Community Bank Deposit Access Act of 2025

The Community Bank Deposit Access Act of 2025 would change how certain deposits are classified at smaller banks. Specifically, it would allow custodial deposits at banks with less than $10 billion in assets to no longer be treated as brokered deposits, provided these deposits do not exceed 20% of the bank's liabilities and the bank meets certain financial health standards or obtains a waiver from the Federal Deposit Insurance Corporation. This reclassification would reduce the additional regulatory oversight that banks currently face when accepting brokered deposits.

If enacted, the bill would also apply existing interest rate limits to banks that accept custodial deposits. For everyday citizens, this could mean that smaller community banks would have more flexibility in how they manage deposits and set interest rates, potentially allowing them to compete more effectively with larger financial institutions. However, the practical impact on consumers would depend on how individual banks choose to use this additional flexibility. The bill has been approved by the House Financial Services Committee and is eligible for a floor vote, though it has not yet become law.