Notice of Proposed Rulemaking on FDIC Official Signs, Advertisement of Membership, False Advertising, Misrepresentation of Insured Status, and Misuse of the FDIC’s Name or Logo

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FDIC Financial Institution Letters › Notice of Proposed Rulemaking on FDIC Official Signs, Advertisement of Membership, False Advertising, Misrepresentation of Insured Status, and Misuse of the FDIC’s Name or Logo

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This section of the FEDERAL REGISTER

contains notices to the public of the proposed

issuance of rules and regulations. The

purpose of these notices is to give interested

persons an opportunity to participate in the

rule making prior to the adoption of the final

rules.

Proposed Rules

Federal Register

40767

Vol. 90, No. 160

Thursday, August 21, 2025

1 89 FR 3504 (Jan. 18, 2024).

2 Id.

3 Id.

4 89 FR 3504.

5 89 FR 3504.

FEDERAL DEPOSIT INSURANCE

CORPORATION

12 CFR Part 328

RIN 3064–AG14

FDIC Official Signs, Advertisement of

Membership, False Advertising,

Misrepresentation of Insured Status,

and Misuse of the FDIC’s Name or

Logo

AGENCY: Federal Deposit Insurance

Corporation.

ACTION: Notice of proposed rulemaking.

SUMMARY: The Federal Deposit

Insurance Corporation (FDIC) is seeking

comment on a proposal that would

amend signage requirements for insured

depository institutions’ (IDIs) digital

deposit-taking channels and automated

teller machines (ATMs) and like

devices. The proposed changes are

intended to address implementation

issues and sources of potential

confusion that have arisen following the

adoption of current signage

requirements for these banking

channels. The proposal would provide

additional flexibility to IDIs while also

enabling consumers to better

understand when they are conducting

business with an IDI and when their

funds are protected by the FDIC’s

deposit insurance coverage.

DATES: Comments must be received by

the FDIC no later than October 20, 2025.

ADDRESSES: You may submit comments,

identified by RIN 3064–AG14, by any of

the following methods:

• FDIC Website: https://

www.fdic.gov/federal-register-

publications. Follow instructions for

submitting comments on the agency

website.

• Email: Comments@fdic.gov. Include

RIN 3064–AG14 in the subject line of

the message.

• Mail: Jennifer M. Jones, Deputy

Executive Secretary, Attention:

Comments—RIN 3064–AG14, Federal

Deposit Insurance Corporation, 550 17th

Street NW, Washington, DC 20429

IC Website: https://

www.fdic.gov/federal-register-

publications. Follow instructions for

submitting comments on the agency

website.

• Email: Comments@fdic.gov. Include

RIN 3064–AG14 in the subject line of

the message.

• Mail: Jennifer M. Jones, Deputy

Executive Secretary, Attention:

Comments—RIN 3064–AG14, Federal

Deposit Insurance Corporation, 550 17th

Street NW, Washington, DC 20429.

• Hand Delivery to FDIC: Comments

may be hand-delivered to the guard

station at the rear of the 550 17th Street

NW building (located on F Street) on

business days between 7 a.m. and 5 p.m.

• Public Inspection: Comments

received, including any personal

information provided, may be posted

without change to https://www.fdic.gov/

federal-register-publications.

Commenters should submit only

information that the commenter wishes

to make available publicly. The FDIC

may review, redact, or refrain from

posting all or any portion of any

comment that it may deem to be

inappropriate for publication, such as

irrelevant or obscene material. The FDIC

may post only a single representative

example of identical or substantially

identical comments, and in such cases

will generally identify the number of

identical or substantially identical

comments represented by the posted

example. All comments that have been

redacted, as well as those that have not

been posted, that contain comments on

the merits of the proposed rule will be

retained in the public comment file and

will be considered as required under all

applicable laws. All comments may be

accessible under the Freedom of

Information Act.

Follow the search instructions on

https://www.regulations.gov to view

public comments.

This proposal, all comments received,

and a summary of not more than 100

words of the proposed rule pursuant to

the Providing Accountability Through

Transparency Act of 2023 are available

at https://www.fdic.gov/resources/

regulations/federal-register-

publications/

er the Freedom of

Information Act.

Follow the search instructions on

https://www.regulations.gov to view

public comments.

This proposal, all comments received,

and a summary of not more than 100

words of the proposed rule pursuant to

the Providing Accountability Through

Transparency Act of 2023 are available

at https://www.fdic.gov/resources/

regulations/federal-register-

publications/.

FOR FURTHER INFORMATION CONTACT:

Division of Depositor and Consumer

Protection: Monika Jansen, Senior

Policy Analyst, (202) 898–6781,

MoJansen@fdic.gov; Edward Hof, Senior

Policy Analyst, (202) 898–7213,

EdwHof@fdic.gov; Meron Wondwosen,

Assistant Director, (202) 898–3544,

MeWondwosen@fdic.gov; Legal

Division: Chantal Hernandez, Counsel,

(202) 898–6678, ChHernandez@fdic.gov;

Nathan Raygor, Senior Attorney, (202)

898–8688, NRaygor@fdic.gov; Shane

Bogusz, Attorney, (571) 366–0212,

SBogusz@fdic.gov.

SUPPLEMENTARY INFORMATION:

I. Policy Objectives

On December 20, 2023, the FDIC

adopted a final rule that, among other

things, amended the FDIC’s sign and

advertisement of membership

regulations under subpart A of 12 CFR

part 328 (the 2023 Final Rule).1 In that

final rule, the FDIC stated that it was

seeking to bring the certainty and

confidence historically provided by the

FDIC official sign found at banks’ teller

windows to other banking channels

used by consumers in the modern

banking landscape.2 Under the 2023

Final Rule, the FDIC established sign

requirements across all banking

channels (physical premises, digital

deposit-taking channels, and ATMs and

like devices)

that it was

seeking to bring the certainty and

confidence historically provided by the

FDIC official sign found at banks’ teller

windows to other banking channels

used by consumers in the modern

banking landscape.2 Under the 2023

Final Rule, the FDIC established sign

requirements across all banking

channels (physical premises, digital

deposit-taking channels, and ATMs and

like devices). The FDIC further stated

that it intended for the new signage

requirements to better align with how

depositors conduct business with IDIs

today and to help inform consumers

when their funds are FDIC-insured.3

The 2023 Final Rule requirements

intended to more clearly distinguish

deposit products (in which depositors’

funds are insured) from non-deposit

products and to help consumers

distinguish IDIs from non-banks in the

digital age.4 Moreover, as explained in

the 2023 Final Rule, the FDIC intended

to permit flexibility for IDIs and other

firms in the marketing of their products

and services.5

Under this proposed rulemaking, the

FDIC seeks to minimize identified

implementation issues, reduce burden,

and address potential consumer

confusion with respect to signage

requirements for digital deposit-taking

channels and ATMs and like devices. In

particular, the FDIC proposes to amend

signage requirements in 12 CFR 328.4

and 328.5. The FDIC is not proposing

substantive amendments to other

provisions under 12 CFR part 328.

II. Background

A. Statutory Authority and FDIC

Regulations

The FDIC maintains stability and

public confidence in the nation’s

financial system by, among other things,

insuring the deposits of all IDIs. Section

18(a) of the Federal Deposit Insurance

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A. Statutory Authority and FDIC

Regulations

The FDIC maintains stability and

public confidence in the nation’s

financial system by, among other things,

insuring the deposits of all IDIs. Section

18(a) of the Federal Deposit Insurance

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Federal Register / Vol. 90, No. 160 / Thursday, August 21, 2025 / Proposed Rules

6 12 U.S.C. 1828(a)(1).

