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 maintain minimum reserve balances equal to five times the previous year's total losses from fraud, theft, cyber theft, or robbery reported to the institution. It mandates annual audits of these losses and requires institutions to report audit findings to the Banking Commissioner to verify sufficient reserves for returning customer losses during investigations. The reserves must cover both the stolen funds and related damages. This applies specifically to institutions operating under New Jersey law, not federal banks.