Impact on Banks and Communities By expanding the reciprocal deposit limit, the new law gives banks greater flexibility to strengthen their balance sheets and retain high-value customer relationships. In practical terms, a bank can now hold substantially larger volumes of reciprocal deposits as nonbrokered. This has direct implications for local economies. Reciprocal deposits are widely understood to help keep funds within the communities where they originate, supporting lending to small businesses, homeowners and local organizations. Lawmakers have emphasized that the goal of the legislation is to keep deposits local, and the new law spurs banks — particularly community and regional institutions — to grow local depositor relationships and deploy more capital within their markets rather than passing on large deposits and losing them to larger institutions or alternative cash management solutions. A Shift Toward Flexibility and Resilience The move to a tiered system reflects a broader regulatory shift toward aligning deposit rules with the realities of modern banking. The prior cap was set at the same limit for all banks regardless of size, while the new framework scales with institutions’ balance sheets. As a result, banks can now use reciprocal deposits at a scale proportionate to their total liabilities, protecting more customers’ large cash balances, improving their competitiveness, and aiding liquidity management. The law also extends eligibility to a wider range of well-capitalized banks, further broadening access to this funding source. The Bottom Line The 21st Century ROAD to Housing Act is a considerable step forward in deposit regulation. By expanding the amount of reciprocal deposits that can be treated as nonbrokered, the law strengthens banks’ ability, in greater volume than before, to: • Attract and retain large, safety-conscious depositors • Enhance funding stability • Support increased lending in local communities At a time when deposit competition remains intense and customers are increasingly focused on safety, reciprocal deposit services have become a critical tool for banks. This legislation ensures they can use that tool more fully — unlocking greater flexibility, stronger relationships and more capital directed toward local economic growth. Scan the QR code to see more on this transformative law and to use the calculator to determine the amount of reciprocal deposits that your bank can count as nonbrokered. https://hub.intrafi.com/reciprocal-legislation-2026 As the inventor and largest provider of reciprocal deposits, and with the highest per-depositor and per-bank capacity, IntraFi stands ready to help banks of all sizes use reciprocal deposits to strengthen their balance sheet and grow local, loyal customer relationships. Deposit placement through ICS and CDARS is subject to the terms, conditions and disclosures in applicable agreements. IntraFi is not an FDIC-insured bank, and deposit insurance covers the failure of an insured bank. A list identifying IntraFi network banks appears at intrafi.com/network-banks. Certain conditions must be satisfied for “pass-through” FDIC deposit insurance coverage to apply. The Show-Me Banker Magazine | 33
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