Community Bank Deposit Access Act of 2025
Congress Moves to Let Some Community Banks Count More Custodial Deposits as Non-Brokered Funds
Stalled
No legislative action in over 90 days.
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
Placed on the Union Calendar, Calendar No. 321.
The bill is now on the schedule for the full chamber to consider. It's in line for debate and a vote.
Reported (Amended) by the Committee on Financial Services. H. Rept. 119-369.
Ordered to be Reported (Amended) by the Yeas and Nays: 48 - 2.
The committee approved this bill and is sending it to the full chamber for a vote. This is a significant step — most bills never get this far.
Committee Consideration and Mark-up Session Held
Referred to the House Committee on Financial Services.
Votes
No votes have been recorded for this legislation yet.
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.