Requires State-chartered financial institutions to increase minimum reserve balances by five times amount of previous year's losses relating to fraud and theft.

This bill (A 3876) requires New Jersey state-chartered banks, credit unions, and similar financial institutions to hold reserves equal to five times their previous year's reported losses from fraud, theft, cyber theft, or robbery, plus related damages. It directly affects these institutions by mandating higher reserve balances to cover customer losses during investigations. Key provisions include annual audits of these losses and mandatory reporting of audit findings to the Banking Commissioner. The law aims to ensure institutions maintain sufficient funds to return lost or stolen customer money while investigations occur, taking effect one year after enactment.