7 12 U.S.C. 1828(a)(4).

8 12 CFR 328.5(b).

9 See 12 CFR 328.4(c) and (e) and 328.5(d).

10 See 12 CFR 328.4(d) and 328.5(g).

11 See 89 FR 3504, 3507 (Jan. 18, 2024).

12 See 89 FR 84261 (Oct. 22, 2024). The

compliance date for amendments to subpart B

remained January 1, 2025.

13 See id. Compliance with all other subpart A

amendments was generally required by May 1,

2025.

14 See id.

15 See 90 FR 11659 (Mar. 11, 2025).

16 89 FR 3511 (Jan. 18, 2024).

Act (FDI Act) 6 governs IDI sign and

advertising statement requirements and

grants the FDIC authority to prescribe

regulations with respect to these

requirements. The regulations

implementing signage and

advertisement requirements are

contained in §§ 328.0 through 328.8 of

subpart A of 12 CFR part 328 (subpart

A). Subpart A applies to IDIs, including

insured branches of foreign banks.

In addition, section 18(a)(4) of the FDI

Act 7 prohibits any person from

misusing the name or logo of the FDIC

or from engaging in false advertising or

making knowing misrepresentations

about deposit insurance. Regulations

governing these prohibitions are

contained in §§ 328.100 through

328.109 of subpart B of 12 CFR part 328.

B. Previous Rulemaking

In the 2023 Final Rule, the FDIC

updated signage requirements to apply

across all banking channels to account

for how depositors conduct business

with IDIs in the modern banking

landscape; namely the increasing use of

digital channels and new services

provided by ATMs and like devices

ons are

contained in §§ 328.100 through

328.109 of subpart B of 12 CFR part 328.

B. Previous Rulemaking

In the 2023 Final Rule, the FDIC

updated signage requirements to apply

across all banking channels to account

for how depositors conduct business

with IDIs in the modern banking

landscape; namely the increasing use of

digital channels and new services

provided by ATMs and like devices. In

particular, in the 2023 Final Rule, the

FDIC established an FDIC official digital

sign.8 The FDIC’s rules require IDIs to

display that sign on certain pages of its

digital deposit-taking channels and

ATMs and like devices.9 Moreover, the

FDIC requires IDIs to display non-

deposit signage to differentiate insured

deposits from non-deposit products on

digital deposit-taking channels and

ATMs and like devices.10 As stated in

the 2023 Final Rule, the FDIC intended

for IDIs’ use of the FDIC official digital

sign and non-deposit signage to help

consumers better understand when

consumers are conducting business with

an IDI and when their funds are FDIC-

insured.

The amendments made in the 2023

Final Rule took effect on April 1, 2024;

however, full compliance with the

amendments was not required until

January 1, 2025, to provide additional

opportunity for IDIs to establish

processes and systems and make

technological updates necessary to

implement the new regulatory

requirements.11 Based upon feedback

from IDIs and other industry

participants, in October 2024, the FDIC

delayed the compliance date for the

subpart A amendments to May 1, 2025,

to provide additional time for IDIs to

put in place processes and systems and

make technological updates.12

In March 2025, the FDIC delayed the

compliance date for 12 CFR 328.5,

which governs signage requirements for

digital deposit-taking channels, and the

compliance date for 12 CFR 328.4,

which includes analogous requirements

related to an IDI’s ATMs and like

devices, from May 1, 2025 to March 1,

2026.13 The delay was intended to allow

the F

ses and systems and

make technological updates.12

In March 2025, the FDIC delayed the

compliance date for 12 CFR 328.5,

which governs signage requirements for

digital deposit-taking channels, and the

compliance date for 12 CFR 328.4,

which includes analogous requirements

related to an IDI’s ATMs and like

devices, from May 1, 2025 to March 1,

2026.13 The delay was intended to allow

the FDIC to propose changes to the

regulation for public comment to

address implementation concerns and

potential sources of confusion regarding

the requirements.14

C. Need for Rulemaking

Since the 2023 Final Rule was

adopted, the FDIC has observed that, in

practice, certain requirements may raise

operational challenges for IDIs or result

in consumer confusion. Following the

adoption of the 2023 Final Rule, FDIC

staff met with various stakeholders to

discuss questions and concerns relating

to the rule’s requirements.

In particular, stakeholders identified

challenges with implementing the

display of the FDIC official digital and

non-deposit signage on required pages

and screens for digital deposit-taking

channels, ATMs, and like devices. Some

stakeholders stated that the signage

requirements were ‘‘overly prescriptive’’

and ‘‘technical,’’ especially as to the

specifications of the FDIC official digital

sign. Additionally, some stakeholders

stated that IDIs would benefit from

additional flexibility in displaying the

FDIC official digital sign on pages and

screens where space is limited,

particularly with respect to mobile

banking.

Stakeholders also explained the

difficulty in providing appropriate

disclosures for customers moving to

third-party websites or making certain

transfers of funds between different

accounts

lders

stated that IDIs would benefit from

additional flexibility in displaying the

FDIC official digital sign on pages and

screens where space is limited,

particularly with respect to mobile

banking.

Stakeholders also explained the

difficulty in providing appropriate

disclosures for customers moving to

third-party websites or making certain

transfers of funds between different

accounts. Moreover, some stakeholders

raised concerns that the signage

requirements may cause consumers

confusion when insured products are

listed or advertised on the same page as

non-deposit products, potentially

leaving consumers unsure which

products are FDIC-insured deposit

products. These implementation

challenges informed the FDIC’s decision

to twice delay the compliance date for

the amended signage requirements for

digital deposit-taking channels and

ATMs and like devices. As part of the

March 2025 delay of the compliance

date, the FDIC stated its intention to

propose changes for public comment.15

To address concerns and challenges

raised by stakeholders, the FDIC is

proposing to clarify and provide greater

flexibility with respect to the

requirements regarding the (1) FDIC

official digital sign design; (2) display of

signage on digital deposit-taking

channels; and (3) display of signage on

ATMs and like devices. The FDIC

believes the proposed amendments

would advance the FDIC’s policy

objectives of helping consumers to

better understand when they are doing

business with an IDI and when their

funds are FDIC-insured. The proposed

amendments are described in greater

detail below.

III. Description of the Proposed Rule

A. FDIC Official Digital Sign Design

Requirements

Section 328.5(b) sets forth

requirements for the design of the FDIC

official digital sign. Those requirements

include specific text, color, font, and

size requirements, such as specific

hexadecimal color codes and wordmark

sizes

insured. The proposed

amendments are described in greater

detail below.

III. Description of the Proposed Rule

A. FDIC Official Digital Sign Design

Requirements

Section 328.5(b) sets forth

requirements for the design of the FDIC

official digital sign. Those requirements

include specific text, color, font, and

size requirements, such as specific

hexadecimal color codes and wordmark

sizes. The FDIC’s rules provide some

flexibility for cases in which the

required colors would be illegible due to

the color of the background on a digital

deposit-taking channel. In such cases,

the FDIC’s rules allow for the digital

sign to be displayed in white

(hexadecimal color code #FFFFFF).

