Bankowość · 6.10.1994

Forms, Instructions, and Reports

On April 5, 1994, the FDIC published for comment a proposal to rescind a section of its regulations on notification of rapid growth. The FDIC is publishing herewith a final rule to rescind this section. The section, known as the ``rapid growth rule,'' currently requires all insured banks, with the exception of insured bankers' banks, to give the FDIC prior notice of planned rapid growth as a result of any ``special funding plan or arrangement.'' For purposes of this requirement, such a funding plan is any effort to increase the assets of a bank through the solicitation and acceptance of fully insured deposits obtained from or through the mediation of brokers or affiliates (which would include insured brokered deposits); the solicitation of fully insured deposits outside a bank's normal trade area; or secured borrowings, including repurchase agreements. This rescission is intended to lessen the regulatory burden on banks which are currently also required to comply with the FDIC's brokered deposit regulation and the prompt corrective action rule, both of which were designed in part to address the same risks resulting from rapid growth.