Photo Credit: vichie81
By: Sharon Geiger, Quality Control Review Specialist
I realize this article is coming
out a little late, however, for those banks that are not yet prepared, you
still have time to show the regulators that you have prepared for the December
31, 2012 expiration.
While there is still a small
chance that the regulatory agencies will choose to extend the Insurance program
as it pertains to Non-Interest Bearing Transaction Accounts (NIBTA), we are
getting closer to the December 31, 2012 expiration date with no word on any
Therefore, what are Banks going
to have to do to be in compliance? Well, here’s a list of how to be prepared
should the rule expire.
all “Non-Interest Bearing Account” holders advance notice in writing that the
Temporary unlimited insurance coverage for these deposits is scheduled to
expire on December 31, 2012, and therefore, starting January 1, 2013, the FDIC
will only insure these accounts up to $250,000 per depositor.
If you haven’t already sent out these notices
with your November statements, I would suggest that you get them out in your
You could also send
a separate notice all together as it’s not required necessarily to actually be
in the statements.
However, from a cost
perspective, it’s just easier to include in the statements. Note:
The FDIC has come up with model language that
you could use for your statement notices at this link
from your branches the “Notice of Changes in Temporary FDIC Insurance
Coverage”. And ensure that any other
lobby postings you have containing this language are changed. You could also use the model language as a
lobby posting. Also, check your teller
windows and it might be a good idea to put up the notice at the teller windows
your website disclosures. The FDIC link
above provides examples of a long form notice and a short form notice. Some Banks are talking about putting the
short form notice in the statements and using the long form notice in the lobby
and on their website.