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Source: United States House of Representatives – Congressman French Hill (AR-02)

Hill Continues to Push for Community Banking Relief

Little Rock, December 15, 2020 Little Rock, Ark. — Today, Rep. French Hill (AR-02) issued the following statement after the Federal Deposit Insurance Corp. voted to finalize a regulation that narrows the scope of companies that are considered deposit brokers: “I appreciate the work the FDIC has done to modernize the way banks access deposits and the benefits they provide for their customers. FDIC’s release of this final rule shows their commitment to advancement in technology and the importance of allowing banks to be able to take advantage of these changes. Unfortunately, though, the rule doesn’t go quite far enough. I have long advocated that custodial deposits should not be considered brokered-deposits as evidenced by H.R. 4383, the Community Bank Deposit Access Act which I introduced with Rep. Charlie Crist. Unfortunately, this FDIC rule still does not make this clear. Custodial deposits empower community banks to attract the deposit funding needed to retain valuable local customer relationships with loans that serve the needs of communities like mine in central Arkansas. I urge the FDIC to make this clarification.” MIL OSI USA News