Since the publication of the 2023

Final Rule, the FDIC has received

questions about the design of the FDIC

official digital sign. Some industry

stakeholders asked whether there is any

flexibility with respect to the color

codes and font sizes, stating that the

prescriptive design standards may

become obsolete and that even slight

variations from the specifications may

result in noncompliance. Other

questioners noted implementation

challenges if a digital deposit-taking

channel was not designed to use the

specified color and size standards or if

a digital deposit-taking channel offered

multiple viewing settings, such as ‘‘dark

mode.’’ As stated in the preamble to the

2023 Final Rule, the FDIC continues to

believe that an easily recognizable,

consistent FDIC official digital sign

conveys the certainty and confidence

historically provided by the physical

FDIC official sign at banks’ teller

windows.16 The FDIC also, however,

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IC continues to

believe that an easily recognizable,

consistent FDIC official digital sign

conveys the certainty and confidence

historically provided by the physical

FDIC official sign at banks’ teller

windows.16 The FDIC also, however,

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Federal Register / Vol. 90, No. 160 / Thursday, August 21, 2025 / Proposed Rules

17 ‘‘Questions and Answers Related to the FDIC’s

Part 328 Final Rule’’ (July 15, 2024), II.A.6.,

available at: https://www.fdic.gov/deposit-

insurance/questions-and-answers-related-fdics-

part-328-final-rule.

18 See id.

appreciates that design standards

requiring specific color and font codes

can present challenges for IDIs and may

be overly prescriptive with respect to

the policy goal.

Under the proposal, IDIs would have

additional flexibility with respect to the

color, font, and size that IDIs may use

when displaying the FDIC official

digital sign. While the proposed rule

would still require the FDIC official

digital sign to be displayed in either a

combination of navy blue and black text

or all-white text, the proposed rule

would no longer prescribe specific

hexadecimal color codes. The proposed

rule would also no longer require a

specific pixel size for the text in the

FDIC official digital sign. In addition,

the proposed rule would provide

additional flexibility by allowing the

font used for the FDIC official digital

sign to be Source Sans Pro Web or a

similar font. Finally, the proposed rule

would eliminate font size requirements

for the text of the FDIC official digital

sign. Although the proposed rule would

no longer provide for a specific font

size, the FDIC official digital sign would

have to be displayed in a clear and

conspicuous manner, which would

ensure its legibility

FDIC official digital

sign to be Source Sans Pro Web or a

similar font. Finally, the proposed rule

would eliminate font size requirements

for the text of the FDIC official digital

sign. Although the proposed rule would

no longer provide for a specific font

size, the FDIC official digital sign would

have to be displayed in a clear and

conspicuous manner, which would

ensure its legibility. The FDIC notes that

12 CFR part 328 does not supersede or

alter any other requirements that may

apply to IDIs, including any

requirements to comply with digital

accessibility rules.

The proposed rule would also

expressly permit IDIs to ‘‘wrap’’ the text

of the FDIC official digital sign to

address space constraints. In response to

questions about whether any of the text

in the FDIC official digital sign may be

wrapped to better fit certain channels,

such as mobile device applications, the

FDIC provided guidance in ‘‘Questions

and Answers Related to the FDIC’s Part

328 Final Rule’’ 17 (Q&As). The Q&As

stated that, in general, the FDIC official

digital sign should be presented as

shown in the 2023 Final Rule, but if the

image does not fit a particular device or

screen, the text of the FDIC official

digital sign may be wrapped to fit the

relevant screen.18 The proposed rule

would adopt the standard discussed in

the Q&As regarding text wrapping.

B. Signage Requirements for IDIs’ Digital

Deposit-Taking Channels

1. FDIC Official Digital Sign

Requirements for Digital Deposit-Taking

Channels

The FDIC is also proposing to more

appropriately focus the display of the

FDIC official digital sign on digital

deposit-taking channel pages and

screens that are most relevant for

consumers. Section 328.5(d) requires

IDIs to display the FDIC official digital

sign on an IDI’s digital deposit-taking

channel’s initial page or homepage of

the website or application; landing or

customer may transact with deposits

the display of the

FDIC official digital sign on digital

deposit-taking channel pages and

screens that are most relevant for

consumers. Section 328.5(d) requires

IDIs to display the FDIC official digital

sign on an IDI’s digital deposit-taking

channel’s initial page or homepage of

the website or application; landing or

customer may transact with deposits.

Following the adoption of the 2023

Final Rule, IDIs and other industry

stakeholders raised questions and

concerns with implementing these

requirements, particularly with respect

to ‘‘landing pages’’ and ‘‘pages where

the customer may transact with

deposits.’’

a. Proposed Removal of Landing Page

Requirement

The FDIC received feedback that

‘‘landing page’’ is not a term commonly

used by IDIs with respect to IDIs’

banking websites and applications, and

industry stakeholders requested further

clarification on the FDIC’s intent. The

FDIC recognizes that the term ‘‘landing

page’’ is duplicative of ‘‘login page,’’

which is a term that is commonly

understood and covers the same

intended types of pages and screens. For

this reason, the FDIC is proposing to

remove the requirement to display the

FDIC official digital sign on an IDI’s

‘‘landing page’’ while retaining the

requirement for IDIs to display the FDIC

official digital sign on the ‘‘login page’’

of an IDI’s digital deposit-taking

channel.

b. Proposed Change to Pages Where the

Customer May Transact With Deposits

With respect to the requirement to

display the FDIC official digital sign on

‘‘pages where the customer may transact

with deposits,’’ IDIs and other

stakeholders requested clarification on

which pages and screens are included

for purposes of this requirement.

Several IDIs informed the FDIC of

technical challenges in implementing

the requirements on ‘‘transact with

deposits’’ pages

osits

With respect to the requirement to

display the FDIC official digital sign on

‘‘pages where the customer may transact

with deposits,’’ IDIs and other

stakeholders requested clarification on

which pages and screens are included

for purposes of this requirement.

Several IDIs informed the FDIC of

technical challenges in implementing

the requirements on ‘‘transact with

deposits’’ pages. Such difficulties may

arise when customizing transaction

screens to provide for the display of the

FDIC official digital sign in instances

where the page (e.g., a transfer page)

lists a customer’s non-deposit account

(e.g., investment account) as well as the

customer’s deposit account (e.g.,

checking account). Some IDIs and other

stakeholders also raised concerns that

customers may mistakenly believe that

the FDIC official digital sign implies

that FDIC insurance protects against

erroneous or fraudulent transfers or that

non-deposit products are FDIC-insured

when the FDIC official sign is required

on pages that also include non-deposit

products.

The FDIC appreciates the technical

challenges and potential for consumer

confusion and is proposing to remove

the requirement to display the FDIC

official digital sign on ‘‘pages where the

customer may transact with deposits.’’

The FDIC is proposing instead to require

IDIs to display the FDIC official digital

sign on the IDI’s digital deposit-taking

channels’ page or screen where the

consumer initiates a deposit account

opening. The FDIC believes that

displaying the FDIC official digital sign

at the deposit account opening stage

would provide a consumer with

information regarding the insurability of

funds held in the account so that the

consumer may make an informed

decision when opening a deposit

account.

2. Static Non-Deposit Signage

Requirements for Digital Deposit-Taking

Channels

The proposed rule would narrow the

required digital deposit-taking channel

pages and screens on which IDIs must

display non-deposit signage

de a consumer with

information regarding the insurability of

funds held in the account so that the

consumer may make an informed

decision when opening a deposit

account.

