II 

117TH CONGRESS 

2D SESSION S. 5347 

To amend the Federal Deposit Insurance Act to remove restrictions on 

brokered deposits, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

DECEMBER 21, 2022 

Mr. MORAN introduced the following bill; which was read twice and referred 

to the Committee on Banking, Housing, and Urban Affairs 

A BILL 

To amend the Federal Deposit Insurance Act to remove 

restrictions on brokered deposits, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Asset Growth Restric5 tion Act of 2022’’. 

6 SEC. 2. FINDINGS AND PURPOSE. 

7 (a) FINDINGS.—Congress finds that— 

8 (1) restrictions on the acceptance of brokered 

9 deposits were enacted in 1989 in order to prevent 


kjohnson on DSK79L0C42PROD with BILLS
2 

•S 5347 IS

1 the abuse of the deposit insurance system by trou2 bled depository institutions; 

3 (2) since the enactment of the restrictions de4 scribed in paragraph (1), technological and demo5 graphic developments have changed the way in which 

6 depository institutions seek and source deposits, and, 

7 as a result, many deposits that are classified as bro8 kered pose little, if any, risk to the deposit insurance 

9 system; and 

10 (3) in today’s economy, the greatest risk to the 

11 deposit insurance system is asset growth by deposi12 tory institutions that are less than well capitalized. 

13 (b) PURPOSE.—The purpose of this Act, and the 

14 amendments made by this Act, is to remove the current 

15 (as of the date of enactment of this Act) restrictions on 

16 brokered deposits and to authorize the Federal Deposit 

17 Insurance Corporation to issue regulations that restrict 

18 asset growth by depository institutions that are less than 

19 well capitalized. 

20 SEC. 3. ASSET GROWTH RESTRICTION. 

21 (a) ASSET GROWTH RESTRICTION.—Section 29 of 

22 the Federal Deposit Insurance Act (12 U.S.C. 1831f) is 

23 amended— 


kjohnson on DSK79L0C42PROD with BILLS
3 

•S 5347 IS

1 (1) in the section heading, by striking ‘‘BRO2 KERED DEPOSITS’’ and inserting ‘‘ASSET

3 GROWTH RESTRICTIONS’’; and 

4 (2) by striking subsections (a) through (i), and 

5 inserting the following: 

6 ‘‘(a) DEFINITIONS.—In this section, the terms ‘aver7 age’, ‘critically undercapitalized’, and ‘well capitalized’ 

8 have the meanings given those terms in section 38(b). 

9 ‘‘(b) REGULATIONS REQUIRED.—Not later than 18 

10 months after the date of enactment of the Asset Growth 

11 Restriction Act of 2022, the Corporation, in consultation 

12 with the Board of Governors of the Federal Reserve Sys13 tem and the Comptroller of the Currency, shall promul14 gate regulations imposing a restriction on average total 

15 asset growth for insured depository institutions that are 

16 less than well capitalized to maintain safety and soundness 

17 and minimize risk to the Deposit Insurance Fund. 

18 ‘‘(c) MAXIMUM LEVEL OF GROWTH.—As part of the 

19 regulations required under subsection (b), the Corporation 

20 shall— 

21 ‘‘(1) establish a framework to impose 1 or more 

22 maximum levels of growth in average total assets 

23 that an insured depository institution that is less 

24 than well capitalized may not exceed, and provide 

25 appropriate adjustments for growth resulting from 


kjohnson on DSK79L0C42PROD with BILLS
4 

•S 5347 IS

1 corporate restructuring such as acquisitions or 

2 mergers; and 

3 ‘‘(2) establish a waiver process to enable the 

4 Corporation to waive the maximum level established 

5 in paragraph (1) upon application by an insured de6 pository institution that is not critically under7 capitalized, based on conditions set by the Corpora8 tion. 

9 ‘‘(d) EXEMPTIONS AND ADDITIONAL RESTRIC10 TIONS.—As part of the regulations required under sub11 section (b), the Corporation may— 

12 ‘‘(1) exempt specified classes of assets from the 

13 asset growth restriction if the Corporation, in the 

14 discretion of the Corporation, determines that 

15 growth in those assets does not present risks to the 

16 safety and soundness of an insured depository insti17 tution; and 

18 ‘‘(2) impose additional restrictions on insured 

19 depository institutions to prevent circumvention or 

20 evasion of this section by an insured depository in21 stitution resulting from actions taken by the insured 

22 depository institution by, or through, affiliates of the 

23 insured depository institution. 

24 ‘‘(e) ORDERS.—The Corporation may, by order— 


kjohnson on DSK79L0C42PROD with BILLS
5 

•S 5347 IS

1 ‘‘(1) establish a less restrictive level of growth 

2 restriction for a particular insured depository insti3 tution that is less than well capitalized, or a group 

4 of insured depository institutions that are less than 

5 well capitalized, if the Corporation finds that such a 

6 level will not pose an undue risk to the Deposit In7 surance Fund; and 

8 ‘‘(2) establish a more restrictive level of growth 

9 restriction for a particular insured depository insti10 tution that is less than well capitalized, or a group 

11 of insured depository institutions that are less than 

12 well capitalized, if the Corporation finds that such a 

13 level is necessary to protect the Deposit Insurance 

14 Fund. 

15 ‘‘(f) CONFORMING REGULATIONS.—The Corporation 

16 shall revise the regulations of the Corporation, as in exist17 ence on the date of enactment of the Asset Growth Re18 striction Act of 2022, to ensure that those regulations con19 form to the requirements of this section.’’. 

20 (b) RULE OF CONSTRUCTION.—An insured deposi21 tory institution that is in compliance with the regulations 

22 or orders issued pursuant to section 29 of the Federal De23 posit Insurance Act (12 U.S.C. 1831f), as amended by 

24 subsection (a) of this section, shall be deemed to be in 


kjohnson on DSK79L0C42PROD with BILLS
6 

•S 5347 IS

1 compliance with the asset growth standard established 

2 pursuant to section 39 of that Act (12 U.S.C. 1831p–1). 

3 (c) TECHNICAL AND CONFORMING AMENDMENT.— 

4 Section 274(5) of the Truth in Savings Act (12 U.S.C. 

5 4313(5)) is amended by inserting ‘‘, as that provision was 

6 in effect on the day before the date of enactment of the 

7 Asset Growth Restriction Act of 2022’’ after ‘‘Act’’. 

Æ 


kjohnson on DSK79L0C42PROD with BILLS