21st Century ROAD to Housing Act | NBID
Congress passed the 21st Century ROAD to Housing Act with landmark provisions for reciprocal and custodial deposits.
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"The value of a reciprocal network is the banks themselves. Now, member banks can benefit from the network they power."
Gene Ludwig
27th Comptroller of the Currency, NBID Board Director and Chairman
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01 · Reciprocal Deposits
Substantially Expanded
The Act substantially expands the reciprocal deposits a bank can hold as non-brokered funding through a tiered schedule, replacing the flat cap. Banks now access deposits up to 50% of total liabilities, with a $1B bank moving from $200M to $500M and a $10B bank from $2B to $4.1B.
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02 · Custodial Deposits
Now Core Funding
For the first time, well-capitalized banks under $10B can treat custodial deposits as core, non-brokered funding up to 20% of total liabilities. NBID's structure was designed precisely for this opportunity.
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03 · Bank-Owned
Core Infrastructure
Reciprocal deposits are now established as foundational banking infrastructure supporting the competitiveness, scale, and stability of the US banking system. Congress's overwhelming vote (85-5 Senate, 358-32 House) confirms the critical infrastructure should be owned by those who use it.
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NBID LLC is not a bank. Deposit insurance covers the failure of insured institutions, not NBID. Deposits placed at FDIC-insured network institutions are eligible for pass-through insurance up to $250,000 per institution. A list of participating banks appears at nbid.com/bank-list.
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