(Reuters) – The U.S. Federal Deposit Insurance Corporation (FDIC) on Monday called on some banks to fix their financial statements for “incorrectly” reducing the amount of uninsured deposits.
The banking crisis earlier this year has prompted regulators to draft new rules to make the industry more resilient.
In May, the FDIC had said it would charge a “special assessment” fee to recoup losses to its deposit insurance fund from the collapse of three U.S. banks.
That fee would be determined by the amount of uninsured deposits a bank held at the end of last year, the banking regulator had said.
The regulator said some banks were “not reporting estimated uninsured deposits in accordance with the instructions.”
“The chief financial officer (or the individual performing an equivalent function) and multiple directors of each insured depository institutions are required to attest to the correctness (of the report),” the FDIC wrote in a letter posted on its website.
Banks could submit up to three years of revisions, or more if appropriate, the regulator added.
With banking authorities tightening the standards, the companies are worried that going too far could add undue pressure to the industry at a time when many lenders are expecting demand for loans to taper off later in the year.
(Reporting by Niket Nishant in Bengaluru; Editing by Shweta Agarwal)
