Bill > HR5317

This bill, titled the Community Bank Deposit Access Act of 2025, amends the Federal Deposit Insurance Act to create a limited exception for certain custodial deposits held by eligible community banks. Specifically, it clarifies that these custodial deposits, which are held by institutions like banks, trust companies, or plan administrators acting in a formal custodial or fiduciary capacity for the benefit of a third party, will not be considered funds obtained through a "deposit broker" if they do not exceed 20% of the bank's total liabilities. A "deposit broker" is generally an entity that solicits and accepts deposits from the public on behalf of another entity. This exception applies to "eligible institutions," which are insured depository institutions with less than $10 billion in total assets that are considered "well capitalized" (meaning they meet specific financial strength requirements) or have received a waiver. The bill also includes a provision that restricts the interest rates a "covered insured depository institution" (an eligible institution that is not well capitalized) can pay on custodial deposits, preventing them from significantly exceeding market rates for similar deposits. Additionally, the bill makes a minor adjustment to the Federal Reserve Act concerning a discretionary surplus fund, reducing a specific dollar amount by $4 million, effective in 2036.