Keeping Deposits Local Act

This section would rewrite the rule in the Federal Deposit Insurance Act that sets how much of an insured bank's reciprocal deposits do not count as funds obtained through a deposit broker. Under the new rule, the following amounts of an agent institution's reciprocal deposits would not count as broker-obtained funds, added together: 50 percent of the portion of the institution's total liabilities that is $1,000,000,000 or less; 40 percent of the portion of total liabilities above $1,000,000,000 and up to $10,000,000,000; 30 percent of the portion above $10,000,000,000 and up to $250,000,000,000; 20 percent of the portion above $250,000,000,000 and up to $1,000,000,000,000; and 2 percent of any portion above $1,000,000,000,000.

This section would replace part of the Federal Deposit Insurance Act's definition of agent institution. Under the new text, one part of the definition requires that, when the institution was most recently examined under section 10(d) of the Act, it was assigned a CAMELS rating of 1, 2, or 3. This condition is joined by "and" to at least one other requirement in the same definition that this section does not change.