FDIC Raises Reciprocal Deposit Cap for Commercial Accounts, Effective Sept. 1

The FDIC's interim final rule, adopted August 27 and effective September 1, substantially increases the ceiling on reciprocal deposits banks can hold without brokered-deposit classification, giving banks more capacity to compete for large commercial operating accounts. Operators in treasury and deposit-taking businesses should reassess funding-mix constraints and competitive positioning for business cash.