WASHINGTON — The Federal Deposit Insurance Corp. proposed steps Tuesday that could open the door to U.S. banks satisfying a United Kingdom mandate to treat foreign and domestic depositors more equitably.

The new proposal amounts to a green light for banks to allow withdrawals by a foreign depositor both at an overseas branch and on U.S. soil where the bank is headquartered. Such "dual pay" accounts would undo a policy — opposed in the U.K. — that requires the FDIC to favor domestic depositors over foreign ones in the payment of failure claims above the standard U.S. deposit insurance limit.

Limited Time Offer

Save $400 off your subscription. Special offer ends April 30, 2017.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.