Main Street Depositor Protection Act

The "Main Street Depositor Protection Act" aims to significantly expand federal deposit insurance coverage for certain types of accounts. It amends both the Federal Deposit Insurance Act and the Federal Credit Union Act to provide additional insurance for noninterest-bearing transaction accounts , ensuring greater protection for depositors. Specifically, the bill mandates that the Federal Deposit Insurance Corporation (FDIC) and the National Credit Union Administration (NCUA) insure the net amount in these accounts up to $10,000,000 per depositor , which is separate from and in addition to the standard maximum deposit insurance amount. A "noninterest-bearing transaction account" is defined as one where no interest is accrued or paid, withdrawals can be made easily without advance notice, and funds are accessible for third-party payments. However, this expanded coverage explicitly excludes amounts maintained at global systemically important bank holding companies and insured branches of foreign banks. To ease implementation, the Act includes a 10-year transition period during which the FDIC and NCUA will gradually incorporate these newly insured amounts into their respective fund calculations. Furthermore, insured depository institutions with total assets of $10 billion or less are exempt from any special assessments or assessment increases solely due to this expanded insurance during the transition. Both the FDIC and NCUA are authorized to issue regulations to prevent evasion of these new insurance limitations.