Community Bank Deposit Access Act of 2025
Key claim: The Community Bank Deposit Access Act of 2025 (HR5317) would stop treating certain custodial deposits at well-capitalized insured banks under $10 billion in assets as brokered deposits when those deposits are no more than 20% of liabilities, while applying existing interest-rate limits to non-well-capitalized institutions that accept such deposits.
Abstract
(HR5317 · 119th Congress) Community Bank Deposit Access Act of 2025 This bill changes the treatment of certain types of deposits so they are no longer classified as brokered deposits. Brokered deposits are funds placed by a broker on behalf of a client in a depository institution to maximize interest rates and for depository insurance purposes. Currently, institutions that accept brokered deposits may be subject to additional oversight. In particular, under the bill, custodial deposits at insured depository institutions with less than $10 billion in total assets shall not be treated as brokered deposits if the deposits do not exceed 20% of the institution’s liabilities. The institution must be well-capitalized and have a specified minimum soundness rating, or be in possession of a waiver from the Federal Deposit Insurance Corporation. The bill also generally applies existing interest rate limits applicable to institutions that are not well-capitalized to similar institutions that accept custodial deposits. Latest action (2026-05-21): Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
Why this matters
Brokered-deposit classification triggers higher FDIC assessment rates, interest-rate caps, and supervisory scrutiny, so reclassifying custodial deposits at small community banks would materially expand their funding flexibility and reduce compliance costs. For consumers and fintech partners routing deposits through community banks, the bill signals a narrower brokered-deposit perimeter tied to bank size, capital, and CAMELS-style soundness rather than deposit sourcing alone. Status: introduced in the 119th Congress; not enacted.