Retail Checking Account Protection Act of 2016

Bill: 114-hr-5660
Sponsor: full_name: Rep. Williams, Roger [R-TX-25]
Introduced: 2016-07-07
Policy area: Finance and Financial Sector
Subjects: Bank accounts, deposits, capital

Banking and financial institutions regulation
Latest action: action_date: 2016-09-27
text: Hearings Held by the Subcommittee on Financial Institutions and Consumer Credit Prior to Referral.

Summaries:
action_date: 2016-07-07
action_desc: Introduced in House
text: <p><strong>Retail Checking Account Protection Act of 2016</strong></p> <p>This bill amends the Federal Deposit Insurance Act to provide that the stable retail deposits of an insured depository institution shall not be considered to be funds obtained by or through a deposit broker. Currently, stable retail deposits are considered brokered deposits. As a result, those deposits are subject to restrictions applicable to other brokered deposits, such as prohibitions on undercapitalized banks accepting brokered deposits. This bill would exclude stable retail deposits from those restrictions.</p>  <p>

tv_txt: I 114th CONGRESS 2d Session H. R. 5660 IN THE HOUSE OF REPRESENTATIVES July 7, 2016 Mr. Williams (for himself and Ms. Moore ) introduced the following bill; which was referred to the Committee on Financial Services A BILL To amend the Federal Deposit Insurance Act to provide that the stable retail deposits of an insured depository institution are not considered to be funds obtained by or through a deposit broker, and for other purposes.

1. Short title This Act may be cited as the Retail Checking Account Protection Act of 2016 . 2. Limited exception for stable retail deposits (a) In general Section 29 of the Federal Deposit Insurance Act ( 12 U.S.C. 1831f ) is amended by adding at the end the following new subsection: (i) Limited exception for stable retail deposits (1) In general Stable retail deposits of an insured depository institution shall not be considered to be funds obtained, directly or indirectly, by or through a deposit broker. (2) Rule of construction Nothing in this subsection shall be construed to limit the authority of the Corporation to require, on a case-by-case basis, that an insured depository institution that is less than adequately capitalized (as defined in section 38(b)(1)(B)) not accept particular types of deposits upon finding that the acceptance of such deposits constitutes an unsafe or unsound practice with respect to such institution. (3) Definitions In this subsection: (A) Stable retail deposit The term stable retail deposit means a stable retail deposit (as defined under section 329.3 of title 12, Code of Federal Regulations, as in effect on January 1, 2016) that is in an account— (i) opened by a retail customer; and (ii) that is held in the name of the retail customer. (B) Retail customer The term retail customer has the meaning given the term retail customer or counterparty under section 329.3 of title 12, Code of Federal Regulations, as in effect on January 1, 2016. . (b) Applicability Nothing in this Act or the amendment made by this Act shall be construed to limit the application of any provision of the Federal Deposit Insurance Act, other than section 29 of such Act ( 12 U.S.C. 1831f ), to an insured depository institution (as defined in section 3 of such Act ( 12 U.S.C. 1813 )).