[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3234 Engrossed in House (EH)]

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119th CONGRESS
  2d Session
                                H. R. 3234

_______________________________________________________________________

                                 AN ACT


 
  To amend the Federal Deposit Insurance Act to modify the amount of 
 reciprocal deposits of an insured depository institution that are not 
considered to be funds obtained by or through a deposit broker, and for 
                            other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Keeping Deposits Local Act''.

SEC. 2. AMOUNT OF RECIPROCAL DEPOSITS THAT ARE NOT CONSIDERED TO BE 
              FUNDS OBTAINED BY OR THROUGH A DEPOSIT BROKER.

    Section 29(i) of the Federal Deposit Insurance Act (12 U.S.C. 
1831f(i)) is amended by striking paragraph (1) and inserting the 
following:
            ``(1) In general.--The sum of the following amounts of 
        reciprocal deposits of an agent institution shall not be 
        considered to be funds obtained, directly or indirectly, by or 
        through a deposit broker:
                    ``(A) An amount equal to 50 percent of the portion 
                of the total liabilities of the agent institution that 
                is less than or equal to $1,000,000,000.
                    ``(B) An amount equal to 40 percent of the portion, 
                if any, of the total liabilities of the agent 
                institution that is greater than $1,000,000,000, but 
                less than or equal to $10,000,000,000.
                    ``(C) An amount equal to 30 percent of the portion, 
                if any, of the total liabilities of the agent 
                institution that is greater than $10,000,000,000, but 
                less than or equal to $250,000,000,000.''.

SEC. 3. DEFINITION OF AGENT INSTITUTION.

    Section 29(i)(2)(A)(i) of the Federal Deposit Insurance Act (12 
U.S.C. 1831f(i)(2)(A)(i)) is amended by striking subclause (I) and 
inserting the following:
                                    ``(I) when most recently examined 
                                under section 10(d) was assigned a 
                                CAMELS rating of 1, 2, or 3 under the 
                                Uniform Financial Institutions Rating 
                                System (or an equivalent rating under a 
                                comparable rating system); and''.

SEC. 4. RECIPROCAL DEPOSITS STUDY.

    (a) In General.--The Federal Deposit Insurance Corporation, in 
consultation with the Board of Governors of the Federal Reserve System, 
shall carry out a study on reciprocal deposits.
    (b) Contents.--The study required under subsection (a) shall 
include--
            (1) an analysis of how reciprocal deposits have performed 
        since 2018, which shall include--
                    (A) the use of quantitative and qualitative data;
                    (B) a breakdown of the usage of reciprocal deposits 
                by size of insured depository institution;
                    (C) the usage of reciprocal deposits during periods 
                of stress; and
                    (D) an analysis, to the extent practicable, of end-
                user depositors, such as municipalities, businesses, 
                and non-profit organizations, that drive demand for 
                reciprocal products;
            (2) an analysis, to the extent practicable, of how 
        reciprocal deposits compare to other deposit arrangements; and
            (3) an analysis of the benefits and potential risks of 
        reciprocal deposits.
    (c) Report.--Not later than 6 months after the date of enactment of 
this Act, the Federal Deposit Insurance Corporation shall issue a 
report to the Committee on Financial Services of the House of 
Representatives and the Committee on Banking, Housing, and Urban 
Affairs of the Senate containing all findings and determinations made 
in carrying out the report required under subsection (a).

SEC. 5. DISCRETIONARY SURPLUS FUND.

    (a) In General.--The dollar amount specified under section 
7(a)(3)(A) of the Federal Reserve Act (12 U.S.C. 289(a)(3)(A)) is 
reduced by $28,000,000.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on September 1, 2036.

            Passed the House of Representatives May 20, 2026.

            Attest:

                                                                 Clerk.
119th CONGRESS

  2d Session

                               H. R. 3234

_______________________________________________________________________

                                 AN ACT

  To amend the Federal Deposit Insurance Act to modify the amount of 
 reciprocal deposits of an insured depository institution that are not 
considered to be funds obtained by or through a deposit broker, and for 
                            other purposes.