Sen. J.D. Vance (D-Ohio) introduced legislation to level the playing field in the banking system, enabling community and small regional banks to better compete against too big-to-fail financial institutions.
The Payroll Guarantee Act, submitted on July 20, would extend unlimited deposit insurance to all non-interest-bearing transaction accounts. The bill would mainly target business payroll and operating accounts and apply to banks with a maximum of $225 billion in assets.
Moreover, the bill hints that funding the program would not involve fees charged to small and regional entities.
“Regional and community banks all over Ohio are suffering from the unfair advantage held by their larger counterparts,” said Mr. Vance in a statement….