FDIC Extends Comment Deadline on Deposit Record-Keeping Proposal

WASHINGTON – The Federal Deposit Insurance Corp. has extended the comment period on a plan that would require large banks to keep better track of their insured deposits, while making clear it will not extend the plan to community banks.

Comments for the proposal are now due on June 25, the agency announced Friday. It also noted that dragging community banks into the plan was out of the question.

"The FDIC is not proposing or considering making these requirements applicable to smaller institutions," the statement said.

Originally published in February, the agency's plan would require all financial institutions with more than 2 million accounts on the books to improve tracing of insured deposits in order to have the information at hand quickly in times of crisis.

It has already drawn sharp rebukes from industry groups, which say that such a plan would be costly to implement and that failure at the 36 banks that would be targeted under the current proposal is highly unlikely.

The FDIC originally asked for comments by next Thursday on the plan's applicability, implementation and estimated costs. In its statement Friday, the agency noted that it had previously published a report calculating the rule's expected costs on banks.