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 requires New Jersey state-chartered banks, credit unions, and other financial institutions supervised by the Banking Commissioner to hold extra reserves equal to five times their previous year's total losses from theft, fraud, cyber theft, or robbery (including related damages). Institutions must annually audit these losses and report findings to the Banking Commissioner to verify sufficient funds are available to reimburse affected customers during investigations. The law applies specifically to all financial institutions organized under New Jersey law, not state-chartered entities. It will take effect one year after enactment.