2. Static Non-Deposit Signage

Requirements for Digital Deposit-Taking

Channels

The proposed rule would narrow the

required digital deposit-taking channel

pages and screens on which IDIs must

display non-deposit signage. Section

328.5(g)(1) requires IDIs to clearly,

continuously, and conspicuously

display non-deposit signage ‘‘on each

page relating to non-deposit products’’

that indicates that non-deposit products:

are not insured by the FDIC; are not

deposits; and may lose value.

Some IDIs and other industry

stakeholders raised questions and

concerns with respect to this

requirement. For example, some IDIs

requested clarification as to the meaning

of a page ‘‘relating’’ to non-deposit

products and whether this term

includes pages and screens with

incidental references to non-deposit

products, such as an IDI’s homepage, or

if references to non-deposit products in

navigation menus or tabs would trigger

the requirement. The FDIC also

recognizes that display of the non-

deposit sign may confuse consumers as

to which products are FDIC-insured and

not insured, particularly when both the

FDIC official digital sign and non-

deposit sign are displayed on the same

page with references to both FDIC-

insured deposit products and non-

deposit products.

To address the questions and

concerns raised, the proposed rule

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both the

FDIC official digital sign and non-

deposit sign are displayed on the same

page with references to both FDIC-

insured deposit products and non-

deposit products.

To address the questions and

concerns raised, the proposed rule

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Federal Register / Vol. 90, No. 160 / Thursday, August 21, 2025 / Proposed Rules

19 See, e.g., 88 FR 37920 (June 9, 2023); FIL–9–

94 (Feb. 17, 1994).

20 See 12 CFR 328.4(b) and (e).

would more appropriately target display

of the non-deposit sign. In particular,

the proposed rule would require the

display of non-deposit signage only on

pages and screens that are primarily

dedicated to one or more non-deposit

products. The proposal would require

non-deposit signage on pages and

screens that offer or provide substantive

information on one or more non-deposit

products. For example, an IDI would be

required to display non-deposit signage

on the IDI’s website page providing

detailed information on annuities or

pages where a consumer could purchase

a non-deposit product. With this

proposed change, IDIs would not be

required to display non-deposit signage

on pages or screens with incidental

references to non-deposit products, such

as the homepage or on the navigation

menu that references non-deposit

product pages.

3. Clear, Continuous, and Conspicuous

Display

The proposed rule would continue to

require IDIs to clearly, continuously,

and conspicuously display the FDIC

official digital sign and non-deposit

signage on relevant pages. Following

adoption of the 2023 Final Rule, many

IDIs and other stakeholders requested

clarification on where signage could be

placed to meet the clear, continuous,

and conspicuous standard

, and Conspicuous

Display

The proposed rule would continue to

require IDIs to clearly, continuously,

and conspicuously display the FDIC

official digital sign and non-deposit

signage on relevant pages. Following

adoption of the 2023 Final Rule, many

IDIs and other stakeholders requested

clarification on where signage could be

placed to meet the clear, continuous,

and conspicuous standard. The

proposed rule would provide IDIs with

flexibility in meeting this standard

given the unique designs of IDIs’

websites and applications, as well as

space constraints for smaller screens.

The FDIC also recognizes additional

clarification regarding this standard

could be helpful for IDIs in

implementing 12 CFR part 328’s

requirements. Accordingly, the

proposed rule would provide a non-

exhaustive list of examples on various

placements of the FDIC official digital

sign and non-deposit signage that would

meet the clear, continuous, and

conspicuous standard for IDIs’ digital

deposit-taking channels.

4. One-Time Notification for Bank

Customers Related to Third-Party Non-

Deposit Products

The FDIC is proposing to amend the

requirement that an IDI provide a one-

time notification to customers accessing

third-party non-deposit products

through an IDI’s digital deposit-taking

channel. Section 328.5(g)(2) requires

IDIs to display a one-time notification

when a bank customer logged into an

IDI’s digital deposit-taking channel

attempts to access non-deposit products

through a hyperlink (or similar web-

linking feature) to a non-bank third-

party platform. The FDIC’s rules require

the one-time notification to clearly and

conspicuously indicate that the non-

deposit products: are not insured by the

FDIC; are not deposits; and may lose

value. The FDIC’s rules further require

that a bank customer must dismiss the

one-time notification before initially

accessing the third-party’s platform

linking feature) to a non-bank third-

party platform. The FDIC’s rules require

the one-time notification to clearly and

conspicuously indicate that the non-

deposit products: are not insured by the

FDIC; are not deposits; and may lose

value. The FDIC’s rules further require

that a bank customer must dismiss the

one-time notification before initially

accessing the third-party’s platform.

The FDIC received feedback from IDIs

and other industry participants

concerning the one-time notification

requirement. IDIs cited operational

challenges in implementing the one-

time notification requirement, as well as

concerns that the notification would be

disruptive and would degrade the user

experience for IDI customers.

The FDIC proposes to retain the

requirement of a one-time notification

when moving from an IDI to a non-bank

and from an FDIC-insured deposit area

to a non-deposit area. However, the

proposal would provide IDIs additional

flexibility with respect to the one-time

notification requirement. Under the

proposed rule, IDIs would be required to

provide a notification that must be

either dismissed by an act of the

customer or dismissed automatically

after the customer has been provided a

reasonable opportunity to read the

notification’s content. For purposes of

this requirement, a reasonable

opportunity would constitute a period

of time no less than three seconds.

Consistent with historical

interpretations,19 the FDIC would view

affiliated entities as ‘‘third parties’’ for

purposes of the one-time notification

requirement. As such, IDIs would be

required to display the one-time

notification when customers access

affiliated third-party non-deposit

products through an IDI’s digital

deposit-taking channel. The proposal

would also make non-substantive

organizational changes to the regulatory

text of the one-time notification

requirement.

C. Signage Requirements for ATMs and

Like Devices

ation

requirement. As such, IDIs would be

required to display the one-time

notification when customers access

affiliated third-party non-deposit

products through an IDI’s digital

deposit-taking channel. The proposal

would also make non-substantive

organizational changes to the regulatory

text of the one-time notification

requirement.

C. Signage Requirements for ATMs and

Like Devices

1. FDIC Official Digital Sign

Requirements for ATMs and Like

Devices

The FDIC is proposing to amend 12

CFR 328.4(c) to provide IDIs with

additional flexibility in displaying the

FDIC official digital sign on ATMs and

like devices. Under 12 CFR 328.4(c), for

ATMs that receive deposits and offer

access to non-deposit products, IDIs are

required to display the FDIC official

digital sign clearly, continuously, and

conspicuously on an ATM or like

device’s ‘‘home page or screen and on

each transaction page or screen relating

to deposits.’’

A number of IDIs and other

stakeholders contacted the FDIC with

questions regarding the implementation

of this requirement, particularly in

relation to the requirement to display

the digital sign on ‘‘each transaction

page or screen relating to deposits.’’ IDIs

also expressed concern that consumers

could be confused if the FDIC official

digital sign were displayed on pages

that contained information about both

insured and uninsured accounts or

products. IDIs further highlighted that,

as with the transaction page

requirement for digital deposit-taking

channels, displaying the FDIC official

digital sign on transfer pages may be

challenging or unfeasible if the IDI

operating the ATM cannot determine

the insured status of funds sent to

recipient institution accounts.

