Passed in the House on May 20, 2026 · 405 Yea, 0 Nay, 25 Not Voting
Question: On Motion to Suspend the Rules and Pass, as Amended: H R 3234 Keeping Deposits Local Act
In plain English: This bill allows banks to accept larger amounts of reciprocal deposits, which are used to increase deposit insurance coverage for customers. It also changes the financial health ratings banks need to qualify for accepting these deposits.
This bill increases the amount insured depository institutions may accept as reciprocal deposits. (Reciprocal deposits are used by institutions to increase the availability of deposit insurance by splitting large deposits using a reciprocal network of institutions.) The bill creates a tiered system so that the allowable amount is based on the institution's total liabilities. Additionally, the bill changes certain qualifications insured depository institutions may be required to have to accept r…