Changes how banks count certain shared deposits, affecting how they are regulated.
This bill, called the "Keeping Deposits Local Act," would change how banks count certain shared deposits they exchange with other banks. It would update the rules for how much of these "reciprocal deposits" are not considered "brokered funds," which are deposits gathered by a third party and often have stricter rules. This would affect insured banks by changing their regulatory calculations and how some qualify as "agent institutions."
Today, the Federal Deposit Insurance Act uses specific percentages and thresholds to determine how much of a bank's reciprocal deposits are not considered brokered funds. An "agent institution" is defined by having a "composite condition of outstanding or good." After this bill, the percentages and thresholds would be replaced with a new tiered system based on the bank's total liabilities (e.g., 50% for the first $1 billion, 40% for the next $9 billion, and so on). It would also redefine an "agent institution" as one with a CAMELS rating of 1, 2, or 3.
S 2757 · 119th Congress · September 10, 2025 · AI Summary by gemini-2.5-flash · 8/10
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3 filings mentioned this bill
Amounts reflect total quarterly lobbying spend reported to the Senate, not bill-specific spending. Source: Senate LDA filings.