5.2.2 Entity based insurance calculation

FDIC Insurance coverage is extended at a legal entity level. This means that all accounts belonging to the same counterparty, same right and capacity, and same legal entity are aggregated for insurance determination.

In the domestic scenario, the coverage is at the legal entity level, meaning that branches of a legal entity are not separately covered but are included in the legal entity coverage.

In certain instances, wherein a branch is separately covered from the legal entity, such as a branch of a foreign legal entity, the application provisions identifiers to capture and process this information.

The granularity of Insurance calculation as per FDIC Part 370 is as follows:

Insured Legal Entity/Separately insured Branch – Ownership Right and Capacity- Customer

Where the beneficial owner is the customer

Insured Legal Entity/Separately insured Branch – Ownership Right and Capacity- Customer – Beneficial Party

Where the beneficial owner is a party other than the customer. In this case, the insurance is provided on a pass through basis.

Note:

Banking facilities in overseas military bases are considered to be domestic and are treated accordingly i.e. All the domestic branches of a domestic legal entity are covered by FDIC along with the legal entity itself. This includes overseas military operations of a domestic legal entity. There is no separate coverage at the branch level.

Deposits held in multiple US branches of a foreign legal entity, in the same right and capacity, are aggregated together for the purposes of FDIC insurance. The coverage is not at an individual US branch level.