Board of Governors of the Federal Reserve System

Data Dictionary

Item Number 5596

Call confidentiality applies to FFIEC 031/041.

Data Description:

Includes lifeline accounts that are transaction accounts that meet certain minimum requirements to be established by the Federal Reserve Board pursuant to section 232 of the FDIC Improvement Act Of 1991. These accounts will be eligible for a reduced deposit insurance assessment rate.

Until such time as the minimum requirements for lifeline accounts are established by the Federal Reserve Board, associations will report this line as zeros.

NOTE:

Section 7(a)(6) of the Federal Deposit Insurance Act was added to the FDI Act by the FDIC Improvement Act of 1991. It states that "In the reports of condition required to be reported by this subsection, the deposits in lifeline accounts shall be separately reported." The reason for separate reporting is because lifeline accounts, under another provision of the FDIC Improvement Act, have a lower assessment rate than other deposits. The difference between this lower rate and the regular assessment rate was supposed to be paid to the FDIC in appropriations of funds by Congress.

The agencies received OMB approval to add item 9 to Schedule RC-O effective March 1993 because we expected to have to start collecting the item for assessment calculation purposes. However, Congress has never appropriated any funds that could be used to reimburse the FDIC for the lower assessment rate on lifeline accounts. Since Congress has never done so, the Fed has never wanted to devote the resources to establish the minimum requirements for lifeline accounts. What this means is Schedule RC-O item 9, is for all practical purposes a placeholder and won't be collected until there is a need for the information.