4.2.5 Deposit Stability Identification

A stable deposit is a deposit whose entire outstanding balance is fully covered by deposit insurance provided by Federal Deposit Insurance Corporation (FDIC) of USA and which satisfies one of the following conditions:

1. It is held in a transactional account by the depositor

   OR

2. The depositor has an established relationship with the reporting legal entity.
   The FDIC covers all deposit accounts, including checking and savings accounts, money market deposit accounts and certificates of deposit. The standard insurance amount is $250,000 per depositor, per insured bank, for an ownership category. The application expects the limit to be provided at a customer-ownership category combination. This limit is allocated to the insurance eligible accounts based on a waterfall approach such that it maximizes insurance coverage from the perspective of deposit stability identification. Once the insurance limit is allocated, deposit stability is identified based on insurance coverage and other conditions. Only the fully covered accounts meeting the other stability criteria are considered stable deposits.

   Note:

   • Deposit Insurance Calculations are done as per FDIC Part 370 guidelines. See section Deposit Insurance Calculations as per FDIC 370 for details.
   • Insurance eligible account means an account which is covered by the deposit insurance scheme.
   • Fully covered, in the context of US Federal Reserve on LCR, means that, the entire outstanding balance of the deposit account must be covered by insurance.