[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 5347 Introduced in Senate (IS)]
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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.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Asset Growth Restriction Act of
2022''.
SEC. 2. FINDINGS AND PURPOSE.
(a) Findings.--Congress finds that--
(1) restrictions on the acceptance of brokered deposits
were enacted in 1989 in order to prevent the abuse of the
deposit insurance system by troubled depository institutions;
(2) since the enactment of the restrictions described in
paragraph (1), technological and demographic developments have
changed the way in which depository institutions seek and
source deposits, and, as a result, many deposits that are
classified as brokered pose little, if any, risk to the deposit
insurance system; and
(3) in today's economy, the greatest risk to the deposit
insurance system is asset growth by depository institutions
that are less than well capitalized.
(b) Purpose.--The purpose of this Act, and the amendments made by
this Act, is to remove the current (as of the date of enactment of this
Act) restrictions on brokered deposits and to authorize the Federal
Deposit Insurance Corporation to issue regulations that restrict asset
growth by depository institutions that are less than well capitalized.
SEC. 3. ASSET GROWTH RESTRICTION.
(a) Asset Growth Restriction.--Section 29 of the Federal Deposit
Insurance Act (12 U.S.C. 1831f) is amended--
(1) in the section heading, by striking ``brokered
deposits'' and inserting ``asset growth restrictions''; and
(2) by striking subsections (a) through (i), and inserting
the following:
``(a) Definitions.--In this section, the terms `average',
`critically undercapitalized', and `well capitalized' have the meanings
given those terms in section 38(b).
``(b) Regulations Required.--Not later than 18 months after the
date of enactment of the Asset Growth Restriction Act of 2022, the
Corporation, in consultation with the Board of Governors of the Federal
Reserve System and the Comptroller of the Currency, shall promulgate
regulations imposing a restriction on average total asset growth for
insured depository institutions that are less than well capitalized to
maintain safety and soundness and minimize risk to the Deposit
Insurance Fund.
``(c) Maximum Level of Growth.--As part of the regulations required
under subsection (b), the Corporation shall--
``(1) establish a framework to impose 1 or more maximum
levels of growth in average total assets that an insured
depository institution that is less than well capitalized may
not exceed, and provide appropriate adjustments for growth
resulting from corporate restructuring such as acquisitions or
mergers; and
``(2) establish a waiver process to enable the Corporation
to waive the maximum level established in paragraph (1) upon
application by an insured depository institution that is not
critically undercapitalized, based on conditions set by the
Corporation.
``(d) Exemptions and Additional Restrictions.--As part of the
regulations required under subsection (b), the Corporation may--
``(1) exempt specified classes of assets from the asset
growth restriction if the Corporation, in the discretion of the
Corporation, determines that growth in those assets does not
present risks to the safety and soundness of an insured
depository institution; and
``(2) impose additional restrictions on insured depository
institutions to prevent circumvention or evasion of this
section by an insured depository institution resulting from
actions taken by the insured depository institution by, or
through, affiliates of the insured depository institution.
``(e) Orders.--The Corporation may, by order--
``(1) establish a less restrictive level of growth
restriction for a particular insured depository institution
that is less than well capitalized, or a group of insured
depository institutions that are less than well capitalized, if
the Corporation finds that such a level will not pose an undue
risk to the Deposit Insurance Fund; and
``(2) establish a more restrictive level of growth
restriction for a particular insured depository institution
that is less than well capitalized, or a group of insured
depository institutions that are less than well capitalized, if
the Corporation finds that such a level is necessary to protect
the Deposit Insurance Fund.
``(f) Conforming Regulations.--The Corporation shall revise the
regulations of the Corporation, as in existence on the date of
enactment of the Asset Growth Restriction Act of 2022, to ensure that
those regulations conform to the requirements of this section.''.
(b) Rule of Construction.--An insured depository institution that
is in compliance with the regulations or orders issued pursuant to
section 29 of the Federal Deposit Insurance Act (12 U.S.C. 1831f), as
amended by subsection (a) of this section, shall be deemed to be in
compliance with the asset growth standard established pursuant to
section 39 of that Act (12 U.S.C. 1831p-1).
(c) Technical and Conforming Amendment.--Section 274(5) of the
Truth in Savings Act (12 U.S.C. 4313(5)) is amended by inserting ``, as
that provision was in effect on the day before the date of enactment of
the Asset Growth Restriction Act of 2022'' after ``Act''.
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