The FDIC is drafting a proposed rule to require banks to maintain ledgers of “for benefit of” accounts opened by financial technology companies, which would allow the banks to identify how much end-user money they’re holding, Bloomberg Law reported. The proposal could come before the FDIC board as early as its September meeting, it added.
According to Bloomberg, banks would still be able to partner with middleman companies under the proposed rule. However, they would be required to have constant access to the third-party ledger and reconcile data each day, the report noted.
FDIC Chairman Martin Gruenberg wouldn’t confirm whether a proposal was coming when asked about it during a press briefing today. However, he pointed to the collapse of fintech Synapse as an illustration of the risk to banks and depositors “when banks rely on third parties to be the conduits for deposits” as well as “the need for adequate recordkeeping.”
“As I’ve indicated in the past, this is a matter of attention for the FDIC, and we may consider regulatory proposals in this regard,” he said.
ABA Banking Journal Staff
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