Bill Summary
The proposed legislation mandates the Federal Deposit Insurance Corporation (FDIC) and the National Credit Union Administration (NCUA) to conduct a comprehensive analysis regarding the insurance coverage of "covered transaction accounts." These accounts, maintained by businesses, non-profits, and municipalities, can be non-interest bearing or pay minimal interest.
Key components of the analysis include:
1. **Determining the Need for Increased Coverage**: Both the FDIC and NCUA will assess whether the maximum deposit or share insurance amount for these accounts should be raised.
2. **Economic Impact Studies**: The agencies will evaluate the potential effects of higher insurance limits on the banking and credit union systems, including their safety and soundness.
3. **Characteristics and Misclassification Prevention**: They will identify the defining features of covered transaction accounts and develop strategies to prevent entities from misclassifying other accounts to gain higher insurance coverage.
4. **Distributional Effects**: The analysis will include the impact of increased insurance assessments on different sizes of insured institutions.
5. **Public Disclosure**: The findings from these analyses will be made publicly available to ensure transparency.
This legislation aims to enhance the security and viability of financial institutions while protecting the interests of account holders.
Possible Impacts
The proposed legislation regarding the analysis of covered transaction accounts by the Federal Deposit Insurance Corporation (FDIC) and the National Credit Union Administration (NCUA) could affect people in several ways:
1. **Increased Insurance Coverage for Businesses and Organizations**: If the analyses determine that the standard maximum deposit insurance amount should be raised for covered transaction accounts, businesses, non-profits, and municipalities could benefit significantly. This would provide greater financial security for these entities, especially in times of economic uncertainty, as their deposited funds would be better protected against bank failures.
2. **Potential Changes in Banking Fees**: The legislation requires an analysis of the distributional impact of higher deposit insurance assessments on various sizes of insured depository institutions. If banks and credit unions face increased costs due to higher insurance assessments, they might pass these costs onto consumers in the form of higher fees for account maintenance or other services. This could affect individuals and organizations that rely on these financial institutions.
3. **Enhanced Safety and Soundness of Financial Institutions**: By conducting an analysis of the expected impact on the safety and soundness of insured depository institutions with covered transaction accounts, the legislation aims to ensure that these institutions remain stable. A stronger banking and credit union sector could lead to increased consumer confidence, encouraging more people to use banks and credit unions for their financial needs, thereby impacting their overall financial well-being.
Overall, these analyses and their outcomes could influence the financial landscape for a wide range of individuals and organizations, promoting greater security and stability in the banking sector.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8090 Introduced in House (IH)]
<DOC>
119th CONGRESS
2d Session
H. R. 8090
To require the Federal Deposit Insurance Corporation and the National
Credit Union Administration to carry out an analysis to determine
whether insurance coverage should be raised on covered transaction
accounts, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 25, 2026
Mr. Stutzman introduced the following bill; which was referred to the
Committee on Financial Services
_______________________________________________________________________
A BILL
To require the Federal Deposit Insurance Corporation and the National
Credit Union Administration to carry out an analysis to determine
whether insurance coverage should be raised on covered transaction
accounts, 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. STUDY OF INSURANCE OF COVERED TRANSACTION ACCOUNTS.
(a) Insured Depository Institutions.--
(1) Analyses.--Not earlier than the end of the 4th full
calendar quarter beginning after the date of enactment of this
Act and not later than the end of the 5th full calendar quarter
beginning after the date of enactment of this Act, the Board of
Directors of the Federal Deposit Insurance Corporation shall--
(A) collect data and carry out an analysis of
covered transaction accounts to determine the extent to
which a higher standard maximum deposit insurance
amount should apply to such accounts;
(B) conduct an economic analysis of the impact on
the banking system of a higher standard maximum deposit
insurance amount for covered transaction accounts;
(C) determine the defining characteristics of
covered transaction accounts and determine methods to
prevent and reduce incentives of insured depository
institutions and depositors to mischaracterize other
types of deposit accounts as covered transaction
accounts in order to obtain higher deposit insurance
coverage;
(D) conduct an analysis of the distributional
impact of higher deposit insurance assessments for
covered transaction accounts on small, medium, and
large insured depository institutions;
(E) conduct an analysis of the expected impact on
the safety and soundness of insured depository
institutions that have account holders with covered
transaction accounts;
(F) conduct an analysis of the effect on
competition in the U.S. banking sector of any increase
in the standard maximum deposit insurance amount for
covered transaction accounts; and
(G) make the data and analyses described in
subparagraphs (A) through (F) available to the public.
