US HB5317

Amends the Federal Deposit Insurance Act to exempt certain custodial deposits at eligible institutions from being classified as "brokered deposits," up to 20% of the institution's total liabilities

Applies only to insured depository institutions with less than $10 billion in total assets that are well capitalized and received a composite rating of 1, 2, or 3 on their most recent examination

Defines custodial deposits as those placed by fiduciaries such as insured depository institutions, trust companies, plan administrators, or investment advisors acting in a custodial capacity for the benefit of third parties

Restricts interest rates that covered institutions can pay on custodial deposits when not well capitalized, limiting rates to those comparable to similar deposits in the institution's normal market area or the national rate established by the FDIC