H.R. 5317

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.