S. 2757

Keeping Deposits Local Act

Shown here: Introduced in Senate (2025-09-10)

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.

1. Short title

This Act may be cited as the “Keeping Deposits Local Act”.

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 not more than $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 more than $1,000,000,000, but not more than $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 more than $10,000,000,000, but not more than $250,000,000,000.
(D) An amount equal to 20 percent of the portion, if any, of the total liabilities of the agent institution that is more than $250,000,000,000, but not more than $1,000,000,000,000.
(E) An amount equal to 2 percent of the portion, if any, of the total liabilities of the agent institution that is more than $1,000,000,000,000.

3. Definition of Agent Institution

Section 29(i)(2)(A)(i)(I) of the Federal Deposit Insurance Act (12 U.S.C. 1831f(i)(2)(A)(i)(I)) is amended by striking “found to have a composite condition of outstanding or good” and inserting “assigned a CAMELS rating of 1, 2, or 3”.

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 not more than $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 more than $1,000,000,000, but not more than $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 more than $10,000,000,000, but not more than $250,000,000,000.

(D) An amount equal to 20 percent of the portion, if any, of the total liabilities of the agent institution that is more than $250,000,000,000, but not more than $1,000,000,000,000.

(E) An amount equal to 2 percent of the portion, if any, of the total liabilities of the agent institution that is more than $1,000,000,000,000.