The purpose of the Keeping Deposits Local Act is to change how certain deposits are treated under the Federal Deposit Insurance Act. Specifically, it aims to allow banks to count more of their reciprocal deposits—money they hold on behalf of other banks—without classifying them as funds obtained through deposit brokers. This change is intended to support local banks and help them better serve their communities. Key provisions of the Act include adjustments to the amount of reciprocal deposits that can be excluded from being classified as brokered funds.