Bill > HR3234

This bill amends the Federal Deposit Insurance Act to change how reciprocal deposits (a type of banking arrangement where banks exchange deposits to help each other meet funding needs) are classified for regulatory purposes. Specifically, the bill creates a tiered system for determining how much of a bank's reciprocal deposits will not be considered as funds obtained through a deposit broker. The tiers are based on the total liabilities of the bank, with different percentages allowed for different liability ranges: 50% for liabilities up to $1 billion, 40% for liabilities between $1 billion and $10 billion, 30% for liabilities between $10 billion and $250 billion, 20% for liabilities between $250 billion and $1 trillion, and 2% for liabilities over $1 trillion. Additionally, the bill modifies the definition of an "agent institution" by requiring that when the institution was last examined, it must have been assigned a CAMELS rating of 1, 2, or 3 (a banking supervisory rating system that evaluates a bank's Capital adequacy, Asset quality, Management, Earnings, Liquidity, and Sensitivity to market risk). This change could provide more flexibility for banks in managing their deposits while maintaining regulatory oversight.

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https://www.congress.gov/bill/119th-congress/house-bill/3234/all-info