To amend the Federal Deposit Insurance Act to ensure that certain custodial deposits of well capitalized insured depository institutions are not considered to be funds obtained by or through deposit brokers, and for other purposes.
Legislative Progress
ReportedReported with an amendment, committed to the Committee of the …
Mr. Hill of Arkansas introduced the following bill; which was …
Summary
What This Bill Does
Creates exception for custodial deposits (held for third parties in fiduciary capacity) at banks under $10 billion from being classified as risky brokered deposits. Allows up to 20% of liabilities in such deposits.
Who Benefits and How
Community banks can hold more custodial deposits without regulatory penalty. Trust companies and plan administrators have more banking options. Retirement plans benefit from easier deposit placement.
Who Bears the Burden and How
FDIC loses some oversight of deposit concentrations at small banks. Large banks do not receive this relief. Marginally increased risk to deposit insurance fund.
Key Provisions
- Exempts up to 20% of liabilities in custodial deposits from brokered rules
- Applies only to banks under $10 billion in assets
- Covers deposits from trustees, custodians, and plan administrators
Evidence Chain:
This summary is derived from the structured analysis below. See "Detailed Analysis" for per-title beneficiaries/burden bearers with clause-level evidence links.
Primary Purpose
Exempts custodial deposits at small banks from brokered deposit restrictions up to 20% of liabilities
Policy Domains
Legislative Strategy
"Ease brokered deposit rules for community bank custodial services"
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
Key Definitions
Terms defined in this bill
deposit held in fiduciary capacity for third party benefit, not for fee from bank
bank under $10 billion accepting custodial deposits
We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.
Learn more about our methodology