(2) Definitions.--In this subsection:
(A) Covered transaction account.--The term
``covered transaction account'' means a transaction
account maintained at an insured depository
institution--
(i) by a business, non-profit,
municipality, or similar organization; and
(ii) that--
(I) is non-interest bearing; or
(II) pays a de minimis amount of
interest, as established by the
Corporation.
(B) Standard maximum deposit insurance amount.--The
term ``standard maximum deposit insurance amount'' has
the meaning given that term in section 11(a)(1)(E) of
the Federal Deposit Insurance Act (12 U.S.C.
1821(a)(1)(E)).
(C) Transaction account.--The term ``transaction
account'' means a deposit or account from which the
depositor or account holder is permitted to make
transfers or withdrawals by negotiable or transferable
instrument, payment order of withdrawal, telephone
transfer, or other similar device for the purpose of
making payments or transfers to third persons or others
or from which the depositor or account holder may make
third party payments at an automated teller machine or
a remote service unit, or other electronic device,
including by debit card, and includes such other
deposits or accounts maintained at an insured
depository institution that the Corporation may
determine consistent with this definition.
(D) Additional banking terms.--The terms
``deposit'' and ``insured depository institution'' have
the meaning given those terms, respectively, in section
3 of the Federal Deposit Insurance Act (12 U.S.C.
1813).
(b) Insured Credit Unions.--
(1) Analyses.--Not earlier than the end of the 4th full
calendar quarter beginning after the date of enactment of this
Act and not later than the end of the 5th full calendar quarter
beginning after the date of enactment of this Act, the National
Credit Union Administration Board shall--
(A) collect data and carry out an analysis of
covered transaction accounts to determine the extent to
which a higher standard maximum share insurance amount
should apply to such accounts;
(B) conduct an economic analysis of the impact on
the credit union system of a higher standard maximum
share insurance amount for covered transaction
accounts;
(C) determine the defining characteristics of
covered transaction accounts and determine methods to
prevent and reduce incentives of insured credit unions
and credit union members to mischaracterize other types
of deposit or share accounts as covered transaction
accounts in order to obtain higher share insurance
coverage;
(D) conduct an analysis of the distributional
impact of higher share insurance assessments for
covered transaction accounts on small, medium, and
large insured credit unions;
(E) conduct an analysis of the expected impact on
the safety and soundness of insured credit unions that
have account holders with covered transaction accounts;
(F) conduct an analysis of the effect on
competition in the U.S. credit union sector of any
increase in the standard maximum share insurance amount
for covered transaction accounts; and
(G) make the data and analyses described in
subparagraphs (A) through (F) available to the public.
(2) Definitions.--In this subsection:
(A) Covered transaction account.--The term
``covered transaction account'' means a transaction
account maintained at an insured credit union--
(i) by a business, non-profit,
municipality, or similar organization; and
(ii) that--
(I) does not pay a dividend; or
(II) pays a de minimis dividend, as
established by the Board.
(B) Insured credit union.--The term ``insured
credit union'' has the meaning given that term in
section 101 of the Federal Credit Union Act (12 U.S.C.
1752).
(C) Standard maximum share insurance amount.--The
term ``standard maximum share insurance amount'' has
the meaning given that term in section 207(k)(6) of the
Federal Credit Union Act (12 U.S.C. 1787(k)(6)).
(D) Transaction account.--The term ``transaction
account'' means a deposit, share, or account from which
the depositor or account holder is permitted to make
transfers or withdrawals by negotiable or transferable
instrument, payment order of withdrawal, telephone
transfer, or other similar device for the purpose of
making payments or transfers to third persons or others
or from which the depositor or account holder may make
third party payments at an automated teller machine or
a remote service unit, or other electronic device,
including by debit card, and includes such other
deposits or accounts maintained at an insured credit
union that the Board may determine consistent with this
definition.
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