Keeping Deposits Local Act

Summary#

This bill changes part of the Federal Deposit Insurance Act about reciprocal deposits. It replaces the current rule with a tiered set of percentages that define how much of a bank's reciprocal deposits are NOT treated as funds obtained through a deposit broker. The new tiers are:

  • 50% of the bank's liabilities up to $1,000,000,000;
  • 40% of the portion over $1,000,000,000 up to $10,000,000,000;
  • 30% of the portion over $10,000,000,000 up to $250,000,000,000;
  • 20% of the portion over $250,000,000,000 up to $1,000,000,000,000;
  • 2% of the portion over $1,000,000,000,000. The bill also changes the definition of an "agent institution" so that a bank whose most recent CAMELS rating is 1, 2, or 3 qualifies under the specified clause.

What it means for you#

The bill changes how much reciprocal deposit money a bank can treat as not coming from a deposit broker. It also lets banks with a CAMELS rating of 1, 2, or 3 meet the agent institution standard in the named clause. No publicly available information on other direct effects is included in the bill text.

Expenses#

No publicly available information on costs, budgetary effects, or fiscal estimates is included in the bill text or provided metadata.

Proponents' View#

No publicly available information on supporters' explanations, statements, or expected outcomes is included in the bill text or provided metadata.

Opponents' View#

No publicly available information on opponents' explanations, statements, or expected concerns is included in the bill text or provided metadata.