FDIC Board Meeting Discusses Capital Rule, Deposit Insurance

FDIC News

Published March 19th, 2026

Detected March 28th, 2026

Summary

The FDIC Board of Directors met to discuss proposed rulemakings on regulatory capital rules for banking organizations and a final rule clarifying deposit insurance coverage for U.S. bank branches in the Federated States of Micronesia, the Marshall Islands, and Palau. The board also rescinded a statement of policy on failed bank acquisitions.

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What changed

The FDIC Board of Directors has proposed significant updates to its regulatory capital framework, specifically targeting Category I and II banking organizations and those with substantial trading activity. These proposals aim to modernize the regulatory capital rules and the standardized approach for risk-weighted assets. Concurrently, a final rule has been issued to clarify deposit insurance coverage for branches of U.S. banks operating in the Federated States of Micronesia, the Marshall Islands, and Palau, ensuring clarity for these specific international operations. Additionally, the FDIC rescinded its Statement of Policy on Qualifications for Failed Bank Acquisitions.

These proposed rules will require careful review by affected banking organizations, particularly larger institutions and those with significant trading operations, to understand the new capital requirements and risk-weighting methodologies. The final rule on deposit insurance offers clarity for a specific subset of international branches. Compliance officers should prepare for potential new reporting and capital management obligations stemming from the proposed capital rules, although specific compliance deadlines are not yet established as these are proposed. The rescission of the failed bank acquisition policy may alter the landscape for such transactions.

What to do next

Review proposed rulemaking on Regulatory Capital Rule for Category I and II Banking Organizations
Review proposed rulemaking on Regulatory Capital Rules: Regulatory Capital and Standardized Approach for Risk-weighted Assets
Note the clarification of deposit insurance coverage for specific U.S. bank branches abroad and the rescission of the failed bank acquisition policy

Source document (simplified)

Pursuant to the provisions of the “Government in the Sunshine Act” (5 U.S.C. § 552b), notice was given that the Federal Deposit Insurance Corporation's Board of Directors would meet in open session to consider the matters.

Materials and information relative to the Board actions are available here:

Notice of Proposed Rulemaking: Regulatory Capital Rule: Category I and II Banking Organizations, Banking Organizations with Significant Trading Activity, and Optional Adoption for Other Banking Organizations

Notice of Proposed Rulemaking: Regulatory Capital Rules: Regulatory Capital and Standardized Approach for Risk-weighted Assets

Final Rule: Clarification of Deposit Insurance Coverage for Branches of U.S. Banks in the Federated States of Micronesia, the Marshall Islands, and Palau

Rescission of Statement of Policy on Qualifications for Failed Bank Acquisitions

Votes

| Action | For | Against | Abstention |
| --- | --- | --- | --- |
| Notice of Proposed Rulemaking: Regulatory Capital Rule: Category I and II Banking Organizations, Banking Organizations with Significant Trading Activity, and Optional Adoption for Other Banking Organizations | Chairman Hill

Director Gould

Director Vought | | |
| Notice of Proposed Rulemaking: Regulatory Capital Rules: Regulatory Capital and Standardized Approach for Risk-Weighted Assets | Chairman Hill

Director Gould

Director Vought | | |
| Final Rule: Clarification of Deposit Insurance Coverage for Branches of U.S. Banks in the Federated States of Micronesia, the Marshall Islands, and Palau | Chairman Hill

Director Gould

Director Vought | | |
| Notice: **** Rescission of Statement of Policy on Qualifications for Failed Bank Acquisitions | Chairman Hill

Director Gould

Director Vought | | |
Last Updated: March 20, 2026

Named provisions

Regulatory Capital Rule: Category I and II Banking Organizations, Banking Organizations with Significant Trading Activity, and Optional Adoption for Other Banking Organizations Regulatory Capital Rules: Regulatory Capital and Standardized Approach for Risk-weighted Assets Clarification of Deposit Insurance Coverage for Branches of U.S. Banks in the Federated States of Micronesia, the Marshall Islands, and Palau Rescission of Statement of Policy on Qualifications for Failed Bank Acquisitions