Minority Depository Institution and Community Bank Deposit Access Act of 2022

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. 1. Short title This Act may be cited as the Minority Depository Institution and Community Bank Deposit Access Act of 2022 2. Limited exception for custodial deposits (a) In general Section 29 of the Federal Deposit Insurance Act ( 12 U.S.C. 1831f (j) Limited exception for custodial deposits (1) In general Custodial deposits of an eligible institution shall not be considered to be funds obtained, directly or indirectly, by or through a deposit broker to the extent that the total amount of such custodial deposits does not exceed an amount equal to 10 percent of the total liabilities of the eligible institution. (2) Definitions In this subsection: (A) Custodial deposit The term custodial deposit (i) An insured depository institution serving as agent, trustee, or custodian. (ii) A trust entity controlled by an insured depository institution serving as agent, trustee, or custodian. (iii) A State-chartered trust company serving as agent, trustee, or custodian. (iv) A plan administrator or investment advisor, acting in a formal custodial or fiduciary capacity for the benefit of a plan, as defined in section 3 of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1002 (B) Eligible institution The term eligible institution (i) (I) has less than $5,000,000,000 in total assets as reported on the consolidated report of condition and income as reported quarterly to the appropriate Federal banking agency; or (II) (aa) is a community development financial institution, as defined in section 103 of the Community Development Banking and Financial Institutions Act of 1994 ( 12 U.S.C. 4702 (bb) is a minority depository institution, as defined in section 308 of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 ( 12 U.S.C. 1463 (ii) (I) when most recently examined under section 10(d) was found to have a composite condition of outstanding or good; and (II) is well capitalized; or (iii) has obtained a waiver pursuant to subsection (c). (C) Plan administrator The term plan administrator administrator 29 U.S.C. 1002 (D) Well capitalized The term well capitalized . (b) Interest rate restriction Section 29 of the Federal Deposit Insurance Act ( 12 U.S.C. 1831f (e) Restriction on interest rate paid (1) Definitions In this subsection— (A) the terms custodial deposit eligible institution well capitalized (B) the term covered insured depository institution (i) under subsection (c) or (d), accepts funds obtained, directly or indirectly, by or through a deposit broker; or (ii) while acting as an eligible institution under subsection (j), accepts custodial deposits while not well capitalized. (2) Prohibition A covered insured depository institution may not pay a rate of interest on funds that, under subsection (c) or (d), are obtained, directly or indirectly, by or through a deposit broker or on custodial deposits that are accepted while not well capitalized that, at the time the funds or custodial deposits are accepted, significantly exceeds the limit set forth in paragraph (3). (3) Limit on interest rates The limit on the rate of interest referred to in paragraph (2) shall be not greater than— (A) the rate paid on deposits of similar maturity in the normal market area of the covered insured depository institution for deposits accepted in the normal market area of the covered insured depository institution; or (B) the national rate paid on deposits of comparable maturity, as established by the Corporation, for deposits accepted outside the normal market area of the covered insured depository institution. . 3. Community development revolving loan fund for credit unions Section 130 of the Federal Credit Union Act ( 12 U.S.C. 1772c–1 (c) Loans (1) In general The Board may require that any loans made from the Fund be matched by increased shares in the borrower credit union. (2) Eligibility Only low-income credit unions and minority depository institutions that are federally insured credit unions are eligible for loans made from the Fund. .

Summary: Minority Depository Institution and Community Bank Deposit Access Act of 2022 This bill specifies that certain custodial deposits at eligible institutions shall not be considered to be brokered deposits, which are subject to additional regulatory requirements, including those related to liquidity. The bill generally defines a custodial deposit as a deposit made by a certain entity serving as an agent, trustee, or custodian at an insured depository institution for the purpose of providing deposit insurance for the benefit of a third party. Among other requirements, the bill provides that an eligible institution includes small depository institutions, community development financial institutions, and minority depository institutions. Additionally, the bill specifies that only low-income credit unions and minority depository institutions that are federally insured credit unions are eligible for certain community development revolving loans.