A study of reciprocal deposits is due in six months
What the document says“The Federal Deposit Insurance Corporation, in consultation with the Board of Governors of the Federal Reserve System, shall carry out a study on reciprocal deposits.”
The section requires the Federal Deposit Insurance Corporation, consulting the Board of Governors of the Federal Reserve System, to study reciprocal deposits, covering how they have performed since 2018 with numbers and interviews, use broken out by bank size, use during periods of stress, and the depositors driving demand, how they compare with other deposit arrangements, and their benefits and risks. A report with all findings is due to the House Committee on Financial Services and the Senate Committee on Banking, Housing, and Urban Affairs within six months of enactment.
What the document actually says“The Federal Deposit Insurance Corporation, in consultation with the Board of Governors of the Federal Reserve System, shall carry out a study on reciprocal deposits.”
A federal insurer must study these swapped deposits. It must ask the central bank for input.
The study looks at how the deposits have behaved since 2018. It looks hardest at times of stress. A report is due to Congress within six months.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.