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.

This bill requires the Federal Deposit Insurance Corporation (FDIC) and the National Credit Union Administration (NCUA) to conduct an analysis regarding the insurance coverage of certain types of bank and credit union accounts known as "covered transaction accounts."

Key Elements of the Bill

1. Studies by the FDIC

The FDIC will need to:

• Collect data to analyze how often a higher deposit insurance limit should apply to covered transaction accounts.
• Assess the economic effects on the banking sector of potentially raising the standard maximum deposit insurance amount.
• Identify the characteristics of covered transaction accounts and establish ways to prevent misclassification of other account types as covered transaction accounts for higher insurance coverage.
• Examine how a higher deposit insurance assessment would affect small, medium, and large banks.
• Evaluate the expected effects on the safety and soundness of banks with account holders who have covered transaction accounts.
• Analyze the implications for competition among U.S. banks if the deposit insurance limit is raised.
• Make all collected data and analyses available to the public.

2. Studies by the NCUA

The NCUA will perform similar analyses for credit unions, which include:

• Gathering data to determine if a higher insurance coverage limit should apply to covered transaction accounts in credit unions.
• Conducting an economic evaluation of raising the insurance amount in the credit union sector.
• Establishing the defining characteristics of covered transaction accounts in credit unions and ways to deter misclassification of accounts.
• Investigating how a higher insurance assessment would impact various sizes of credit unions.
• Evaluating the safety and soundness of credit unions with covered transaction accounts.
• Assessing the competitive impacts within the credit union sector should the insurance limit increase.
• Publishing the findings of the analyses to the public.

3. Definitions

The bill defines a “covered transaction account” as:

• An account maintained by businesses, non-profits, municipalities, or similar entities that is either non-interest bearing or pays a minimal interest.

Additionally, it specifies terms related to deposit insurance, such as "standard maximum deposit insurance amount," and establishes the context for how various financial terms should be understood within the framework of the bill.

Relevant Companies

• None found