119-hr3234

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

    (RH) ]

<DOC>

 Union Calendar No. 314
119th CONGRESS
 1st Session
 H. R. 3234

 [Report No. 119-362]

 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.

_______________________________________________________________________

 IN THE HOUSE OF REPRESENTATIVES

 May 7, 2025

 Mr. Emmer (for himself, Mrs. Beatty, Mr. Meuser, and Ms. Moore of 
 Wisconsin) introduced the following bill; which was referred to the 
 Committee on Financial Services

 November 4, 2025

 Additional sponsors: Mr. Barr, Mr. Flood, Mr. Williams of Texas, Mr. 
 Ezell, Mr. Sessions, Mr. Golden of Maine, Mr. Bergman, and Mr. Rogers 
 of Alabama

 November 4, 2025

 Reported with an amendment, committed to the Committee of the Whole 
 House on the State of the Union, and ordered to be printed
 [Strike out all after the enacting clause and insert the part printed 
 in italic]
[For text of introduced bill, see copy of bill as introduced on May 7, 
 2025]

_______________________________________________________________________

 A BILL

 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) .
 Union Calendar No. 314

119th CONGRESS

 1st Session

 H. R. 3234

 [Report No. 119-362]

_______________________________________________________________________

 A BILL

 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.

_______________________________________________________________________

 November 4, 2025

 Reported with an amendment, committed to the Committee of the Whole 
 House on the State of the Union, and ordered to be printed