The proposal aims to simplify

compliance for IDIs and mitigate

potential consumer confusion by

requiring the display of the FDIC official

digital sign only on the initial screen of

an IDI’s ATM or like device

digital sign on transfer pages may be

challenging or unfeasible if the IDI

operating the ATM cannot determine

the insured status of funds sent to

recipient institution accounts.

The proposal aims to simplify

compliance for IDIs and mitigate

potential consumer confusion by

requiring the display of the FDIC official

digital sign only on the initial screen of

an IDI’s ATM or like device. For

purposes of this proposed requirement,

an ATM’s ‘‘initial screen’’ is the screen

that is displayed before an IDI’s

customer inserts a debit card or other

credentials to access the device

(sometimes referred to as a ‘‘welcome

screen’’). This simplified requirement

would continue to help ensure that

consumers are informed when

consumers are doing business with an

IDI, while providing greater certainty for

IDIs as to which ATM pages or screens

would require display of the FDIC

official digital sign.

2. Limited Exception for Certain ATMs

and Like Devices To Display Physical

FDIC Official Sign

The FDIC is proposing to expand an

alternative to the FDIC official digital

sign requirement for certain ATMs and

like devices. Section 328.4 provides a

limited exception to the FDIC official

digital sign requirement for ATMs and

like devices that do not offer non-

deposit products and were placed into

service prior to January 1, 2025,

permitting such devices to display

either the FDIC official digital sign or

the physical FDIC official sign.20

Since issuing the 2023 Final Rule, the

FDIC has received a range of questions

from IDIs concerning the availability of

the physical FDIC official sign exception

for existing ATMs and like devices. The

FDIC understands that there are costs

associated with updating ATMs and like

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DIC has received a range of questions

from IDIs concerning the availability of

the physical FDIC official sign exception

for existing ATMs and like devices. The

FDIC understands that there are costs

associated with updating ATMs and like

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devices that have already been placed

into service to comply with new signage

requirements. The FDIC also believes

that the physical FDIC official sign

provides sufficient assurance and clarity

to consumers regarding the insured

status of deposits at (1) existing ATMs

and like devices and (2) ATMs and like

devices that do not offer non-deposit

products. To that end, the FDIC is

proposing to expand the physical sign

exception to a wider range of ATMs and

like devices, giving IDIs greater

flexibility to display either the physical

FDIC official sign or the FDIC official

digital sign on those devices.

Specifically, under the proposal, this

physical signage exception would be

available to (1) all ATMs and like

devices placed into service prior to

January 1, 2027, and (2) all ATMs and

like devices, regardless of when placed

into service, that do not allow customers

to transact with non-deposit products.

3. Degraded or Defaced Physical FDIC

Official Signs

Section 328.4(f) provides that a

degraded or defaced physical FDIC

official sign on ATMs and like devices

would not be considered to be displayed

in a clear and conspicuous manner, as

its display would be of little or no

benefit to consumers. The FDIC

proposes removing this provision. The

FDIC believes this provision is not

needed because an institution is

required to clearly and conspicuously

display the sign, and if the sign is not

clear to consumers, the institution

would not be displaying it clearly.

sidered to be displayed

in a clear and conspicuous manner, as

its display would be of little or no

benefit to consumers. The FDIC

proposes removing this provision. The

FDIC believes this provision is not

needed because an institution is

required to clearly and conspicuously

display the sign, and if the sign is not

clear to consumers, the institution

would not be displaying it clearly.

4. Non-Deposit Signage

Section 328.4(d) requires ATMs that

receive deposits for an IDI and offer

access to non-deposit products to

clearly, continuously, and

conspicuously display non-deposit

signage ‘‘on each transaction page or

screen relating to non-deposit

products.’’ Such non-deposit signage

must indicate that non-deposit products

are not insured by the FDIC; are not

deposits; and may lose value. The FDIC

has received feedback that the 2023

Final Rule’s non-deposit signage

requirements for ATMs and like devices

are overly broad and repetitive, as IDIs

are required to display the non-deposit

sign on each page within a single non-

deposit transaction. In recognition of

this and other considerations, the

proposed rule would modify the non-

deposit signage requirements for ATMs

and like devices in two respects.

First, under the proposal, a narrower

subset of ATMs and like devices would

be subject to the non-deposit signage

requirements. While the 2023 Final

Rule’s non-deposit signage requirements

apply to an ATM or like device if it

receives deposits for an IDI and offers

access to non-deposit products, the

proposal would apply to ATMs or like

devices that receive deposits for an IDI

and permit IDI customers to transact

with one or more non-deposit products.

This change would remove ATMs and

like devices from the scope of the non-

deposit signage requirements if, for

example, they merely permit customers

to view account balances for non-

deposit products. Moreover, an IDI

would only be required to display non-

deposit signage for the IDI’s own

customers

s for an IDI

and permit IDI customers to transact

with one or more non-deposit products.

This change would remove ATMs and

like devices from the scope of the non-

deposit signage requirements if, for

example, they merely permit customers

to view account balances for non-

deposit products. Moreover, an IDI

would only be required to display non-

deposit signage for the IDI’s own

customers. The FDIC acknowledges the

technical limitations IDIs face in

verifying information for customers of

other financial institutions using the

IDI’s ATMs and like devices (referred to

as ‘‘non-customers’’), including whether

the non-customer is accessing FDIC-

insured deposit accounts or non-deposit

products. The proposed rule would not

require IDIs to display non-deposit

signage for pages and screens viewed by

non-customers.

Second, the proposed rule would

require the display of non-deposit

signage on fewer pages and screens,

reflecting a more focused approach.

Although the 2023 Final Rule required

non-deposit signage to be displayed on

each transaction page or screen relating

to non-deposit products, the proposal

would require non-deposit signage to

appear only on the initial transaction

page or screen for a non-deposit

product. This change would simplify

IDIs’ compliance with the non-deposit

signage requirement while ensuring that

signage continues to be displayed where

it is most relevant to consumers: the

first screen displayed upon beginning a

transaction with a non-deposit product.

These changes would focus the non-

deposit signage requirements on devices

and screens that provide the disclosures

to consumers at the most appropriate

place and time.

D. Compliance Date

The FDIC acknowledges that some

IDIs are currently displaying signage on

their digital deposit-taking channels and

ATMs and like devices consistent with

the 2023 Final Rule, while other IDIs are

not displaying signage as permitted

under the delayed compliance date

period

ces

and screens that provide the disclosures

to consumers at the most appropriate

place and time.

D. Compliance Date

The FDIC acknowledges that some

IDIs are currently displaying signage on

their digital deposit-taking channels and

ATMs and like devices consistent with

the 2023 Final Rule, while other IDIs are

not displaying signage as permitted

under the delayed compliance date

period. The FDIC recognizes that all IDIs

will need time to update systems and

processes to implement changes in

compliance with the proposed

amendments. Accordingly, the FDIC

proposes the compliance date of January

1, 2027. If the FDIC adopts a final rule

amending the existing regulation, the

FDIC would also review any associated

Q&As published on the FDIC website as

warranted based on the specific

revisions adopted.

