Bill
Bill > A3876
NJ A3876
NJ A3876Requires State-chartered financial institutions to increase minimum reserve balances by five times amount of previous year's losses relating to fraud and theft.
summary
Introduced
01/13/2026
01/13/2026
In Committee
01/13/2026
01/13/2026
Crossed Over
Passed
Dead
Introduced Session
2026-2027 Regular Session
Bill Summary
This bill requires State-chartered financial institutions to maintain, in addition to any amount of reserve or minimum capital already required of the institution by law or regulation, a reserve balance in an amount of at least five times the total value of the thefts, cyber thefts, fraud, and robberies reported to the institution in the previous year plus any related damages. In addition, the bill requires financial institutions to conduct an audit of the losses sustained by the institution over the previous year and to report the findings of the audit to the Commissioner of Banking and Insurance. The purpose of the audit and report is to verify that each financial institution has enough reserve balance to return customers' lost or stolen money while the institution investigates and recovers the lost or stolen money.
AI Summary
This bill requires financial institutions chartered in the state, such as banks and credit unions, to hold a larger reserve balance, which is money set aside to cover potential losses. Specifically, these institutions must maintain a reserve equal to at least five times the total amount of money lost in the previous year due to theft, cyber theft (theft through computers or the internet), fraud, and robbery, including any associated damages. To ensure compliance, each institution must conduct an annual audit of these losses and report the findings to the Commissioner of Banking and Insurance, who oversees these financial entities. The primary goal of this increased reserve requirement and audit process is to guarantee that financial institutions have sufficient funds to reimburse customers for any money lost or stolen while the institution works to investigate and recover those funds. This new requirement will take effect one year after the bill is enacted.
Committee Categories
Business and Industry
Sponsors (1)
Last Action
Introduced, Referred to Assembly Financial Institutions and Insurance Committee (on 01/13/2026)
Official Document
bill text
bill summary
Loading...
bill summary
Loading...
bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.njleg.state.nj.us/bill-search/2026/A3876 |
| BillText | https://pub.njleg.gov/Bills/2026/A4000/3876_I1.HTM |
Loading...