“To amend the Federal Deposit Insurance Act to provide deposit insurance for noninterest-bearing transaction accounts, and for other purposes.”
No CRS summary available for this bill.
This section provides federal deposit insurance for noninterest-bearing transaction accounts (NITAs)—defined as accounts on which no interest is paid or accrued, from which withdrawals may be made for payments to third parties, and for which no advance notice of withdrawal is required—at insured depository institutions and insured credit unions up to a maximum amount to be set by FDIC rule within six months of enactment, between $250,000 (the standard maximum deposit insurance amount) and $5,000,000 and based on considerations of banking system stability, economic growth, and Deposit Insurance Fund safety. (1) For banks, this NITA coverage is in addition to the standard $250,000 limit and aggregates across affiliates under a single holding company; (2) for credit unions, NCUA must match the FDIC-determined maximum; and (3) coverage excludes NITAs at subsidiaries of global systemically important bank holding companies or insured branches of foreign banks (though such institutions remain eligible for standard $250,000 coverage). During a transition period, insured depository institutions with $10 billion or less in total assets are exempt from special assessments or assessment increases attributable to this NITA coverage.