E. Technical Amendment

The FDIC also proposes to make a

technical amendment to 12 CFR part

328. Section 328.5(c) currently provides

for a ‘‘digital symbol’’ that is defined as

the portion of the FDIC official digital

sign ‘‘consisting of ‘FDIC’ and the one

line of smaller type to the right of

‘FDIC’.’’ While this provision defining

the digital symbol is located in subpart

A of 12 CFR part 328, 12 CFR part 328

discusses the use of the digital symbol

only in subpart B, which addresses false

advertising, misrepresentation of

insured status, and misuse of the FDIC’s

name or logo. Given that the digital

symbol concept applies specifically to

the context of subpart B, the proposed

rule would implement a technical

amendment to transfer the text

providing for, and defining, the digital

symbol to 12 CFR 328.101 of subpart B.

This non-substantive change would

promote readability by ensuring that the

definition is physically located in the

relevant subpart of the regulation.

t the digital

symbol concept applies specifically to

the context of subpart B, the proposed

rule would implement a technical

amendment to transfer the text

providing for, and defining, the digital

symbol to 12 CFR 328.101 of subpart B.

This non-substantive change would

promote readability by ensuring that the

definition is physically located in the

relevant subpart of the regulation.

IV. Expected Effects

The proposed changes to 12 CFR part

328.4 and 328.5 are intended to clarify

the requirements for the display of the

FDIC official digital sign and non-

deposit signage, as well as clarify when

such signage is required for ATMs and

similar devices. These requirements

apply to all IDIs. To the extent that some

IDIs have not already implemented

changes to their digital operations to

comply with 12 CFR part 328.4 and

328.5, the proposed rule would reduce

the number of hours spent to update

their systems. The proposed rule would

also reduce the number of hours spent

by all IDIs to maintain ongoing

compliance with 12 CFR part 328.4 and

328.5. Given this decrease in burden,

the proposed changes are not expected

to result in any substantive direct costs

to impacted IDIs. Instead, they are

expected to generate cost savings in the

form of reduced administrative effort

and resource allocation. In addition, the

proposed rule would benefit IDIs’

customers, who would have a more

streamlined and clutter-free browsing

experience.

A. Cost Savings: Implementation

If adopted, the proposed rule could

benefit IDIs by reducing implementation

costs such as labor costs to make

changes to an IDI’s IT systems,

contracting costs to make changes to in-

house or third-party IT systems, costs to

upgrade hardware for ATMs and similar

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ule could

benefit IDIs by reducing implementation

costs such as labor costs to make

changes to an IDI’s IT systems,

contracting costs to make changes to in-

house or third-party IT systems, costs to

upgrade hardware for ATMs and similar

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Federal Register / Vol. 90, No. 160 / Thursday, August 21, 2025 / Proposed Rules

21 The 19 hours represent a 32 percent time

savings from the 60 hours of implementation

burden estimated in the 2023 Final Rule.

22 To estimate the average hourly labor cost, the

FDIC assumes that 17.5, 17.5, and 65 percent of the

labor used to comply with the 2023 Final Rule

would be by Managers/Executives (at $159.03 per

hour), Compliance Officers (at $80.68 per hour),

and IT professionals (at $116.37 per hour),

respectively. The FDIC uses the 75th percentile

hourly wages reported by the Bureau of Labor

Statistics (BLS) National Industry-Specific

Occupational Employment and Wage Estimates

(OEWS) for the relevant occupations in the

Depository Credit Intermediation sector as of May

2024. These wages were increased by 53 and 5

percent to account for non-wage compensation and

wage inflation between May 2024 and March 2025.

23 19 hours × $118 per hour × 4,471 institutions

= $10,023,982.

24 See 90 FR 11659, published on March 11, 2025.

25 Call Reports for the quarter ending March 31,

2025.

26 The estimated time savings of 3 hours and 10

minutes for smaller IDIs and 6 hours and 20

minutes for larger IDIs are approximately 32 percent

of the corresponding burdens estimated in the 2023

Final Rule and are proportionally in line with the

estimated time savings for the implementation cost.

devices, and labor costs to make

changes to internal compliance policies

and procedures

025.

26 The estimated time savings of 3 hours and 10

minutes for smaller IDIs and 6 hours and 20

minutes for larger IDIs are approximately 32 percent

of the corresponding burdens estimated in the 2023

Final Rule and are proportionally in line with the

estimated time savings for the implementation cost.

devices, and labor costs to make

changes to internal compliance policies

and procedures. The cost savings that

would result from the proposed rule

vary by IDI depending on the size and

complexity of their digital deposit-

taking channels, the number of ATMs

and like devices, and the degree to

which IDIs rely on third-party service

providers to provide these channels,

ATMs or like devices. The FDIC does

not have the information necessary to

quantify all cost savings associated with

the proposed rule. However, the FDIC

believes that these benefits will be

material for certain IDIs because

stakeholders have, as previously

discussed, identified related challenges

with adopting certain provisions of 12

CFR part 328.

Although the FDIC cannot quantify all

cost savings associated with the

proposed rule, it has quantified certain

estimated cost savings for IDIs

associated with the changes to

recordkeeping, reporting, and disclosure

requirements for digital signage and

non-deposit signage obligations. The

FDIC recognizes that the cost estimates

in the 2023 final rule may have

understated the actual costs, and thus

the estimated cost savings in this

proposal may likewise understate the

actual cost savings, but the FDIC is

using the best estimates it has available.

As of this date, 4,471 IDIs are subject

to 12 CFR part 328. As previously

discussed, the proposed rule would

pose two principal effects for affected

IDIs. First, the proposal would reduce

the number of digital screens or pages

on which the FDIC official digital sign

must appear. Second, the proposal

would narrow certain non-deposit

signage requirements

he best estimates it has available.

As of this date, 4,471 IDIs are subject

to 12 CFR part 328. As previously

discussed, the proposed rule would

pose two principal effects for affected

IDIs. First, the proposal would reduce

the number of digital screens or pages

on which the FDIC official digital sign

must appear. Second, the proposal

would narrow certain non-deposit

signage requirements. Based on these

changes, the FDIC estimates an average

reduction of 19 hours per IDI for

implementation-related recordkeeping,

reporting and disclosure activities

only.21 At an estimated average hourly

labor cost of $118,22 the proposed rule

would result in cost savings of $2,242

per IDI, on average, in the

implementation year prior to the

compliance deadline for the proposed

rule. Across 4,471 IDIs, the estimated

effect is approximately $10 million in

implementation cost savings.23

Although the 2023 Final Rule is

already effective, compliance with 12

CFR 328.4 and 328.5 has been

postponed until March 1, 2026.24

However, some IDIs may have already

taken steps to implement the 2023 Final

Rule in anticipation of its original

compliance deadline of January 1, 2025,

or its revised compliance deadline of

March 1, 2026. As a result, these IDIs

may not realize full cost savings from

the proposed changes. In some cases,

they may even incur voluntary costs to

reverse or modify signage or systems

that are no longer required under the

proposal. It is also possible that such

IDIs will choose to maintain compliance

with the broader requirements in the

2023 Final Rule and therefore avoid any

reversal costs. For purposes of this

analysis, the FDIC assumes that all IDIs

would experience cost savings

generated by the proposed rule and

estimate the average cost savings for an

IDI that has not yet taken steps to

comply with current requirements

under 12 CFR part 328.4 and 328.5

ose to maintain compliance

with the broader requirements in the

2023 Final Rule and therefore avoid any

reversal costs. For purposes of this

analysis, the FDIC assumes that all IDIs

would experience cost savings

generated by the proposed rule and

estimate the average cost savings for an

IDI that has not yet taken steps to

comply with current requirements

under 12 CFR part 328.4 and 328.5.

