Keeping Deposits Local Act

Floor Speech

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Mr. EMMER. Mr. Speaker, I thank Chairman Hill for yielding.

Mr. Speaker, reciprocal deposits are secure, fully FDIC-insured deposits that enable community banks to retain local funds, while at the same time ensuring those deposits remain protected.

In 2018, Congress enacted nonpartisan legislation recognizing that most reciprocal deposits should not be treated as brokered deposits. I was proud to lead that initiative then, and I am proud to build on that progress with the bill before us today.

Since the enactment of S. 2155 nearly 8 years ago, many banks have turned to these low-cost, core deposits, as they have approached the current limits of the lesser of $5 billion or 20 percent of total liabilities.

In response, my colleague, Representative Beatty, and I introduced the Keeping Deposits Local Act, a nonpartisan bill that updates existing thresholds so that community and regional banks can more easily qualify for nonbrokered treatment of reciprocal deposits.

Simply put, this bill brings our laws in line with today's economic realities. It gives banks much-needed flexibility and offers local communities better access to capital, all while making our banking system more resilient.

I thank Chairman Hill for his tireless work and advocacy on this issue, and I encourage all of our colleagues to support this bill. Let's give our local banks the tools they need to grow, compete, and invest in Main Street.

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