Exempts certain custodial deposits at smaller, well-capitalized banks from being treated as brokered deposits, up to 20 percent of the bank's total liabilities.

• Excludes custodial deposits at eligible institutions from brokered deposit treatment, up to 20 percent of the institution's total liabilities.
• Eligible institutions have under $10 billion in total assets, a composite examination rating of 1, 2, or 3, and are well capitalized or hold a waiver.
• Defines custodial deposits as deposits held by a bank, trust company, or plan administrator or investment advisor acting in a formal custodial or fiduciary capacity for a third party.
• Caps interest rates on custodial deposits accepted by covered institutions that are not well capitalized, at local market rates or at the national rate set by the FDIC for deposits outside the local market.
• Reduces the dollar amount in the Federal Reserve Act's discretionary surplus fund provision by $4,000,000, effective September 1, 2036.

• Financial Services Committee (House)
• Banking, Housing, and Urban Affairs Committee (Senate)

Finance and Financial Sector