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.
Status:
Placed on Calendar
Civic Will
Why does your vote on bills matter?
It creates raw, undeniable proof. Civic Will provides the permanent data to verify the Government's loyalty towards its citizens
(explained here).
Start recording it now.