Request for extension of comment period deadline on the FDIC's proposal to modernize the rules governing use of the official FDIC sign

James P. Sheesley
Assistant Executive Secretary
Federal Deposit Insurance Corporation
550 17th Street NW
Washington, DC 20429

Ladies and Gentlemen:
The Bank Policy Institute, the American Bankers Association, and the Independent Community Bankers of America respectfully request that the Federal Deposit Insurance Corporation extend by at least 45 days the deadline for comments on the FDIC's proposed amendments to part 328 of its regulations, which include requirements for use of the official FDIC sign and IDIs' advertising statements, as well as misrepresentations of insured status and misuse of the FDIC's name or logo.

We support the FDIC's effort to update its existing regulations to reflect innovation in the financial services marketplace, including the increased use of internet and mobile banking channels to access IDI banking and other services. The banking industry is strongly committed to consumer protection, promoting public confidence in insured deposits, and preventing false and misleading representations about the manner and extent of FDIC deposit insurance.

The proposal addresses multiple aspects of the financial institutions' businesses, including the provision, marketing and advertising of insured deposits and non-depository products through both physical and digital channels offered directly or indirectly by the banking organization. In order to comprehensively evaluate the proposal, banking organizations will have to consider, at a minimum, third party relationships, including third party risk management obligations; marketing and advertising practices and proposed changes to those practices; technological feasibility; the development of policies and procedures; and staff training, particularly in connection with the proposed monitoring requirements.

The proposal was published in the Federal Register on December 21, 2022, and comments are currently due on February 21, 2023. In light of the significance of the topic and the various aspects of the proposal that must be considered by different experts within multiple divisions of banking organizations, as well as comment period's commencement immediately prior to both year-end and the winter religious holidays when many individuals traditionally take personal time off, we are concerned that the existing comment deadline will not provide us with sufficient time to perform the level of analysis that this proposal warrants.

As noted, significant coordination is necessary within financial institutions to compile adequate details to comprehensively respond to the proposal. Thus, we respectfully request that the FDIC extend the comment deadline for at least an additional 45 days. Our goal is to develop a carefully considered and well-informed comment letter that will be constructive to the FDIC as it considers amendments to its signage and advertising regulations, and we believe this additional time is necessary for us to achieve that goal.

Respectfully submitted,
Bank Policy Institute
American Bankers Association
Independent Community Bankers of America