This bill mandates that State-chartered financial institutions maintain a reserve balance that is at least five times the total value of thefts, cyber thefts, fraud, and robberies reported in the previous year, in addition to any existing reserve or minimum capital requirements. The intent is to ensure that these institutions have sufficient funds to return customers' lost or stolen money while they investigate and recover those losses.

Furthermore, the bill requires each financial institution to conduct an annual audit of its losses related to theft, cyber theft, fraud, and robbery from the previous year. The findings of this audit must be reported to the Commissioner of Banking and Insurance, ensuring transparency and accountability in the institutions' financial practices. The bill is set to take effect one year after its enactment.