The purpose of this legislation, known as the Keeping Deposits Local Act, is to change how certain deposits are classified under the Federal Deposit Insurance Act. Specifically, it aims to adjust the rules regarding reciprocal deposits, which are funds that banks can exchange with one another to increase their deposit insurance coverage. The key provisions of this act modify the amount of reciprocal deposits that will not be counted as funds obtained through a deposit broker. This change is structured based on the total liabilities of the bank involved.