FDIC Revises QFC Recordkeeping Rules for IDIs in a “Troubled Condition”

On July 18, 2017, the FDIC adopted a final rule (the “Final Rule”) amending its recordkeeping requirements for qualified financial contracts (“QFCs”) for insured depository institutions in a “troubled condition.”

These rules are intended to provide the FDIC with the information about a troubled IDI’s QFCs to allow the FDIC to exercise its authority as receiver under the Federal Deposit Insurance Act within the statutory time limits. The Final Rule more closely aligns the FDIC’s existing recordkeeping requirements under Part 371 with the final rule adopted by the Secretary of the Treasury for QFC recordkeeping in connection with the Orderly Liquidation Authority. As a result, the Final Rule expands the information that IDIs in a troubled condition must maintain for their and certain of their subsidiaries’ QFCs compared to the prior Part 371, while aligning the format in which such information must be maintained to the requirements of the Treasury QFC rule.