Qualified community banks could accept certain custodial deposits without triggering restrictions on brokered deposits under
Custodial deposit are accounts opened at a bank or credit union by a third party on behalf of an individual who owns the funds. Under current law, these accounts are treated as brokered deposits by the Federal Deposit Insurance Corporation if the third party is deemed to be a broker, subjecting them to capital and interest rate restrictions.
Banks that aren’t well-capitalized are prohibited from accepting brokered deposits, except for banks that are adequately capitalized and get a waiver from the FDIC. ...