Community Bank Deposit Access Act of 2025
Last recorded step: House, May 21, 2026.
Nothing scheduled on the calendars we hold.
This bill would exempt certain custodial deposits at small community banks from being classified and regulated as brokered deposits.
This summary may be out of date
Last regenerated The bill has had legislative action since.
What it does
This bill would reclassify certain custodial deposits at smaller financial institutions so they are no longer treated as brokered deposits. Specifically, insured depository institutions with less than $10 billion in total assets could exclude these funds from brokered deposit oversight if the deposits remain below 20% of the institution's total liabilities and the bank meets specific capital and soundness requirements. The bill also proposes applying standard interest rate limits to these institutions if they are not considered well-capitalized.
Who is affected
This bill affects insured depository institutions with less than $10 billion in total assets that hold custodial deposits. It also impacts the Federal Deposit Insurance Corporation, which is responsible for issuing waivers regarding the classification of these deposits. Additionally, the legislation affects brokers who place funds on behalf of clients in these institutions for interest rate maximization and insurance purposes.
Key provisions
- Reclassification of certain custodial deposits. The bill specifies that custodial deposits held at insured depository institutions with less than $10 billion in total assets are no longer classified as brokered deposits, provided these deposits do not exceed 20% of the institution’s total liabilities.
- Capitalization and soundness requirements. To qualify for the deposit reclassification, an institution must be well-capitalized and maintain a specific minimum soundness rating, or otherwise obtain a waiver from the Federal Deposit Insurance Corporation.
- Application of interest rate limits. The legislation extends existing interest rate limits, which currently apply to institutions that are not well-capitalized, to similar institutions that accept custodial deposits.
Fiscal impact
Not applicable: No CBO cost estimate available
Effective dates
Not applicable: Official Summary does not address effective dates
Relationship to existing law
The bill modifies existing federal banking regulations regarding brokered deposits by exempting certain custodial deposits at smaller insured depository institutions from that classification. It also extends current interest rate limits, which typically apply to institutions that are not well-capitalized, to similar institutions that accept these custodial deposits.
Stated purpose
The bill aims to modify federal banking regulations by reclassifying certain custodial deposits at smaller financial institutions so they are no longer treated as brokered deposits, provided the institutions meet specific asset, liability, and capitalization requirements.