therefore, all of the uninsured public deposits are considered "preferred deposits." For
example, a bank participating in a state public deposits program has $1,600,000 in public
deposits under the program from four political subdivisions and $700,000 of this amount is
uninsured, given the currently applicable $250,000 deposit insurance limit. The bank's most
recent calculation indicates that it must pledge securities with a value of at least $77,000 to
the state in order to participate in the state program. The bank has pledged securities with an
actual value of $80,000. The bank should report the $700,000 in uninsured public deposits
as "preferred deposits."
1.f
Estimated amount of deposits obtained through the use of deposit listing services that
are not brokered deposits. Report in this Memorandum item the estimated amount of all
nonbrokered deposits obtained through the use of deposit listing services included in total
deposits (in domestic offices) (Schedule RC-E, sum of item 7, columns A and C), regardless
of size or type of deposit instrument.
AF
T
Item No.
D
R
The objective of this Memorandum item is not to capture all deposits obtained through the
Internet, such as deposits that a bank receives because a person or entity has seen the rates
the bank has posted on its own Web site or on a rate-advertising Web site that has picked up
and posted the bank’s rates on its site without the bank’s authorization. Rather, the objective
of this Memorandum item is to collect the estimated amount of deposits obtained as a result
of action taken by the bank to have its deposit rates listed by a listing service, and the listing
service is compensated for this listing either by the bank whose rates are being listed or by
the persons or entities who view the listed rates. A bank should establish a reasonable and
supportable estimation process for identifying listing service deposits that meet these
reporting parameters and apply this process consistently over time. However, for those
nonbrokered deposits acquired through the use of a deposit listing service that offers deposit
tracking, the actual amount of listing service deposits, rather than an estimate, should be
reported.
When a nonbrokered time deposit obtained through the use of a deposit listing service is
renewed or rolled over at maturity, the time deposit should continue to be reported in this item
as a listing service deposit if the reporting institution continues to have its time deposit rates
listed by a listing service and the listing service is compensated for this listing as described
above. In contrast, if the reporting institution no longer has its time deposit rates listed by a
listing service when a nonbrokered listing service time deposit matures and is renewed or
rolled over by the depositor, the time deposit would no longer need to be reported as a listing
service deposit after the renewal or rollover. The reporting institution should continue to
report nonbrokered listing service deposits other than time deposits in this item as long as
the reporting institution continues to have its deposit rates for the same type of deposit
(e.g., NOW account, money market deposit account) listed by a listing service and the listing
service is compensated for this listing as described above.
FFIEC 051
RC-E-13
(3-196-21)
RC-E - DEPOSITS
9
FFIEC 051
RC-E - DEPOSITS
Memoranda
Item No.
Caption and Instructions
1.f
(cont.)
If the reporting institution has merged with or acquired another institution that had obtained
nonbrokered deposits through the use of deposit listing services, these deposits would
continue to be regarded as listing service deposits after the merger or acquisition. In this
situation, the reporting institution should determine whether it must continue to report these
deposits as listing service deposits after the merger or acquisition in accordance with the
guidance in the preceding paragraph.
Exclude from this item all brokered deposits reported in Schedule RC-E, Memorandum
item 1.b.
AF
T
A deposit listing service is a company that compiles information about the interest rates
offered on deposits, such as certificates of deposit, by insured depository institutions. A
particular company could be a deposit listing service (compiling information about certificates
of deposits) as well as a deposit broker (facilitating the placement of certificates of deposits).
A deposit listing service is not a deposit broker if it does not meet all of the following four
criteria are metthe “deposit broker” definition and notably the criteria under 12 CFR
337.6(a)(5)(iii) for when a person is considered “engaged in the business of facilitating the
placement of deposits”:
(1) The listing service does not have legal authority, contractual or otherwise, to close the
account or move the third party’s funds to another insured depository institution; is not
involved in placing deposits. Any funds to be invested in deposit accounts are remitted
directly by the depositor to the insured depository institution and not, directly or indirectly,
by or through the listing service.
R
(2) The listing service is not involved in negotiating or setting rates, fees, terms, or conditions
for the deposit account; orperson or entity providing the listing service is compensated
solely by means of subscription fees (i.e., the fees paid by subscribers as payment for
their opportunity to see the rates gathered by the listing service) and/or listing fees (i.e.,
the fees paid by depository institutions as payment for their opportunity to list or “post”
their rates). The listing service does not require a depository institution to pay for other
services offered by the listing service or its affiliates as a condition precedent to being
listed.