While the quantified implementation

cost savings may be relatively small, the

unquantified implementation cost

savings are likely to be material for

some IDIs.

B. Cost Savings: Ongoing Compliance

In addition to reducing

implementation burden in the period

leading to the proposed amended

compliance date, the proposed rule

would generate ongoing compliance

cost savings in subsequent years. IDIs

typically incur recurring compliance

costs to maintain, review, and update

their signage and related systems in

accordance with regulatory

requirements. Further, ongoing

compliance with FDIC signage

requirements can be a factor in costs for

third-party service agreements,

hardware replacement, as well as

validation and testing of service

delivery channels. The FDIC does not

have the information necessary to

quantify all ongoing cost savings

associated with the proposed rule.

However, the proposed rule would

reduce the scope of these ongoing

activities and thereby generate

associated cost savings for IDIs. As

noted above, these savings will vary

across IDIs, based on the size and

complexity of their operations.

For purposes of this analysis, the

FDIC has quantified ongoing cost

savings for IDIs associated with the

changes to recordkeeping, reporting,

and disclosure requirements for digital

signage and non-deposit signage

obligations only. The FDIC categorizes

IDIs by asset size as a proxy for the

complexity of digital operations,

consistent with the methodology used

in the 2023 Final Rule: IDIs with less

than $10 billion in assets and those with

$10 billion or more

ngs for IDIs associated with the

changes to recordkeeping, reporting,

and disclosure requirements for digital

signage and non-deposit signage

obligations only. The FDIC categorizes

IDIs by asset size as a proxy for the

complexity of digital operations,

consistent with the methodology used

in the 2023 Final Rule: IDIs with less

than $10 billion in assets and those with

$10 billion or more. According to the

latest Call Report data, there are 4,311

IDIs in the smaller IDI group and 160 in

the larger.25 The FDIC estimates that the

proposed rule would reduce ongoing

recordkeeping, reporting, and disclosure

compliance labor hours for smaller IDIs

by an average time savings of 3 hours

and 10 minutes. For larger IDIs, the

estimated time savings is 6 hours and 20

minutes annually.26

Using the same estimated average

hourly labor cost of $118 as above, the

estimated ongoing annual cost savings

are approximately $374 per small IDI

and $747 per large IDI, on average, for

a total annual cost savings of

approximately $1.6 million for smaller

IDIs and approximately $120 thousand

for larger IDIs. This yields a total

estimated ongoing annual cost savings

associated with changes to

recordkeeping, reporting, and disclosure

requirements of approximately $1.7

million across all FDIC-insured

depository institutions.

C. Intangible Benefits and Costs

The proposed changes may also result

in indirect or intangible effects that are

more difficult to quantify.

In addition, the proposed rule would

benefit consumers by improving their

experience with IDIs’ digital channels.

For example, the proposed changes

would allow IDIs to tailor digital signage

placement to better meet the needs of

the customer, resulting in more targeted

and less duplicative disclosures. The

elimination of the notification dismissal

requirement would reduce interruptions

to the browsing experience

rule would

benefit consumers by improving their

experience with IDIs’ digital channels.

For example, the proposed changes

would allow IDIs to tailor digital signage

placement to better meet the needs of

the customer, resulting in more targeted

and less duplicative disclosures. The

elimination of the notification dismissal

requirement would reduce interruptions

to the browsing experience. The

removal of the requirement to display

the FDIC official digital sign on ‘‘pages

where the customer may transact with

deposits’’ would eliminate consumer

confusion about which products are

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27 5 U.S.C. 601 et seq.

28 The SBA defines a small banking organization

as having $850 million or less in assets, where an

organization’s ‘‘assets are determined by averaging

the assets reported on its four quarterly financial

statements for the preceding year.’’ See 13 CFR

121.201 (as amended by 87 FR 69118, effective

December 19, 2022). In its determination, the ‘‘SBA

counts the receipts, employees, or other measure of

size of the concern whose size is at issue and all

of its domestic and foreign affiliates.’’ See 13 CFR

121.103. Following these regulations, the FDIC uses

an insured depository institution’s affiliated and

acquired assets, averaged over the preceding four

quarters, to determine whether the insured

depository institution is ‘‘small’’ for the purposes of

RFA.

29 FDIC Call Reports, March 31, 2025.

30 Id.

31 All 3,130 small entity IDIs have less than $10

billion in assets

liates.’’ See 13 CFR

121.103. Following these regulations, the FDIC uses

an insured depository institution’s affiliated and

acquired assets, averaged over the preceding four

quarters, to determine whether the insured

depository institution is ‘‘small’’ for the purposes of

RFA.

29 FDIC Call Reports, March 31, 2025.

30 Id.

31 All 3,130 small entity IDIs have less than $10

billion in assets.

32 To estimate the average cost of compensation

per hour, the FDIC assumes that approximately

17.5, 17.5, and 65 percent of the labor used to

comply with the 2023 Final Rule would be by

Managers/Executives (at $159.03 per hour),

Compliance Officers (at $80.68 per hour), and IT

professionals (at $116.37 per hour), respectively.

The FDIC uses the 75th percentile hourly wages

reported by the Bureau of Labor Statistics (BLS)

National Industry-Specific Occupational

Employment and Wage Estimates (OEWS) for the

relevant occupations in the Depository Credit

Intermediation sector as of May 2024. These wages

were increased by approximately 53 and 5 percent

to account for non-wage compensation and wage

inflation between May 2024 and March 2025.

33 $374 per year = 3:10 hours × $118 per hour.

FDIC-insured when a page shows both

deposit and non-deposit products.

Overall, these proposed changes would

lead to a more streamlined and less

cluttered customer experience. The

FDIC does not have the data available to

quantify these effects but believes the

proposed rule would provide

substantial benefits to consumers of

IDI’s digital channels.

At the same time, the proposed

changes may introduce some intangible

costs. For example, reducing signage

requirements could result in less visible

or less consistent disclosure of deposit

insurance coverage. IDIs that have

already implemented changes to their

digital operations to comply with 12

CFR part 328 may incur some costs to

modify their systems in response to the

proposed rule

At the same time, the proposed

changes may introduce some intangible

costs. For example, reducing signage

requirements could result in less visible

or less consistent disclosure of deposit

insurance coverage. IDIs that have

already implemented changes to their

digital operations to comply with 12

CFR part 328 may incur some costs to

modify their systems in response to the

proposed rule. More flexibility in how

different institutions implement the

requirements could potentially lead to

greater variability in customer

experience across the industry. The

FDIC believes these effects will be

minimal; under the proposed rule, 12

CFR part 328 would still require IDIs

digital operations to provide clarity to

consumers about the extent to which or

the manner in which products are

insured by the FDIC.

Finally, the timing of compliance may

also influence intangible effects. Given

the proposed extension of the

compliance date until January 1, 2027,

some institutions would benefit from

increased flexibility in integrating the

new requirements into ongoing system

updates or signage cycles. However, a

longer transition period may also lead to

temporary inconsistencies in signage

across institutions, which could affect

customer experience to a limited extent.

