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Easier Access to Custodial Deposits for Community Banks.

This law helps small banks (under $10 billion in assets) accept large custodial deposits, such as funds from retirement plans, without these funds being classified as restricted "brokered deposits." The goal is to enhance the financial stability and competitiveness of community banks. For citizens, this supports the health of local financial institutions where their savings and retirement funds might be held.
Key points
Small, financially healthy banks can now more easily accept large deposits (e.g., from retirement funds or trusts) without facing strict regulatory limits.
A cap is set: these deposits cannot exceed 20% of the bank's total liabilities, ensuring prudent risk management.
If a bank is financially weak, the law restricts the interest rate it can pay on these specific deposits, preventing risky behavior and protecting overall deposit safety.
article Official text account_balance Process page
Placed on Calendar
Citizen Poll
No votes cast
Additional Information
Print number: 119_HR_5317
Sponsor: Rep. Hill, J. French [R-AR-2]
Process start date: 2025-09-11
Lustra uses Artificial Intelligence. Verify details in source documents.
Summarized by: gemini-2.5-flash-preview-09-2025
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Community Bank Deposit Access Act of 2025

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 119_HR_5317.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2025-09-11.

What are the main provisions?

Key points include:

  • Small, financially healthy banks can now more easily accept large deposits (e.g., from retirement funds or trusts) without facing strict regulatory limits.
  • A cap is set: these deposits cannot exceed 20% of the bank's total liabilities, ensuring prudent risk management.
  • If a bank is financially weak, the law restricts the interest rate it can pay on these specific deposits, preventing risky behavior and protecting overall deposit safety.
What is the specific legal status?

The current status is Placed on Calendar.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Hill, J. French [R-AR-2].

What is the latest detailed status?

The latest detailed status is: Placed on the Union Calendar, Calendar No. 321.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-23.

CATEGORIES

Economy