Share This Page

Request for Comments on Interest Rate Restrictions Applicable to Institutions That Are Less Than Well Capitalized

September 10, 2019 / Source: FDIC

Financial Institution Letters

September 9, 2019

Request for Comments on Interest Rate Restrictions Applicable to Institutions That Are Less Than Well Capitalized

Printable Format:

FIL-49-2019 – PDF (PDF Help)


The FDIC has issued a Notice of Proposed Rulemaking (NPR) seeking comment on proposed revisions to its regulations on interest rate restrictions that apply to insured depository institutions that are less than well capitalized.

Statement of Applicability to Institutions with Total Assets Under $1 billion: This Financial Institution Letter applies to all FDIC-insured banks and savings associations, including community institutions.


  • Under the proposed rule, the FDIC would amend the methodology for calculating the national rate and national rate cap for specific deposit products. The national rate would be the weighted average of rates offered on a given deposit product by all reporting institutions, weighted by domestic deposit share.
  • The national rate cap applicable to less than well-capitalized institutions for particular products would be set at the higher of: (1) the 95th percentile of rates paid by insured depository institutions weighted by each institution's share of total domestic deposits or (2) the proposed national rate (i.e., the weighted average) plus 75 basis points.
  • The proposed rule would also modify the current local rate cap calculation and process by allowing institutions that are less than well capitalized to offer up to 90 percent of the highest rate paid on a particular deposit product in the institution's local market area.
  • The FDIC is seeking comments regarding the proposed approach as well as other alternative approaches discussed in the notice.
  • The NPR was published in the Federal Register on September 4, 2019. Comments will be accepted until November 4, 2019.
  • This FIL will become inactive 6 months after issuance.

Suggested Distribution:

  • FDIC-Insured Institutions

Suggested Routing:

  • Chief Executive Officer
  • Chief Financial Officer

Related Topics:

  • Brokered Deposits



  • Division of Risk Management Supervision –
  • Thomas F. Lyons, Chief, Policy and Program Development, (202) 898-6850 or [email protected];
  • Judy Gross, Senior Policy Analyst, (202) 898-7047 or [email protected]


  • Division of Insurance and Research –
  • Ashley Mihalik, Chief, Banking and Regulatory Policy, (202) 898-3793 or [email protected]



Access FDIC Financial Institution Letters (FILs) on the FDIC's website

Subscribe to receive FILs electronically

Paper copies of FDIC FILs may be obtained through the FDIC's Public Information Center, 3501 Fairfax Drive, Room E 1002, Arlington, VA 22226 (877-275-3342 or 703-562-2200).