Keeping Deposits Local Act

This bill changes federal banking law on how much of a bank's reciprocal deposits are not treated as brokered deposits. Reciprocal deposits are deposits that banks exchange with each other through a network so customers can keep larger amounts insured. The bill sets a tiered limit based on the bank's total liabilities: 50 percent of the first $1 billion, 40 percent of liabilities from $1 billion to $10 billion, 30 percent from $10 billion to $250 billion, 20 percent from $250 billion to $1 trillion, and 2 percent above $1 trillion. It also lets banks with a CAMELS examination rating of 1, 2, or 3 qualify for this treatment, replacing the current requirement of an outstanding or good condition rating.

Full text and official record on Congress.gov

Sponsors

• Mike Rounds Republican sponsor
• 4 cosponsors