Keeping Deposits Local Act

This bill amends the Federal Deposit Insurance Act to change how banks count "reciprocal deposits" (deposits from other banks) when calculating brokered funds. It sets tiered percentage limits: banks with under $1 billion in total deposits can count up to 50% of reciprocal deposits as local, while larger banks face lower percentages (40% for $1B-$10B, 30% for $10B-$250B, etc.). The rule directly affects banks that use deposit brokers, particularly medium and large institutions, by allowing them to count more reciprocal deposits toward local deposit requirements. This reduces the portion of deposits classified as "brokered," potentially easing compliance for banks seeking to maintain local deposit ratios.