D
(3) The fees paid by depository institutions are flat fees: they are not calculated on the basis
of the number or dollar amount of deposits accepted by the depository institution as a
result of the listing or “posting” of the depository institution’s rateslisting service is not
engaged in matchmaking activities as defined in 12 CFR 337.6(a)(5)(iii)(C)(1).
(4) In exchange for these fees, the listing service performs no services except (A) the
gathering and transmission of information concerning the availability of deposits; and/or
(B) the transmission of messages between depositors and depository institutions
(including purchase orders and trade confirmations). In publishing or displaying
information about depository institutions, the listing service must not attempt to steer
funds toward particular institutions (except that the listing service may rank institutions
according to interest rates and also may exclude institutions that do not pay the listing
fee). Similarly, in any communications with depositors or potential depositors, the listing
service must not attempt to steer funds toward particular institutions.
FFIEC 051
RC-E-14
(6-213-19)
RC-E - DEPOSITS
10
FFIEC 051
GLOSSARY
Banks, U.S. and Foreign (cont.):
For purposes of the Consolidated Reports of Condition and Income, the term "U.S. branches and
agencies of foreign banks" covers:
(1) the U.S. branches and agencies of foreign banks;
(2) the U.S. branches and agencies of foreign official banking institutions, including central banks,
nationalized banks, and other banking institutions owned by foreign governments; and
(3) investment companies that are chartered under Article XII of the New York State banking law and
that are majority-owned by one or more foreign banks.
Banks in foreign countries –The institutional composition of "banks in foreign countries" includes:
AF
T
(1) the foreign-domiciled head offices and branches of:
(a) foreign commercial banks (including foreign-domiciled banking subsidiaries of U.S. banks and
Edge and Agreement corporations);
(b) foreign savings banks or discount houses;
(c) nationalized banks not functioning either as central banks, as foreign development banks, or
as banks of issue;
(d) other similar foreign institutions that accept short-term deposits; and
(2) the foreign-domiciled branches of U.S. banks.
See also "International Banking Facility (IBF)."
Banks in Foreign Countries: See "banks, U.S. and foreign."
Bill-of-Lading Draft: See "commodity or bill-of-lading draft."
R
Brokered Deposits: As defined in Section 337.6(a) of the FDIC’s regulations, the term “brokered
deposit” means “any deposit that is obtained, directly or indirectly, by or through any deposit broker.”
Brokered deposits include both those in which the entire beneficial interest in a given bank deposit
account or instrument is held by a single depositor and those in which the deposit broker sells
participations in a given bank deposit account or instrument to one or more investors.
The meaning of the term “brokered deposit” depends on the meaning of the term “deposit broker.”
The term “deposit broker” is defined broadly in Section 29(g) of the Federal Deposit Insurance Act
and Section 337.6(a)(5) of the FDIC’s regulations. Under Section 337.6(a)(5), the term “deposit broker”
and means:
D
(1) any person engaged in the business of placing deposits, or facilitating the placement of deposits,
of third parties with insured depository institutions, or the business of placing deposits with insured
depository institutions for the purpose of selling interests in those deposits to third parties, and
(2) an agent or trustee who establishes a deposit account to facilitate a business arrangement with an
insured depository institution to use the proceeds of the account to fund a prearranged loan.
•
Any person engaged in the business of placing deposits of third parties with insured depository
institutions;
•
Any person engaged in the business of facilitating the placement of deposits of third parties with
insured depository institutions;
•
Any person engaged in the business of placing deposits with insured depository institutions for
the purpose of selling those deposits or interests in those deposits to third parties; and
FFIEC 051
A-11
(12-186-21)
GLOSSARY
11
FFIEC 051
- GLOSSARY
Brokered Deposits (cont.):
• An agent or trustee who establishes a deposit account to facilitate a business arrangement with
an insured depository institution to use the proceeds of the account to fund a prearranged loan.
The FDIC’s regulations under Section 337.6(a)(5) further provide that a person is:
AF
T
(1) “Engaged in the business of placing deposits” of third parties if that person receives third party
funds and deposits those funds at more than one insured depository institution; and
(2) “Engaged in the business of facilitating the placement of deposits” of third parties by, while
engaged in business, with respect to deposits placed at more than one insured depository
institution, engaging in one or more of the following activities:
• The person has legal authority, contractual or otherwise, to close the account or move
the third party’s funds to another insured depository institution;
• The person is involved in negotiating or setting rates, fees, terms, or conditions for the
deposit account; or
• The person engages in matchmaking activities, which occurs if the person proposes
deposit allocations at, or between, more than one bank based upon both the particular
deposit objectives of a specific depositor or depositor’s agent, and the particular deposit
objectives of specific banks, except in the case of deposits placed by a depositor’s agent
with a bank affiliated with the depositor’s agent. A proposed deposit allocation is based
on the particular objectives of:
i. A depositor or depositor’s agent when the person has access to specific financial
information of the depositor or depositor’s agent and the proposed deposit
allocation is based upon such information; and
ii. A bank when the person has access to the target deposit-balance objectives of
specific banks and the proposed deposit allocation is based upon such
information.
