Clarification of Deposit Insurance Coverage for Branches of U.S. Banks in the Federated States of Micronesia, the Marshall Islands, and Palau

Document Headings Document headings vary by document type but may contain the following: the agency or agencies that issued and signed a document the number of the CFR title and the number of each part the document amends, proposes to amend, or is directly related to the agency docket number / agency internal file number the RIN which identifies each regulatory action listed in the Unified Agenda of Federal Regulatory and Deregulatory Actions See the Document Drafting Handbook for more details. Federal Deposit Insurance Corporation 12 CFR Part 330 RIN 3064-AG06 ( printed page 13703) AGENCY: Federal Deposit Insurance Corporation. ACTION: Final rule. SUMMARY: The Federal Deposit Insurance Corporation (FDIC) is adopting a final rule to provide that the FDIC will insure deposits of all branches of U.S.-insured depository institutions (IDIs) in the Federated States of Micronesia, the Republic of the Marshall Islands, and the Republic of Palau, whether operating presently or in the future. This final rule follows an interim final rule with request for comment issued by the FDIC in August 2024. DATES: The final rule is effective April 22, 2026. FOR FURTHER INFORMATION CONTACT: Legal Division: Ryan McCarthy, Counsel, 202-898-7301, rymccarthy@fdic.gov ; James Watts, Counsel, 202-898-6678, jwatts@fdic.gov ; Shilpa Shah, Acting Associate Director, International Affairs Branch, 202-898-8546, shshah@fdic.gov . SUPPLEMENTARY INFORMATION: I. Background In 1981, Congress amended the Federal Deposit Insurance Act (FDI Act) to permit the FDIC to provide deposit insurance coverage to branches of U.S.-chartered IDIs located in the Trust Territory of the Pacific Islands (Trust Territory). At that time, the Trust Territory included what is now the Federated States of Micronesia (FSM), the Republic of the Marshall Islands (Marshall Islands), the Republic of Palau (Palau), and the Northern Mariana Islands. Between 1986 and 1994, the FSM, the Marshall Islands, and Palau became independent n…