[Federal Register Volume 86, Number 246 (Tuesday, December 28, 2021)]
[Notices]
[Pages 73766-73767]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-28143]


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FEDERAL DEPOSIT INSURANCE CORPORATION


Notice of the FDIC's Response to Exception Requests Pursuant to 
Recordkeeping for Timely Deposit Insurance Determination

AGENCY: Federal Deposit Insurance Corporation (FDIC).

ACTION: Notice of the FDIC's response to exception requests pursuant to 
the recordkeeping for timely deposit insurance determination rule.

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SUMMARY: In accordance with its rule regarding recordkeeping for timely 
deposit insurance determination, the FDIC is providing notice that it 
has granted time-limited exception relief to two covered institutions 
from the information technology system and recordkeeping requirements 
applicable to official items (subject accounts) in order for those 
covered institutions to integrate certain information technology 
systems that hold the requisite information to calculate deposit 
insurance in accordance with part 370.

DATES: The FDIC's grant of exception relief is effective as of December 
20, 2021.

FOR FURTHER INFORMATION CONTACT: Cassandra Knighton, Section Chief, 
Division of Complex Institution Supervision and Resolution; 
[email protected]; (972) 761-2802.

SUPPLEMENTARY INFORMATION: The FDIC granted a time-limited exception 
request to two covered institutions pursuant to the FDIC's rule 
entitled ``Recordkeeping for Timely Deposit Insurance Determination,'' 
codified at 12 CFR part 370 (part 370 or the Rule).\1\ Part 370 
generally requires covered institutions to implement the information 
technology system and recordkeeping capabilities needed to quickly 
calculate

[[Page 73767]]

the amount of deposit insurance coverage available for each deposit 
account in the event of failure. Pursuant to Sec.  370.8(b)(1), one or 
more covered institutions may submit a request in the form of a letter 
to the FDIC for an exception from one or more of the requirements of 
part 370 if circumstances exist that would make it impracticable or 
overly burdensome to meet those requirements. Pursuant to Sec.  
370.8(b)(2), the FDIC publishes a notice of its response to each 
exception request in the Federal Register. Pursuant to Sec.  
370.8(b)(3), a covered institution may rely upon another covered 
institution's exception request which the FDIC has previously granted 
by notifying the FDIC that it will invoke relief from certain part 370 
requirements and demonstrating that the covered institution has 
substantially similar facts and circumstances to those of the covered 
institution that has already received the FDIC's approval. The 
notification letter must also include the information required under 
Sec.  370.8(b)(1) and cite the applicable notice published pursuant to 
Sec.  370.8(b)(2). Unless informed otherwise by the FDIC within 120 
days after the FDIC's receipt of a complete notification for exception, 
the exception will be deemed granted subject to the same conditions set 
forth in the FDIC's published notice.
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    \1\ 12 CFR part 370.
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    These grants of relief will be subject to ongoing FDIC review, 
analysis, and verification during the FDIC's routine part 370 
compliance tests. The FDIC presumes each covered institution is meeting 
all the requirements set forth in the Rule unless relief has otherwise 
been granted. These grants of relief may be rescinded or modified upon: 
Discovery of misrepresentation; material change of circumstances or 
conditions related to the subject accounts; or failure to satisfy 
conditions applicable to each. The following exceptions were granted by 
the FDIC as of December 20, 2021.

I. Exception Relief for Additional Time To Integrate Information 
Technology Systems That Contain the Requisite Information To Calculate 
Deposit Insurance for Official Items

    The FDIC granted time-limited exception relief from part 370's 
information technology system requirements set forth in Sec.  370.3 and 
recordkeeping requirements set forth in Sec.  370.4 applicable to 
official items, as described in 12 CFR 370.4(c), for up to 18 months 
after the compliance date. One covered institution requested exception 
relief from the recordkeeping and information technology system 
requirements with respect to interest payments made to customers via 
official items and official items used in the accounts payable process 
to remit vendor payments. The covered institution previously completed 
system enhancements that provide the name, address, and amount of the 
official items; however, the government identification number, where it 
is available, is not immediately accessible by its part 370 calculation 
system because the systems that create the payments are not connected 
to the core deposit and accounts payable systems that store the 
customer information. The covered institution requested exception 
relief in order to develop, test, implement, and validate its planned 
solution that requires it to source the government identification 
number from the systems that contain customer information and provide 
that data into the part 370 calculation system. The other covered 
institution requested exception relief from the information technology 
system and recordkeeping requirements for official items for which the 
covered institution may have sufficient information to make a deposit 
insurance calculation but does not have the capability to retrieve the 
information or reliably tie it to the payee. The covered institution 
does not currently have a method for tracing official items back to the 
original loan or deposit servicing information technology systems in a 
manner that would permit it to associate government identification 
numbers, if available, with other payee information in the covered 
institution's payment systems. The covered institution requested 
exception relief in order to assess and implement a solution to this 
issue that would seek to appropriately balance the requirements of the 
Rule and consumer data security and other considerations.
    As conditions of this exception relief, these covered institutions 
must: Provide documentation that describes the process put in place to 
manually calculate deposit insurance for the subject accounts in the 
event of failure during the relief period; maintain the capability to 
restrict access to the deposit accounts subject to this exception in 
the event of failure until a deposit insurance determination can be 
made and place all such accounts into the pending file of its part 370 
output files during the relief period; submit a status report to 
[email protected] at the midpoint of the exception relief period; and 
immediately bring to the FDIC's attention any change of circumstances 
or conditions.

Federal Deposit Insurance Corporation.

    Dated at Washington, DC, on December 20, 2021.
James P. Sheesley,
Assistant Executive Secretary.
[FR Doc. 2021-28143 Filed 12-27-21; 8:45 am]
BILLING CODE 6714-01-P