Brokered CDs that are placed by or through the assistance of third parties with insured depository
institutions are brokered deposits.
R
Section 337.6(a)(5)(v)(I)(4) defines brokered CD as a deposit placement arrangement in which a master
certificate of deposit is issued by an insured depository institution in the name of the third party that has
organized the funding of the certificate of deposit, or in the name of a custodian or a sub-custodian of
the third party, and the certificate is funded by individual investors through the third party, with each
individual investor receiving an ownership interest in the certificate of deposit, or a similar deposit
placement arrangement that the FDIC determines is arranged for a similar purpose.
D
Section 337.6(a)(5) of the FDIC’s regulations further also provides that the definition ofterm “deposit
broker” is subject to a list of exceptions. According to the list of exceptions, the following parties are
not treated as a deposit brokerdoes not include:
(1) an insured depository institution, with respect to funds placed with that depository institution;
(2) an employee of an insured depository institution, with respect to funds placed with the employing
depository institution;
(3) a trust department of an insured depository institution, if the trust or other fiduciary relationship in
question has not been established for the primary purpose of placing funds with insured
depository institutions;
(4) the trustee of a pension or other employee benefit plan, with respect to funds of the plan;
(5) a person acting as a plan administrator or an investment adviser in connection with a pension plan
FFIEC 051
A-12
(12-186-21)
GLOSSARY
12
FFIEC 051
GLOSSARY
AF
T
Brokered Deposits (cont.):
or other employee benefit plan provided that that person is performing managerial functions with respect
to the plan;
(6) the trustee of a testamentary account;
(7) the trustee of an irrevocable trust (other than a trustee who establishes a deposit account to
facilitate a business arrangement with an insured depository institution to use the proceeds of the
account to fund a prearranged loan), as long as the trust in question has not been established for
the primary purpose of placing funds with insured depository institutions;
(8) a trustee or custodian of a pension or profit-sharing plan qualified under Section 401(d) or 403(a)
of the Internal Revenue Code of 1986;
(9) an agent or nominee whose primary purpose is not the placement of funds with depository
institutions;1 or
(10) an insured depository institution acting as an intermediary or agent of a U.S. government
department or agency for a government sponsored minority or women-owned depository
institution deposit program.
Section 337.6(a)(5) describes what it means to be “an agent or nominee whose primary purpose is not
the placement of funds with depository institutions.” More specifically, the primary purpose exception
applies when the primary purpose of the agent’s or nominee’s business relationship with its customers
is not the placement of funds with depository institutions.
The following business relationships are designated as meeting the primary purpose exception, subject
to applicable notice and reporting requirements set forth in Section 303.243(b)(3), with respect to a
particular business line:
Less than 25 percent of the total assets that the agent or nominee has under administration for its
customers is placed at depository institutions;
•
100 percent of depositors’ funds that the agent or nominee places, or assists in placing, at
depository institutions are placed into transactional accounts that do not pay any fees, interest, or
other remuneration to the depositor;
R
•
A property management firm places, or assists in placing, customer funds into deposit accounts
for the primary purpose of providing property management services;
•
The agent or nominee places, or assists in placing, customer funds into deposit accounts for the
primary purpose of providing cross-border clearing services to its customers;
•
The agent or nominee places, or assists in placing, customer funds into deposit accounts for the
primary purpose of providing mortgage servicing;
•
A title company places, or assists in placing, customer funds into deposit accounts for the primary
purpose of facilitating real estate transactions;
•
A qualified intermediary places, or assists in placing, customer funds into deposit accounts for the
primary purpose of facilitating exchanges of properties under section 1031 of the Internal
Revenue Code;
•
A broker dealer or futures commission merchant places, or assists in placing, customer funds into
deposit accounts in compliance with 17 CFR 240.15c3-3(e) or 17 CFR 1.20(a);
D
•
FFIEC 051
A-12a
(12-186-21)
GLOSSARY
13
FFIEC 051
GLOSSARY
Brokered Deposits (cont.):
• The agent or nominee places, or assists in placing, customer funds into deposit accounts for the
primary purpose of posting collateral for customers to secure credit-card loans;
The agent or nominee places, or assists in placing, customer funds into deposit accounts for the
primary purpose of paying for or reimbursing qualified medical expenses under section 223 of the
Internal Revenue Code;
•
The agent or nominee places, or assists in placing, customer funds into deposit accounts for the
primary purpose of investing in qualified tuition programs under section 529 of the Internal
Revenue Code;
•
The agent or nominee places, or assists in placing, customer funds into deposit accounts to
enable participation in the following tax-advantaged programs: individual retirement accounts
under section 408(a) of the Internal Revenue Code, Simple individual retirement accounts under
section 408(p) of the Internal Revenue Code, or Roth individual retirement accounts under
section 408A of the Internal Revenue Code;
•
A Federal, State, or local agency places, or assists in placing, customer funds into deposit
accounts to deliver funds to the beneficiaries of government programs; and
•
The agent or nominee places, or assists in placing, customer funds into deposit accounts
pursuant to such other relationships as the FDIC specifically identifies as a designated business
relationship that meets the primary purpose exception.
