Depositor Protection Act of 2023

The Depositor Protection Act of 2023 increases federal deposit insurance coverage for noninterest-bearing transaction accounts (such as business checking accounts) from $250,000 to $100 million. Smaller banks with less than $250 billion in assets can choose to opt out of this increased coverage without paying additional fees. The bill also increases the threshold for reciprocal deposits from $5 billion to $10 billion and creates a temporary 90-day window for acquiring "distressed banks" (banks whose stock price has dropped at least 20% since March 2023) without standard regulatory approvals, subject to certain capital and rating conditions. The higher insurance limits would revert to $250,000 after two years.