A proposed rule amending the FDIC's regulations

A proposed rule amending the FDIC's regulations to refl ect a provision in the Dodd-Frank Wall Street Reform and Consumer Protection Act repealing the statutory prohibition against the payment of interest on demand deposits, eff ective July 21, has been issued by the FDIC board of directors. Th e proposed rule applies to all insured state-chartered, nonmember banks.

Th e proposed transfer of the defi nition of "interest" to the FDIC's deposit insurance regulations applies to all insured institutions.

Highlights:

* Section 627 of the DFA repealed the statutory prohibition against the payment of interest on demand …