Keeping Deposits Local Act
Banking: Keeping Deposits Local Act
The Keeping Deposits Local Act has been approved by the House Financial Services Committee and is now waiting for a vote by the full House of Representatives. It is currently placed on the Union Calendar, which means it is ready for further action. The bill is actively moving through the legislative process.
Legislative Progress
This bill has strong bipartisan support and has already cleared the committee stage, which is where most bills fail. It also has the backing of community banking advocates.
Key Points
- This bill changes how the government treats reciprocal deposits, which are a way for people with large accounts to keep their money in local banks while staying fully insured. It allows banks to hold more of these deposits without them being labeled as brokered deposits, which are usually subject to stricter and more expensive regulations.
- The goal is to help community banks keep more money in their local areas. When banks can keep these deposits, they have more cash available to provide loans to local small businesses and families instead of the money being moved to large national institutions.
- The plan also expands which banks can use this system. It would allow banks with average safety ratings to participate, whereas current rules often limit this to only the highest-rated banks.
- The government would conduct a new study to see how these deposits have worked since 2018. This study will look at how stable the money is during times of financial stress and how it helps groups like local governments and non-profit organizations.
Impact Analysis
Govbase has not yet run an impact analysis on this legislation.
Milestones
Placed on the Union Calendar, Calendar No. 314.
The bill is now on the schedule for the full chamber to consider. It's in line for debate and a vote.
Reported (Amended) by the Committee on Financial Services. H. Rept. 119-362.
Ordered to be Reported (Amended) by the Yeas and Nays: 51 - 0.
The committee approved this bill and is sending it to the full chamber for a vote. This is a significant step — most bills never get this far.
Committee Consideration and Mark-up Session Held
Referred to the House Committee on Financial Services.
Votes
No votes have been recorded for this legislation yet.
News
No related news coverage found for this legislation yet.
Source Information
Document Type
Congressional Bill
Official Title
Keeping Deposits Local Act
Data Sources
Sponsor
Cosponsors
(11)Analysis generated by AI. Always verify with official sources.