Washington D.C. – In a shocking move, the Federal Deposit Insurance Corporation (FDIC) has extended the compliance date for a portion of its new FDIC signage and advertising rule, giving banks extra time to get their houses in order.
The new rule, which was approved by the FDIC Board in December 2023, aims to modernize the rules governing the use of official FDIC signs and advertising statements. But in a surprise twist, the FDIC has extended the compliance date for subpart A of the rule from January 1, 2025, to May 1, 2025. The extension applies to provisions requiring the use of the FDIC official sign, official digital sign, and other signs differentiating deposits and non-deposit products across all banking channels.
The FDIC says the extension is in response to feedback from banks and other banking industry participants, who claimed they would need more time to implement the new regulatory requirements. But critics are questioning the move, citing concerns about consumer confidence and the potential for banks to take advantage of the extra time to engage in questionable practices.
The new rule also establishes a new black and navy blue FDIC official digital sign, which banks will be required to display near the name of the bank on all bank websites and mobile applications. Banks will also be required to display the FDIC official digital sign on certain automated teller machines.
Since the 1930s, the black and gold FDIC official sign displayed at bank branch teller windows has given bank customers confidence that their deposited funds are safe. But with the rise of digital banking, the FDIC says it’s time to update the rules to ensure that consumers have the same level of confidence in digital channels.
The final rule also modernizes requirements for the display of the FDIC official sign in bank branches and other physical premises to account for evolving designs of bank branches and other physical bank locations. But with the extra time, some are worried that banks will use it as an opportunity to push the boundaries of what’s acceptable.
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Key Facts
- Agency: FDIC
- Category: Fraud & Financial Crimes
- Source: Official Source â†â€â€ÂÂÂ
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