Depositor Protection Act of 2023

The Depositor Protection Act of 2023 increases federal deposit insurance coverage for noninterest-bearing transaction accounts to $100 million per depositor at insured banks. Smaller banks with less than $250 billion in total assets may opt out of this higher coverage without facing additional fees. The enhanced coverage is temporary, reverting to standard limits after two years. The bill also adjusts reciprocal deposit limits (raising the cap from $5 billion to $10 billion) and modifies bank resolution procedures to address secondary costs to the Deposit Insurance Fund.