Deposit Insurance Reform Act of 2023

To amend the Federal Deposit Insurance Act to permit an insured depository institution to elect to have a higher standard maximum deposit insurance amount applicable to commercial deposits of the institution and to require higher assessments of such an institution, to amend the Federal Credit Union Act to provide a similar program for insured credit unions, and for other purposes. 1. Short title This Act may be cited as the Deposit Insurance Reform Act of 2023 2. Election of higher standard maximum deposit insurance amount for commercial deposits Section 11 of the Federal Deposit Insurance Act ( 12 U.S.C. 1821 (x) Election of higher standard maximum deposit insurance amount for commercial deposits (1) Multiple levels of deposit insurance The Corporation shall establish multiple levels of standard maximum deposit insurance amounts that are applicable to commercial deposits and are above the amount defined under subsection (a)(1)(E). (2) Election An insured depository institution may elect to apply a standard maximum deposit insurance amount established under paragraph (1) to the commercial deposits of the insured depository institution. (3) Deposit Insurance Fund assessments The Corporation shall set the assessment rate of an insured depository institution making an election under paragraph (2) at such higher rate as is necessary to reflect the increased risk to the Deposit Insurance Fund from the failure of an insured depository institution with a higher standard maximum deposit insurance. (4) Rulemaking The Corporation shall issue such rules as may be necessary to carry out this subsection. (5) Commercial deposits defined In this subsection, the term commercial deposits . 3. Election of higher standard maximum share insurance amount for commercial deposits Section 207(k) of the Federal Credit Union Act ( 12 U.S.C. 1787(k) (7) Election of higher standard maximum share insurance amount for commercial deposits (A) Multiple levels of share insurance The Board shall establish multiple levels of standard maximum share insurance amounts that are applicable to commercial deposits and are above the amount defined under paragraph (6). (B) Election An insured credit union may elect to apply a standard maximum share insurance amount established under subparagraph (A) to the commercial deposits instead of the amount defined under paragraph (6). (C) Fund premium charges The Board shall set the premium charge rate applicable to an insured credit union making an election under subparagraph (B) at such higher rate as is necessary to reflect the increased risk to the Fund from the failure of an insured credit union with a higher standard maximum share insurance amount. (D) Rulemaking The Board shall issue such rules as may be necessary to carry out this paragraph. (E) Commercial deposits defined In this paragraph, the term commercial deposits .

Summary: Deposit Insurance Reform Act of 2023 This bill requires the Federal Deposit Insurance Corporation (FDIC) and the National Credit Union Administration (NCUA) to establish additional levels of deposit insurance. Currently, the FDIC and NCUA insures individual accounts up to $250,000. Under the bill, FDIC and NCUA must establish insurance amounts above existing levels that are applicable to commercial deposits. An institution may elect to apply a higher insurance amount to commercial deposits.