Press Releases

House Committee on Financial Services Chairman French Hill (AR-02) introduced the Community Banks Deposit Access Act of 2025 to provide well-capitalized community banks the ability to attract stable, low-cost funding through custodial deposits and better serve American families and small businesses. By excluding qualifying custodial deposits from brokered deposit rules, the legislation will help community banks maintain lower funding costs, expand lending opportunities, and serve their communities.

"As a former community banker, I’ve seen first-hand how outdated regulations place community banks at a disadvantage, stifling their ability to serve as economic engines of growth in our cities and towns,” said Chairman Hill. “My common-sense bill would help community banks compete more effectively and provide them greater flexibility to serve their customers all while maintaining strong safety standards.”

Further Background:

• This bill amends the Federal Deposit Insurance Act to create a limited exception for certain custodial deposits at eligible institutions. Under this measure, these deposits placed by trusted entities like banks, trust companies, or plan administrators would not be classified as brokered deposits if they do not exceed 20% of the institution’s total liabilities. Eligible institutions include those with less than $10 billion in assets, those that are well-rated and well-capitalized, or others that obtain a waiver.