“A bill 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 establishes additional federal deposit insurance for noninterest-bearing transaction accounts (i.e., checking accounts that do not pay interest) at insured depository institutions and insured credit unions, in addition to the standard maximum deposit insurance amount of $250,000. For insured depository institutions, the Federal Deposit Insurance Corporation (FDIC) must issue a rule within six months of enactment setting the maximum insurable amount per depositor (in the aggregate across accounts at institutions under the same holding company) at not less than $250,000 and not more than $5,000,000, based on financial stability, economic growth, and Deposit Insurance Fund safety considerations; excludes subsidiaries of global systemically important bank holding companies and insured branches of foreign banks (while preserving their $250,000 standard coverage); and prohibits subsequent changes except by act of Congress. It defines noninterest-bearing transaction accounts and exempts institutions with $10 billion or less in assets from special assessments or assessment increases during the transition period to offset costs of the expanded coverage. For insured credit unions, the National Credit Union Administration (NCUA) must provide the same maximum insurance amount for such accounts as set by the FDIC rule. (Thus, the change reinstates expired temporary unlimited coverage from 2008-2012 but with a statutory cap and exclusions to mitigate moral hazard and systemic risk.)