AF
T
•
An agent or nominee that does not rely on a designated business exception described in this section
must receive an approval under the application process in 12 CFR 303.243(b) in order to qualify for the
primary purpose exception to the deposit broker definition.
R
Insured depository institutions that receive deposits through an entity that has a pending application for
a primary purpose exception with the FDIC should report such deposits as brokered deposits if and
until the FDIC approves such application.
D
Notwithstanding these ten exceptions, the term “deposit broker” (as amended on September 23, 1994,
by the Riegle Community Development and Regulatory Improvement Act of 1994) includes any insured
depository institution that is not well capitalized (as defined in Section 38 of the Federal Deposit
Insurance Act, Prompt Corrective Action), and any employee of any such institution, which engages,
directly or indirectly, in the solicitation of deposits by offering rates of interest (with respect to such
deposits) which are significantly higher than the prevailing rates of interest on deposits offered by other
insured depository institutions in such depository institution's normal market area.2 Only those deposits
accepted, renewed, or rolled over on or after June 16, 1992, in connection with this form of deposit
solicitation are to be reported as brokered deposits.
For further information on the solicitation and acceptance of brokered deposits by less than well
capitalized insured depository institutions, see Section 337.6(b) and 337.7(g) 6(b) of the FDIC's
regulations
1
For purposes of applying this ninth exception from the definition of deposit broker, "primary purpose" does not mean
"primary activity," but should be construed as "primary intent." Whether the “primary purpose” exception applies
should be determined based on the meaning of this exception as stated in the FDIC’s regulations and as interpreted
in the FDIC’s guidance.
.
FFIEC 051
A-12b
(12-186-21)
GLOSSARY
14
FFIEC 051
- GLOSSARY
Brokered Deposits (cont.):
In addition, deposit instruments of the reporting bank that are sold to brokers, dealers, or underwriters
(including both bank affiliates of the reporting bank and nonbank subsidiaries of the reporting bank's
parent holding company) who then reoffer and/or resell these deposit instruments to one or more
investors, regardless of the minimum denomination which the investor must purchase, are considered
brokered deposits.
AF
T
In some cases, brokered deposits are issued in the name of the depositor whose funds have been
placed in a bank by a deposit broker. In other cases, a bank’s deposit account records may indicate
that the funds have been deposited in the name of a third party custodian for the benefit of others
(e.g., “XYZ Corporation as custodian for the benefit of others,” or “Custodial account of XYZ
Corporation”). Unless the custodian meets one of the specific exceptions from the “deposit broker”
definition in Section 29 of the Federal Deposit Insurance Act and Section 337.6(a) of the FDIC’s
regulations, these custodial accounts should be reported as brokered deposits in Schedule RC-E,
Deposit Liabilities.
A deposit listing service whose only function is to provide information on the availability and terms of
accounts is not facilitating the placement of deposits and therefore is not a deposit broker per se .
However, if a deposit broker uses a deposit listing service to identify an institution offering a high rate on
deposits and then places its customers’ funds at that institution, the deposits would be brokered deposits
and the institution should report them as such in Schedule RC-E. The designation of these deposits as
brokered deposits is based not on the broker’s use of the listing service but on the placement of the
deposits in the institution by the deposit broker.
