Us Congress 2023-2024 Regular Session

Us Congress Senate Bill SB2403

Introduced
7/20/23  

Caption

Payroll Account Guarantee Act of 2023

Impact

The enactment of SB2403 could reshape the insurance framework surrounding transaction accounts at banks and credit unions. By fully insuring the net amount held in noninterest-bearing accounts, the bill aims to safeguard funds against risks that may otherwise contribute to deposits being uninsured. The potential benefits include increased trust in financial institutions, which can lead to greater deposit growth and economic activity, especially for smaller financial entities benefiting from the lack of fees associated with this insurance.

Summary

SB2403, known as the Payroll Account Guarantee Act of 2023, aims to amend the Federal Deposit Insurance Act to extend insurance coverage to noninterest-bearing transaction accounts. This type of account is defined within the bill as those maintained at insured depository institutions that do not accrue or pay interest and allow for easy withdrawal methods. The intention behind the bill is to provide enhanced security for depositors, particularly businesses that utilize payroll accounts for employee wages and operational funds, ensuring their funds are federally insured up to specified limits, which can promote financial stability and confidence within the banking system.

Contention

While the bill presents a proactive approach to ensuring financial security for depositors, there may be contention surrounding its implications for financial institutions. Critics could argue about the potential strain this could place on the FDIC and how this might affect the overarching financial landscape, potentially leading to calls for increased capital reserves or regulatory scrutiny. Additionally, the debate may center on how additional insurance influences the competitive dynamics among banks and credit unions, particularly smaller institutions, against larger entities.

Companion Bills

US SB3012

Related Deposit Security Act

Previously Filed As

US HB5845

Depositor Protection Act of 2023

US SB3012

Deposit Security Act

US SB1572

Depositor Protection Act of 2023

US HB10542

To amend the Federal Deposit Insurance Act and the Federal Credit Union Act to authorize a temporary transaction account guarantee program, expand deposit and share insurance to cover business payment accounts, and for other purposes.

US SB2491

Wall Street Tax Act of 2023

US HB5065

Federal Jobs Guarantee Development Act of 2023

US SB2651

Federal Jobs Guarantee Development Act of 2023

US SB441

American Opportunity Accounts Act

US SB2335

Financial Regulatory Accountability Act of 2023

US HB1041

American Opportunity Accounts Act

Similar Bills

No similar bills found.