S.3962 - Asset Growth Restriction Act of 2020116th Congress (2019-2020)
|Sponsor:||Sen. Moran, Jerry [R-KS] (Introduced 06/15/2020)|
|Committees:||Senate - Banking, Housing, and Urban Affairs|
|Latest Action:||Senate - 06/15/2020 Read twice and referred to the Committee on Banking, Housing, and Urban Affairs. (All Actions)|
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Summary: S.3962 — 116th Congress (2019-2020)All Information (Except Text)
Introduced in Senate (06/15/2020)
Asset Growth Restriction Act of 2020
This bill repeals restrictions related to brokered deposits and provides for asset growth restrictions applicable to insured depository institutions.
Brokered deposits are deposits made to an insured institution, such as a bank, through a third-party broker for investment purposes. Currently, only well-capitalized banks are allowed to solicit and accept brokered deposits, while institutions that are adequately capitalized may accept if granted a waiver. Undercapitalized banks are prohibited from accepting these deposits.
The bill repeals these brokered deposit restrictions and directs the Federal Deposit Insurance Corporation to establish limits on growth of average total assets for less than well-capitalized institutions to maintain their safety and soundness.