D
R
Section 202 of the Economic Growth, Regulatory Relief, and Consumer Protection Act, enacted on
May 24, 2018, amends Section 29 of the Federal Deposit Insurance Act to except a capped amount of
reciprocal deposits from treatment as, and from being reported as, brokered deposits for qualifying
institutions. The FDIC has amended its regulations to conform to the treatment of reciprocal deposits
set forth in Section 202. As defined in Section 337.6(e)(2)(v) of the FDIC’s regulations, “reciprocal
deposits” means “deposits received by an agent institution through a deposit placement network with
the same maturity (if any) and in the same aggregate amount as covered deposits placed by the agent
institution in other network member banks.” As defined in Section 327.8(q) of the FDIC’s regulations,
“brokered reciprocal deposits” are “reciprocal deposits as defined in Section 337.6(e)(2)(v) of the
FDIC’s regulations that are not excepted from an institution’s brokered deposits pursuant to
Section 337.6(e)” of the FDIC’s regulations. Brokered reciprocal deposits should be reported as
(1) brokered deposits and included in Schedule RC-E, Memorandum item 1.b, and, if applicable,
Memorandum items 1.c and 1.d, and (2) brokered reciprocal deposits and included in Schedule RC-O,
item 9 and, if applicable, item 9.a. An institution should report its total reciprocal deposits,
including any reciprocal deposits that are reported as brokered deposits, in Schedule RC-E,
Memorandum item 1.g. For further information on reciprocal deposits and brokered reciprocal
deposits, see the instructions for Schedule RC-E, Memorandum items 1.b and 1.g, and the examples
after the instructions for Schedule RC-E, Memorandum item 7.
2 Any
deposit accepted, renewed, or rolled over by a well capitalized institution before September 23, 1994, in
connection with this form of deposit solicitation should continue to be reported as a brokered deposit as long as the
deposit remains outstanding under the terms in effect before September 23, 1994. Notwithstanding the amendment
to the "deposit broker" definition, all institutions that obtain deposits, directly or indirectly, by or through any other
deposit broker must report such funds as brokered deposits in the Consolidated Report of Condition.
FFIEC 051
A-12c
(12-186-21)
GLOSSARY
15
FFIEC 051
GLOSSARY
Brokered Deposits (cont.):
Reliance on Previous Staff Advisory Opinions and Interpretations
As stated in the FDIC’s rule on Brokered Deposits and Interest Rate Restrictions, the effective date of
the rule was April 1, 2021. Full compliance of the rule was extended to January 1, 2022. The extended
compliance date allows entities to continue to rely upon existing staff advisory opinions or other
interpretations that predated the final rule in determining whether deposits placed by or through an
agent or nominee are brokered deposits. After January 1, 2022, entities may no longer rely on upon
staff advisory opinions or other interpretations that predated the final rule, and to the extent that such
entities instead opt to rely on a designated exception for which a notice is required, a notice must be
filed. After January 1, 2022, the advisory opinions and other publicly available interpretations will be
moved to inactive status.
AF
T
Fully insured brokered deposits are brokered deposits (including brokered deposits that represent
retirement deposit accounts as defined in Schedule RC-O, Memorandum item 1) with balances of
$250,000 or less or with balances of more than $250,000 that have been participated out by the
deposit broker in shares of $250,000 or less. As more fully described in the instructions for
Schedule RC-E, (Part I on the FFIEC 031), Memorandum item 1.c, fully insured brokered deposits also
include (a) certain brokered certificates of deposit issued in $1,000 amounts under a master certificate
of deposit issued by a bank to a deposit broker in an amount that exceeds $250,000 and (b) certain
brokered transaction accounts and money market deposit accounts denominated in amounts of $0.01
and established and maintained by the deposit broker (or its agent) as agent, custodian, or other
fiduciary for the broker’s customers.
For additional information on brokered deposits, refer to the FDIC’s “Identifying, Accepting and Reporting
Brokered Deposits: Frequently Asked Questions” at
https://www.fdic.gov/news/news/financial/2016/fil16042b.pdf.
R
Broker's Security Draft: A broker's security draft is a draft with securities or title to securities attached
that is drawn to obtain payment for the securities. This draft is sent to a bank for collection with
instructions to release the securities only on payment of the draft.
D
Business Combinations: The accounting and reporting standards for business combinations are set
forth in ASC Topic 805, Business Combinations (formerly FASB Statement No. 141 (revised 2007),
"Business Combinations"). ASC Topic 805 requires that all business combinations, which are defined
as the acquisition of assets and assumption of liabilities that constitute a business, be accounted for
using the acquisition method of accounting. The formation of a joint venture, the acquisition of a group
of assets that do not constitute a business, and a transfer of net assets or exchange of equity interests
between entities under common control are not considered business combinations and therefore are
not accounted for using the acquisition method of accounting.
FFIEC 051
A-13
(12-186-21)
GLOSSARY
16
| File Type | application/pdf |
| File Modified | 2021-05-23 |
| File Created | 2021-02-05 |