Rep. Lucas and Sen. Hagerty Introduce the Main Street Depositor Protection Act

Washington, DC – Representative Frank D. Lucas (R-OK-03) and Senator Bill Hagerty (R-TN) recently introduced the Main Street Depositor Protection Act, a bipartisan bill aimed at strengthening the financial stability of the banking system and promoting economic growth.

The bill would direct the Federal Deposit Insurance Commission and National Credit Union Administration to issue a rule modernizing the standard maximum deposit insurance amount up to $5 million for noninterest-bearing transaction accounts.

“The Main Street Depositor Protection Act ensures banks of all sizes continue to play a fundamental role in driving economic growth in their communities,” said Congressman Frank D. Lucas. “I’m proud to support President Trump’s Main Street agenda by introducing a targeted bill that preserves Oklahoma banks’ competitiveness and enhances financial stability across the nation.”

“The banks that serve Main Street must have the same chance to succeed as the banks that serve Wall Street. This bipartisan, bicameral bill advances the Administration’s priority of preserving the central role of regional and community banks in the financial system of the future. It’s narrowly targeted to address a very specific concern that manifested itself during the Silicon Valley Bank collapse — a run on non-interest bearing transaction accounts typically used to make payrolls by small businesses that are very important customers for our local and regional banks.” said Senator Bill Hagerty.

This legislation is endorsed by:

• Independent Community Bankers of America
• Mid-Size Bank Coalition of America
• Community Bankers of Oklahoma
• Oklahoma Bankers Association

Independent Community Bankers of America President and CEO Rebeca Romero Rainey: “ICBA thanks Rep. Frank Lucas for advancing the deposit insurance debate by introducing the Main Street Depositor Protection Act. We appreciate Rep. Lucas’s efforts to promote balanced deposit insurance coverage across the banking industry to further strengthen the deposit insurance system and to better support small businesses that use transaction accounts for payroll and other recurring expenses while being mindful of costs on community banks.”

Mid-Size Bank Coalition of America Chairman Jim Ryan: “On behalf of mid-size banks across the country, I want to thank Congressman Lucas and Senators Hagerty and Alsobrooks for introducing this important legislation. This commonsense modernization bill will allow Main Street banks to serve their customers better and keep capital in all communities across the country. The Mid-Size Bank Coalition of America thanks Congressman Lucas [and Senators Hagerty and Alsobrooks] for his leadership and advocacy for Main Street businesses.” 

Oklahoma State Banking Commissioner Mick Thompson: “Oklahoma has seen firsthand the need for targeted deposit insurance reform. We are grateful for Congressman Lucas’ leadership in introducing the Main Street Depositor Protection Act that increases the resiliency of the financial system and keeps Oklahoma banks strong.”

Community Bankers Association of Oklahoma President and CEO Craig Buford: “The Community Bankers Association of Oklahoma (CBAO) strongly supports Congressman Frank Lucas introduction of legislation that will grant the FDIC authority to increase deposit insurance on non-interest-bearing accounts. Community banks are the lifeblood of the nation’s economy and this legislation will help the community banking industry remain competitive.”

The Oklahoma Bankers Association President and CEO Adrian Beverage: “The Oklahoma Bankers Association board of directors unanimously approved support for Rep. Lucas in his effort for reasonable deposit reform to protect and support community banks. The Main Street Depositor Protection Act is a good first step to achieve these goals. We thank Rep. Lucas for his efforts to address this issue and his unyielding support of community banks.”

BOK Financial CFO Marty Grunst: “This legislation represents a solid step forward in modernizing the deposit insurance framework—one that has not been meaningfully updated in 18 years. We support these reforms because they bring the system closer to the realities of the current operating environment.”

First United Bank & Trust Company CEO Greg Massey: “We appreciate Congress’s continued work on deposit reform as we work together to strengthen depositor protections, reinforce confidence in the banking system, and ensure community banks can continue reinvesting in our local communities to support economic growth. We are proud to support Congressman Lucas’s bill.”

BancFirst Corporation Chairman David Rainbolt: “Too Big To Fail has siphoned local deposits from smaller banks, draining our communities of essential lending capacity and economic opportunity. The Main Street Depositor Protection Act rightly strengthens the deposit framework to keep deposits in our neighborhoods and ensure we can continue to thrive. I thank Congressman Lucas for his unwavering support of Oklahoma’s banks.”

Full text of the legislation can be found here.

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