"…National CD Rateline is committed to making your online experience safe and secure…"

"…satisfying liquidity needs in the most cost-effective way possible and without unduly sacrificing income potential…"

Non-brokered Disclosure
Non Brokered Disclosure
FDIC Advisory Opinion
FDIC Advisory Opinion
Deposit Guidelines
Deposit Guidelines
Security & Privacy
Security & Privacy
Liquidity Risk Management
Liquidity Risk Management

Non-brokered Disclosure

National CD Rateline is aware of all the regulatory issues your institution faces as they relate to using our product. We have on staff consultants who can answer your BSA/CIP and compliance questions.

Please contact a Member Services representative today to obtain all the necessary information to successfully implement National CD Rateline as part of your banks Investing or Deposit strategy.

National CD Rateline meets all four criteria to be considered a listing service, not a deposit broker. Please contact National CD Rateline for related documentation.

FDIC Advisory Opinion

4000 - Advisory Opinions

Question regarding FDIC's criteria for determining when a "listing service" is a "deposit broker." FDIC--04--04 July 28, 2004 Christopher L. Hencke, Counsel

The FDIC's Criteria

The FDIC revised its criteria in 2002 through Advisory Opinion No. 02--04 (November 13, 2002). We made additional revisions in our letter to you dated April 21, 2004. In that letter, we recognized that, through advances in technology, an Internet-based "listing service" can transmit messages (including trade confirmations) between depositors and depository institutions so long as the Internet-based "listing service" is a passive mechanism for "posting" rates and transmitting messages. Consistent with our previous opinions, the letter noted that the fees charged by a "listing service" must be flat fees unrelated to the amount of deposits. The revised criteria in our April 21, 2004 letter are set forth in full below.

1. The person or entity providing the listing service is compensated solely by means of subscription fees (i.e., the fees paid by subscribers as payment for their opportunity to see the rates gathered by the listing service) and/or listing fees (i.e., the fees paid by depository institutions as payment for their opportunity to list or "post" their rates). The listing service does not require a depository institution to pay for other services offered by the listing service or its affiliates as a condition precedent to being listed. {{8-31-04 p.4984.92}}

2. The fees paid by depository institutions are flat fees: they are not calculated on the basis of the number of dollar amount of deposits accepted by the depository institution as a result of the listing or "posting" of the depository institution's rates.

3. In exchange for these fees, the listing service performs no services except (A) the gathering and transmission of information concerning the availability of deposits; and/or (B) the transmission of messages between depositors and depository institutions (including purchase orders and trade confirmations). In publishing or displaying information about depository institutions, the listing service must not attempt to steer funds toward particular institutions (except that the listing service may rank institutions according to interest rates and also may exclude institutions that do not pay the listing fee). Similarly, in any communications with depositors or potential depositors, the listing service must not attempt to steer funds toward particular institutions.

4. The listing service is not involved in placing deposits. Any funds to be invested in deposit accounts are remitted directly by the depositor to the insured depository institution and not, directly or indirectly, by or through the listing service.

National CD Rateline meets all four criteria to be considered a listing service, not a deposit broker. Please contact National CD Rateline for related documentation.

Deposit Guidelines

FDIC Regulatory Deposit Guidelines

The critical role deposits play in a bank's ongoing, successful operation clearly demonstrates the importance of implementing programs to retain and, in most instances, expand the deposit base and of monitoring the nature and volatility of the deposit structure. Increased competition for funds and the desire of most depositors to not only minimize idle, non-earning balances but also to receive market rates of interest on invested balances have given further impetus to deposit retention efforts. An effective deposit management program should, at a minimum, include the following information:

  • A clearly defined marketing strategy.
  • Projections for deposit growth and structure.
  • Associated cost and interest rate scenarios.
  • Procedures to compare results against projections.
  • Steps to revise the plan when needed.

A deposit management program should take into account the make-up of the market area economy, including local and national economic conditions; the potential for investing deposits at acceptable margins; management competence; the adequacy of bank operations; the location and size of facilities; the nature and degree of bank and non-bank competition; and, the effect of monetary and fiscal policies of the Federal government on the bank's service area and money and capital markets in general.

