What does Preamble of Community Bank Deposit Access Act of 2025 do?

This bill amends the Federal Deposit Insurance Act. The amendment aims to ensure that certain custodial deposits of well-capitalized insured depository institutions are not considered funds obtained by or through deposit brokers. The bill includes provisions for other purposes, though these are not specified in the provided text.

What does SHORT TITLE. of Community Bank Deposit Access Act of 2025 do?

This bill is formally titled the Community Bank Deposit Access Act of 2025.

What does LIMITED EXCEPTION FOR CUSTODIAL DEPOSITS. of Community Bank Deposit Access Act of 2025 do?

This section amends the Federal Deposit Insurance Act to create a limited exception for custodial deposits. An eligible institution can have custodial deposits up to 20% of its total liabilities without those deposits being considered funds obtained through a deposit broker. An 'eligible institution' is an insured depository institution with less than $10 billion in assets that meets certain financial rating and capitalization criteria, or has obtained a waiver. The definition of 'custodial deposit' includes deposits made by certain entities (insured institutions, trust entities, trust companies, plan administrators, investment advisors) acting in a custodial or fiduciary capacity for a third party. The Act restricts the interest rates that 'covered insured depository institutions' (those not well-capitalized) can pay on custodial deposits. The interest rate limit is either the rate paid on similar deposits in the institution's market area or a national rate established by the Corporation.

What does DISCRETIONARY SURPLUS FUND. of Community Bank Deposit Access Act of 2025 do?

This section modifies the dollar amount specified under section 7(a)(3)(A) of the Federal Reserve Act. The dollar amount is reduced by $4,000,000. The amendment will take effect on September 1, 2036.

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Community Bank Deposit Access Act of 2025

Last updated: 5/21/2026 · Introduced: 9/11/2025

Author: J. Hill (R-AR)

TL;DR (AI)

The bill creates a limited exception for custodial deposits, allowing eligible institutions to have up to 20% of their total liabilities in custodial deposits without being considered funds obtained through a deposit broker.
The Act restricts the interest rates that covered insured depository institutions can pay on custodial deposits, limiting them to either the rate paid on similar deposits in the institution's market area or a national rate established by the Corporation.
The bill modifies the Federal Reserve Act by reducing a specified dollar amount by $4,000,000, with the amendment taking effect on September 1, 2036.

119th Congresspassed houseHR. 6955(In Committee)Official page

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Other Sections

Includes provisions on preamble, short title., and 2 more.

4 sections

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