Community Bank Deposit Access Act of 2025
Congress Moves to Let Some Community Banks Count More Custodial Deposits as Non-Brokered Funds
Legislative Progress
Key Points
- Lets certain smaller, well-capitalized banks treat some custodial deposits as regular deposits, not “brokered” money.
- Applies to banks under $10 billion in assets, and generally only if exams rate them in good shape and they meet “well capitalized” standards.
- Sets a cap: these custodial deposits can only get this special treatment up to 20% of the bank’s total liabilities.
- Defines custodial deposits as money placed through a trustee/custodian setup (like for retirement plans) mainly to keep deposit insurance for someone else’s benefit.
- Adds a limit on how much interest a bank can pay on these custodial deposits if it later is no longer well capitalized, to discourage risky “rate chasing.”
Impact Analysis
Personal Impact
How this policy affects specific groups of people
Milestones
Motion to reconsider laid on the table Agreed to without objection.
On motion to suspend the rules and pass the bill, as amended Agreed to by the Yeas and Nays: (2/3 required): 393 - 16 (Roll no. 179).
The House fast-tracked this bill — limited debate, no amendments allowed, but needs two-thirds support to pass.
Passed/agreed to in House: On motion to suspend the rules and pass the bill, as amended Agreed to by the Yeas and Nays: (2/3 required): 393 - 16 (Roll no. 179).
The House fast-tracked this bill — limited debate, no amendments allowed, but needs two-thirds support to pass.
Considered as unfinished business.
At the conclusion of debate, the Yeas and Nays were demanded and ordered. Pursuant to the provisions of clause 8, rule XX, the Chair announced that further proceedings on the motion would be postponed.
Vote Results
1 voteOn Motion to Suspend the Rules and Pass, as Amended
Related News
5 articles
House FSC passes five bills supported by community banking advocates
Recaps House Financial Services Committee action; notes H.R. 5317 passed 49-2 and would let qualifying community banks treat certain custodial deposits as non-brokered up to 20% of liabilities.
ICBA-supported bills slated for House committee markup today
Preview of House Financial Services Committee markup lists H.R. 5317 and summarizes its custodial-deposit exception from brokered-deposit treatment (20% of liabilities cap).
American Fintech Council (AFC) Applauds Introduction of the Community Bank Deposit Access Act
Industry group statement praising advancement of H.R. 5317; frames it as supporting bank–fintech custodial deposit arrangements by distinguishing them from brokered deposits.
Source Information
Document Type
Congressional Bill
Official Title
Community Bank Deposit Access Act of 2025
Data Sources
Sponsor
Analysis generated by AI. Always verify with official sources.