Keeping Deposits Local Act

This bill allows banks and other deposit-taking institutions to accept more reciprocal deposits, which are large deposits that get split up and shared among different banks through a network to increase deposit insurance coverage. The bill creates different limits based on how big the institution is, measured by their total liabilities. It also makes it easier for institutions to qualify for these reciprocal deposits by allowing those with ratings of 1, 2, or 3 on the CAMELS rating system to participate, where 1 is the best rating and 5 is the worst.

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