Once a deposit development and retention program has been devised, it must be monitored and adjusted as necessary. The long-range success of such a program is closely related to management's ability to detect the need for change as early as possible. Management must not only project deposit growth, but also determine the make-up of the accounts as to stable deposits, fluctuating or seasonal deposits, and volatile deposits. Management should remain knowledgeable of the characteristics of the deposit structure via periodic internal reports. Lack of such knowledge could lead to the unwise employment of funds and subsequent problems.


Codified Bank Secrecy Act (BSA) Regulations

*"(ii) Customer does not include: (A) A financial institution regulated by a Federal functional regulator or a bank regulated by a state bank regulator*"

Security & Privacy

Online Security
National CD Rateline is committed to making your online experience safe and secure, by providing up-to-date security technology that protects you, as well as your institution. Here are some of the measures we’ve taken to ensure your financial privacy. As a reminder National CD Rateline will NEVER ask for your USER ID, account number or Password via e-mail or by phone.

Information Encoding
We use encoding technology so your private information cannot be intercepted. Your banking information never travels the Internet without encryption protection.

Individual ID & Password
In order to access National CD Rateline Online service, you must enter a unique User ID and Password.

Password Security System
We monitor access of your account by the information provided each time you log in. This record will report your last login date and the number of times you have logged in.

Automatic Log–Off
If you’re logged on the Online Banking and do not perform any activity for 20-120 minutes, you will not be able to proceed until you “re–log” on to the system.


  • Behind hardware firewall
  • RAID5 for data integrity
  • Servers backed up to different geographical locations
  • Tape backup is scheduled nightly
  • Security Certificates issued by Equifax Secure Certificate Authority
  • 24 hour power protection – generator backup
  • Anti-Virus scanning for incoming and outgoing e-mail

Liquidity Risk Management

Risk Management Manual of Examination Policies

Manual Home | Manual Index

Section 6.1 - Liquidity and Funds Management

Last Updated 02/21/2005


Liquidity represents the ability to fund assets and meet obligations as they become due. Liquidity is essential in all banks to compensate for expected and unexpected balance sheet fluctuations and provide funds for growth. Liquidity risk is the risk of not being able to obtain funds at a reasonable price within a reasonable time period to meet obligations as they become due. Because liquidity is critical to the ongoing viability of any bank, liquidity management is among the most important activities that a bank conducts.

Funds management involves estimating and satisfying liquidity needs in the most cost-effective way possible and without unduly sacrificing income potential. Effective analysis and management of liquidity requires management to measure the liquidity position of the bank on an ongoing basis and to examine how funding requirements are likely to evolve under various scenarios, including adverse conditions.

The formality and sophistication of liquidity management depends on the size and sophistication of the bank, as well as the nature and complexity of its activities. Regardless of the bank, good management information systems, strong analysis of funding requirements under alternative scenarios, diversification of funding sources, and contingency planning are crucial elements of strong liquidity management.

The adequacy of a bank's liquidity will vary. In the same bank, at different times, similar liquidity positions may be adequate or inadequate depending on anticipated or unexpected funding needs. Likewise, a liquidity position adequate for one bank may be inadequate for another. Determining a bank's liquidity adequacy requires an analysis of the current liquidity position, present and anticipated asset quality, present and future earnings capacity, historical funding requirements, anticipated future funding needs, and options for reducing funding needs or obtaining additional funds.

To provide funds to satisfy liquidity needs, one or a combination of the following must occur:

  • Disposal of assets
  • Increase in short-term borrowings and/or issuance of additional short-term deposit and deposit-like liabilities.
  • Increase in long-term liabilities.
  • Increase in capital through earnings, capital injection, stock issuance, or issuance of other capital instruments.

Liquidity has a cost, which is a function of market conditions and the risk profile of the bank. If liquidity needs are met through holdings of high quality short-term assets, generally the cost is the income sacrificed by not holding longer term and/or lower quality assets. If funding needs are not met through liquid asset holdings, a bank may be required to incur additional liabilities, possibly under adverse market conditions at an undesirable cost.

** Regulatory/Statute and Regulations Codified Bank Secrecy Act § 103.120 31 CFR Ch. I (7–1–06 Edition)*

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