What does Preamble of Keeping Deposits Local Act do?

This bill amends the Federal Deposit Insurance Act. The amendment modifies the amount of reciprocal deposits of an insured depository institution that are not considered to be funds obtained by or through a deposit broker.

What does SHORT TITLE. of Keeping Deposits Local Act do?

This bill is formally titled the Keeping Deposits Local Act.

What does AMOUNT OF RECIPROCAL DEPOSITS THAT ARE NOT CONSIDERED TO BE of Keeping Deposits Local Act do?

This section amends Section 29(i) of the Federal Deposit Insurance Act. The amendment modifies the calculation of reciprocal deposits that are not considered funds obtained by or through a deposit broker. The calculation is tiered based on the agent institution's total liabilities. Up to $1,000,000,000 of liabilities are treated as 50% reciprocal deposits. Liabilities between $1,000,000,000 and $10,000,000,000 are treated as 40% reciprocal deposits. Liabilities between $10,000,000,000 and $250,000,000,000 are treated as 30% reciprocal deposits.

What does DEFINITION OF AGENT INSTITUTION. of Keeping Deposits Local Act do?

This section amends Section 29(i)(2)(A)(i) of the Federal Deposit Insurance Act. The amendment strikes subclause (I) within that section. It inserts new language requiring that an institution was most recently examined under section 10(d) and assigned a CAMELS rating of 1, 2, or 3, or an equivalent rating under a comparable rating system.

What does RECIPROCAL DEPOSITS STUDY. of Keeping Deposits Local Act do?

This section directs the Federal Deposit Insurance Corporation (FDIC), in consultation with the Board of Governors of the Federal Reserve System, to conduct a study on reciprocal deposits. The study must analyze the performance of reciprocal deposits since 2018, using quantitative and qualitative data. The analysis should include a breakdown of reciprocal deposit usage by the size of insured depository institutions and their usage during periods of stress. The study will also analyze end-user depositors, such as municipalities, businesses, and non-profit organizations, to understand demand for reciprocal products. The study is required to compare reciprocal deposits to other deposit arrangements, to the extent practicable. The FDIC must analyze the benefits and potential risks of reciprocal deposits. The FDIC is required to submit a report of its findings to the House Committee on Financial Services and the Senate Committee on Banking, Housing, and Urban Affairs within six months of the Act's enactment.

What does DISCRETIONARY SURPLUS FUND. of Keeping Deposits Local Act do?

This section reduces the dollar amount specified under section 7(a)(3)(A) of the Federal Reserve Act by $28,000,000. The amendment made by this section will take effect on September 1, 2036. The House of Representatives passed this legislation on May 20, 2026.

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Keeping Deposits Local Act

Last updated: 5/21/2026 · Introduced: 5/7/2025

Author: Tom Emmer (R-MN)

TL;DR (AI)

This bill modifies the calculation of reciprocal deposits that are not considered funds obtained by or through a deposit broker, establishing tiered percentages based on an agent institution's total liabilities.
The bill revises the criteria for designating an 'agent institution,' requiring a recent CAMELS rating of 1, 2, or 3 from regulatory examinations.
The Federal Deposit Insurance Corporation (FDIC) is directed to conduct a study analyzing reciprocal deposits, including their performance, usage patterns, and potential risks, and to submit a report to Congress within six months of enactment.

119th Congresspassed houseHR. 6955(In Committee)Official page

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Other Sections

Includes provisions on preamble, short title., and 4 more.

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