What is a Core Deposit and Why Does it Matter? Legislative and Regulatory Actions Regarding FDIC-Insured Bank Deposits Pursuant to the Dodd-Frank Act

Abstract

The paper looks at the changes in the Federal Deposit Insurance Corporation assessment process since the passage of the Dodd-Frank legislation. It outlines some of the changes made to the insurance premium rates as well as the calculation of the deposit assessment base, and examines how the burden of payment is now more equitably distributed between large and small banks. The paper also examines the issue of core vs. brokered deposits. The author discusses the rule making process regarding brokered deposits in 2010 and 2011 from a firsthand perspective and also comments on the public information gathering process mandated by the Dodd-Frank law with respect to brokered deposits.

Keywords: FDIC, Dodd-Frank, deposit insurance, brokered deposits