Following a contentious board meeting, the FDIC proposed specific brokered-deposit standards building on the questions posed in a 2018 advance notice of proposed rulemaking.  In concert with a pending proposal to revise how brokered-deposit interest rates are calculated, the agency is considering changes that could dramatically alter which entities are considered to be deposit brokers and thus which funds may be subject to various limitations.  If finalized, deposits gathered through fintech partnerships and inter-affiliate funding streams would be considerably less likely to count as brokered deposits, allowing insured depository institutions (IDIs) to build strategies based on them and price these deposits more competitively or even aggressively.

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