The FDIC invites comments on all

aspects of the supporting information

provided in this Expected Effects

section. The FDIC is particularly

interested in comments on any

significant benefits or costs that the

agency has not identified.

V. Alternatives Considered

The FDIC has considered several

alternatives to the proposed rule that

could meet the objectives of this

rulemaking, including proposals

suggested by commenters in response to

the 2023 Final Rule. For the reasons

described, the FDIC views the proposed

rule as the most appropriate and

effective means of achieving its policy

objectives with respect to 12 CFR part

328.

The FDIC considered not

promulgating any regulatory action to

amend 12 CFR part 328

e that

could meet the objectives of this

rulemaking, including proposals

suggested by commenters in response to

the 2023 Final Rule. For the reasons

described, the FDIC views the proposed

rule as the most appropriate and

effective means of achieving its policy

objectives with respect to 12 CFR part

328.

The FDIC considered not

promulgating any regulatory action to

amend 12 CFR part 328. However, as

previously discussed, the FDIC has

identified challenges with, and potential

improvements for, the FDIC’s sign and

advertisement regulations under subpart

A of 12 CFR part 328. As discussed in

section IV, Expected Effects, of this

document, the proposed rule has clear,

quantifiable cost savings, among other

benefits, over this no-action alternative

with minimal costs to IDIs and their

customers.

The FDIC also considered eliminating

the regulations in 12 CFR 328.4 and

328.5 to remove digital signage

requirements entirely. However, as

described in the 2023 Final Rule, the

FDIC believes there are benefits to

updates to 12 CFR part 328 to address

potential uncertainties that could dilute

or undermine the confidence that

underpins banks and our nation’s

broader financial system. The proposed

rule would advance the 2023 Final

Rule’s objective to ensure that

consumers, businesses, and other

entities better understand when their

funds are protected by FDIC deposit

insurance, while increasing the

flexibility for IDIs in the marketing of

their products and services.

The FDIC invites comments on

alternatives to the proposed rule.

VI. Regulatory Analysis

al system. The proposed

rule would advance the 2023 Final

Rule’s objective to ensure that

consumers, businesses, and other

entities better understand when their

funds are protected by FDIC deposit

insurance, while increasing the

flexibility for IDIs in the marketing of

their products and services.

The FDIC invites comments on

alternatives to the proposed rule.

VI. Regulatory Analysis

A. Regulatory Flexibility Act

The Regulatory Flexibility Act (RFA)

generally requires an agency, in

connection with a proposed rule, to

prepare and make available for public

comment an initial regulatory flexibility

analysis that describes the impact of the

proposed rule on small entities.27

However, an initial regulatory flexibility

analysis is not required if the agency

certifies that the proposed rule will not,

if promulgated, have a significant

economic impact on a substantial

number of small entities. The Small

Business Administration (SBA) has

defined ‘‘small entities’’ to include

banking organizations with total assets

of less than or equal to $850 million.28

Generally, the FDIC considers a

significant economic impact to be a

quantified effect in excess of 5 percent

of total annual salaries and benefits or

2.5 percent of total noninterest

expenses. The FDIC believes that effects

in excess of one or more of these

thresholds typically represent

significant economic impacts for FDIC-

supervised institutions. For the reasons

described below, the FDIC certifies that

the proposed rule will not have a

significant economic impact on a

substantial number of small entities.

As described in section IV, Expected

Effects, of this document, the proposed

rule would affect all institutions whose

deposits are insured by the FDIC

lly represent

significant economic impacts for FDIC-

supervised institutions. For the reasons

described below, the FDIC certifies that

the proposed rule will not have a

significant economic impact on a

substantial number of small entities.

As described in section IV, Expected

Effects, of this document, the proposed

rule would affect all institutions whose

deposits are insured by the FDIC.

According to recent Call Reports, there

are 4,471 such IDIs.29 Of these,

approximately 3,130 would be

considered small entities for the

purposes of the RFA (small entity

IDIs).30

As a result of the proposed rule, IDIs

with less than $10 billion in assets 31

would spend an estimated 19 fewer

hours, on average, to update their digital

operations in the first year in order to

comply with the recordkeeping,

reporting, and disclosure provision of

the 2023 Final Rule. At average labor

costs of $118 per hour,32 the estimated

first-year cost savings would be

approximately $2,242 per IDI, or

approximately $7 million for all small

entity IDIs—less than a tenth of a

percent of annual salaries and benefits

for these 3,130 entities in aggregate. At

the individual IDI level, the estimated

first-year cost savings would not exceed

even one percent of the total annual

salaries and benefits for any small entity

IDI. For subsequent years, the estimated

costs savings are even smaller: an IDI

with less than $10 billion in assets is

expected to spend 3 hours and 10

minutes less (equivalent to $374) per

year,33 on average, to comply with the

recordkeeping, reporting, and disclosure

provisions within part 328 as a result of

the proposed rule. Thus, the proposed

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expected to spend 3 hours and 10

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provisions within part 328 as a result of

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Federal Register / Vol. 90, No. 160 / Thursday, August 21, 2025 / Proposed Rules

34 44 U.S.C. 3501 et seq.

35 44 U.S.C. 3507(d).

36 5 CFR 1320.

rule is unlikely to significantly impact

any small entity IDI.

The proposed rule would also provide

benefits other than the cost savings

described above, including greater

flexibility in signage design and

placement, improved customer

experience, and reduced staff time

allocated to maintaining signage

compliance across multiple channels

and devices. As noted in section IV,

Expected Effects, of this document, the

FDIC is unable to quantify these effects.

However, the FDIC believes these

effects, while potentially substantive for

certain IDIs, are likely to be minimal in

the aggregate.

Given the expected effects of the

proposed rule described above, the FDIC

certifies that the proposed rule would

not have a significant economic impact

on a substantial number of small

entities.

The FDIC invites comments on all

aspects of the supporting information

provided in this RFA section. The FDIC

is particularly interested in comments

on any significant effects on small

entities that the agency has not

identified.

B. Paperwork Reduction Act

Certain provisions of the proposed

rule contain ‘‘collections of

information’’ within the meaning of the

Paperwork Reduction Act (PRA) of

1995.34 In accordance with the

requirements of the PRA, the FDIC may

not conduct or sponsor, and the

respondent is not required to respond

to, an information collection unless it

displays a currently valid Office of

Management and Budget (OMB) control

number

provisions of the proposed

rule contain ‘‘collections of

information’’ within the meaning of the

Paperwork Reduction Act (PRA) of

1995.34 In accordance with the

requirements of the PRA, the FDIC may

not conduct or sponsor, and the

respondent is not required to respond

to, an information collection unless it

displays a currently valid Office of

Management and Budget (OMB) control

number. The information collections

contained in the proposed rule have

been submitted to OMB for review and

approval by the FDIC under section

3507(d) of the PRA 35 and 5 CFR 1320.11

of OMB’s implementing regulations.36

The FDIC is proposing to extend for

three years, with revision, these

information collections.

Title of information Collection: FDIC’s

Official Sign and Advertising

Requirements, False Advertising,

Misrepresentation of Insured Status, and

Misuse of the FDIC’s Name or Logo.

OMB Number: 3064–0219.

Frequency of Response: Periodic—see

table below.

Affected Public: Businesses or other

for-profit.

Respondents: Any FDIC-insured

depository institution and persons that

provide deposit-related services to

insured depository institutions or offer

insured depository institution’s deposit-