Brokered Deposit

Brokered Deposit

A large sum of money composed of many smaller sums offered to a broker by investors. The small sums are compiled into a brokered deposit to qualify for a higher interest rate when the broker deposits it into an investment vehicle.
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This rulemaking is the first of a two-part effort the FDIC plans to take to revisit the brokered deposit rules.
"There are times in the brokered deposit market when those funds are actually cheaper...
Keating's top lieutenant, Judy Wisher, once said in court testimony that the Regardie's piece was "very, very damaging," that it curtailed the thrift's brokered deposit program and caused lenders to refuse to renew some of its holding company's credit lines.
While that approach has some appeal, it has the obvious disadvantage that it would eliminate those aspects of the brokered deposit market that serve a constructive purpose.
Please contact the Lending Desk or your Regional Account Manager if you have any questions on factoring the favorable impact the above-market dividend has on FHLBank advance rates and for ideas about how to compare the all-in cost to various deposit pricing strategies and brokered deposit funding options.
"The bulk of what you are seeing is our brokered deposit activity, which is necessary to fund the loan demand we've had," said Nat Bothwell, ANB's marketing director.
In February 2019, the FDIC published an advance notice of proposed rulemaking in the Federal Register seeking comment on its regulations for the interest rate restrictions and brokered deposits. The FDIC received nearly 60 comments from individuals, banking organizations, and trade groups.
Brokered deposits decreased USD 22.3 million, or 18.0%, during the first six months of 2019.
INDB's funding costs have been a strength relative to other banks of its size, and Fitch expects that the combined entity's deposit betas will increase from INDB's past experience over the near to medium term due to BHBK's usage of higher-cost time deposits and brokered deposits. Fitch views INDB's historical ability to grow core deposits positively which could result in lower deposit betas and funding costs over time.
Integration cost was finalized during the third quarter of 2018, South State said, and included a $20.6 million decrease in interest-bearing deposits resulting from brokered deposits acquired in the merger.
Simmons also emerged from its shopping spree with twice as much in brokered deposits. Those are large deposits aggregated and shopped around by third-party brokers, as opposed to core deposits from individual customers.
(15) Prior to 2011, core deposits are defined as domestic deposits less the sum of insured brokered deposits and time deposits greater than $100,000.