II 

116TH CONGRESS 

2D SESSION S. 3962 

To amend the Federal Deposit Insurance Act to remove restrictions on 

brokered deposits, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JUNE 15, 2020 

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 2020’’. 

6 SEC. 2. FINDINGS AND PURPOSE. 

7 (a) FINDINGS.—The Congress finds that— 

8 (1) restrictions on the acceptance of brokered 

9 deposits were enacted in 1989 in order to prevent 


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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 is to remove 

14 the current restrictions on brokered deposits and to au15 thorize the Federal Deposit Insurance Corporation to 

16 issue regulations that restrict asset growth by depository 

17 institutions that are less than well capitalized. 

18 SEC. 3. ASSET GROWTH RESTRICTION. 

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

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

21 amended— 

22 (1) in the section heading, by striking ‘‘BRO23 KERED DEPOSITS’’ and inserting ‘‘ASSET

24 GROWTH RESTRICTIONS’’; and 


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

2 inserting the following: 

3 ‘‘(a) DEFINITIONS.—In this section, the terms ‘aver4 age’, ‘critically undercapitalized’, and ‘well capitalized’ 

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

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

7 months after enactment of the Asset Growth Restriction 

8 Act of 2020, the Corporation, in consultation with the 

9 Board of Governors of the Federal Reserve System and 

10 the Comptroller of the Currency, shall promulgate regula11 tions imposing a restriction on average total asset growth 

12 for insured depository institutions that are less than well 

13 capitalized to maintain safety and soundness and minimize 

14 risk to the Deposit Insurance Fund. 

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

16 regulations described in subsection (b), the Corporation 

17 shall— 

18 ‘‘(1) establish a framework to impose one or 

19 more maximum levels of growth in average total as20 sets that an insured depository institution that is 

21 less than well capitalized may not exceed, and pro22 vide appropriate adjustments for growth resulting 

23 from corporate restructuring such as acquisitions or 

24 mergers; and 


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

2 Corporation to waive the maximum level established 

3 in paragraph (1) upon application by an insured de4 pository institution that is not critically under5 capitalized, based on conditions set by the Corpora6 tion. 

7 ‘‘(d) EXEMPTIONS AND ADDITIONAL RESTRIC8 TIONS.—As part of the regulations described in subsection 

9 (b), the Corporation may— 

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

11 asset growth restriction if the Corporation, in its 

12 discretion, determines that growth in such assets 

13 does not present risks to the safety and soundness 

14 of an insured depository institution; and 

15 ‘‘(2) impose additional restrictions on insured 

16 depository institutions to prevent circumvention or 

17 evasion of this section by an insured depository in18 stitution resulting from actions taken by the insured 

19 depository institution by, or through, its affiliates. 

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

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

22 restriction for a particular insured depository insti23 tution that is less than well capitalized, or a group 

24 of insured depository institutions that are less than 

25 well capitalized, if the Corporation finds that such a 


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1 level will not pose an undue risk to the Deposit In2 surance Fund; and 

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

4 restriction for a particular insured depository insti5 tution that is less than well capitalized, or a group 

6 of insured depository institutions that are less than 

7 well capitalized, if the Corporation finds that such a 

8 level is necessary to protect the Deposit Insurance 

9 Fund. 

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

11 shall revise its existing regulations to ensure that they con12 form to this section.’’. 

13 (b) RULE OF CONSTRUCTION.—An insured deposi14 tory institution that is in compliance with the regulations 

15 or orders issued pursuant to section 29 of the Federal De16 posit Insurance Act (12 U.S.C. 1831f), as amended by 

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

18 compliance with the asset growth standard established 

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

Æ 


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