Community Bank Deposit Access Act of 2025
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed House
- Passed Senate
- To President
- Became Law
Overview
This bill, the Community Bank Deposit Access Act of 2025, aims to modify how certain types of deposits held by banks are classified. Specifically, it creates an exception for ‘custodial deposits’ – those held by insured banks for third parties – up to 20% of the bank’s liabilities, provided the bank meets specific capital and soundness requirements. The bill also restricts interest rates paid on these deposits to align with market rates or national rates, depending on the bank’s location.
Key provisions
- Creates an exception for custodial deposits of eligible institutions (under $10 billion in assets) that do not exceed 20% of their liabilities.
- Defines ‘custodial deposit’ to include deposits held by insured institutions acting as agents, trustees, or custodians for third parties.
- Establishes eligibility requirements for ‘eligible institutions,’ including well-capitalization and a specific soundness rating.
- Limits interest rates paid on custodial deposits to market rates or national rates.
- Applies existing interest rate limits to institutions that are not well-capitalized.
- Allows eligible institutions to obtain a waiver from the FDIC.
- Defines ‘well capitalized’ based on existing regulatory standards.
- Specifies that custodial deposits are not considered funds obtained through deposit brokers.
Who is affected
- Insured Depository Institutions
Bill text
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Sponsors
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1 on record
Primary sponsor
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