House · HR 5317 · 119th Congress
Community Bank Deposit Access Act of 2025
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Summary
This bill changes how certain deposits at small banks are labeled under federal law. Banks with less than $10 billion in assets can now accept custodial deposits without those funds being treated as brokered deposits, up to 20% of the bank's total debts. The bank must be healthy and well-funded to qualify.
In Favor
Many small community banks struggle to attract deposits because of strict rules on brokered deposits. This bill lets healthy small banks accept more custodial funds without extra oversight. That gives local banks more money to lend to families and small businesses in their communities.
Against
Brokered deposit rules exist to stop struggling banks from taking on risky, short-term money. Letting banks accept more of these funds under a new label could increase their exposure if deposits leave quickly. Taxpayers ultimately back federal deposit insurance, so loosened rules carry real financial risk.
Additional Considerations
Purpose & Problem
Is the problem real and worth federal action?
This bill changes how certain deposits held by banks in a trustee or caretaker role are labeled under federal banking law. It targets a rule that places extra oversight on banks accepting deposits arranged through outside parties.
Scope & Related Provisions
Does it stay focused, or carry unrelated add-ons?
The bill mostly stays on topic, addressing deposit rules and interest rate limits for smaller banks. Section 3 adds one unrelated item: it reduces a Federal Reserve surplus fund by $4 million, effective September 2036.
Who Is Affected
Who benefits, and who bears the cost?
Banks with less than $10 billion in assets may face fewer restrictions on accepting certain deposits. Retirement plans and trust accounts held at those banks may be affected, and the Federal Reserve surplus fund bears a small reduction.
Cost & Funding
Is it affordable and responsibly funded?
The bill does not appropriate federal spending or charge new fees. Section 3 reduces a Federal Reserve surplus fund by $4 million, effective September 1, 2036. Agencies would need to write and enforce updated rules under the new deposit definitions.
Risks & Implementation
What could go wrong in practice?
Banks must stay well-capitalized and maintain a minimum soundness rating to use the new rule, so losing that status removes the benefit. The 20 percent cap on qualifying deposits requires ongoing tracking, which places a monitoring duty on each participating bank.
For the actual bill text, see congress.gov.
AI-generated · Published 5/29/2026