Main Street Act

This Act may be cited as the Main Street Capital Access Act or the Main Street Act.
The table of contents for this Act is as follows:
Notwithstanding any other provision of law, the Federal banking agencies shall issue rules that provide for a 3-year phase-in period for a depository institution or depository institution holding company to meet any Federal capital requirements that would otherwise be applicable to the depository institution or depository institution holding company, beginning on—
the date on which the depository institution became an insured depository institution; or
in the case of a depository institution holding company, the date on which the depository institution subsidiary of the depository institution holding company became an insured depository institution.
During the 3-year period beginning on the date on which a depository institution became an insured depository institution, if, as a condition of approval, the appropriate Federal banking agency imposes a requirement to obtain prior approval before deviating from a business plan, the insured depository institution or its depository institution holding company may request to deviate materially from a business plan that has been approved by the appropriate Federal banking agency by submitting a request to such agency pursuant to this section.
The appropriate Federal banking agency shall, not later than the end of the 30-day period beginning on the receipt of a request under paragraph (1)—
approve, conditionally approve, or deny such request; and
notify the applicant of such decision and, if the agency denies the request—
provide the applicant with the reason for such denial; and
suggest changes to the request that, if adopted, would allow the agency to approve such request.
If an appropriate Federal banking agency fails to approve or deny a request within the 30-day period required under paragraph (2), such request shall be deemed to be approved.
During the 3-year period beginning on the date on which a rural depository institution became an insured depository institution, the Community Bank Leverage Ratio for the rural community bank shall be the lesser of—
the Community Bank Leverage Ratio adopted by the Federal banking agencies pursuant to section 201(b)(1) of the Economic Growth, Regulatory Relief, and Consumer Protection Act (12 U.S.C. 5371 note); or
7.5 percent.
The Federal banking agencies shall issue rules to phase-in the Community Bank Leverage Ratio described under paragraph (1) with respect to a rural depository institution by setting lower Community Bank Leverage Ratio percentages during the first 2 years of the 3-year period described under paragraph (1).
In this subsection:
The term Community Bank Leverage Ratio has the meaning given that term under section 201(a) of the Economic Growth, Regulatory Relief, and Consumer Protection Act (12 U.S.C. 5371 note).
The term rural area means—
a county that is neither in a metropolitan statistical area nor in a micropolitan statistical area that is adjacent to a metropolitan statistical area, as those terms are defined by the Office of Management and Budget and as they are applied under applicable Urban Influence Codes, established by the Department of Agriculture’s Economic Research Service; or
a census block that is not in an urban area, as defined by the Bureau of the Census using the latest decennial census of the United States.
The term rural depository institution means a depository institution—
with total consolidated assets of less than $10,000,000,000; and
located in a rural area.
Section 5(c) of the Home Owners’ Loan Act (12 U.S.C. 1464(c)) is amended—
in paragraph (1), by adding at the end the following:
Secured or unsecured loans for agricultural purposes.
in paragraph (2)(A), by striking business, or agricultural and inserting or business.
The Federal banking agencies shall, jointly, carry out a study on—
the principal causes for the low number of de novo insured depository institutions in the 10-year period ending on the date of enactment of this Act; and
ways to promote more de novo insured depository institutions in areas currently underserved by insured depository institutions.
Not later than the end of the 1-year period beginning on the date of enactment of this Act, the Federal banking agencies shall, jointly, issue a report to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate containing all findings and determinations made in carrying out the study required under paragraph (1).
In this section, the terms appropriate Federal banking agency, depository institution, depository institution holding company, Federal banking agency, and insured depository institution have the meaning given those terms, respectively, under section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813).
The Comptroller of the Currency shall publish an annual report that includes the following, or with respect to any equivalent procedure used by the Office of the Comptroller of the Currency includes the following:
The number of applications for a national bank or Federal savings association charter received, approved on a preliminary basis, approved on a final basis, denied, withdrawn, inactive, expired, mooted, returned, returned pending resubmission, or otherwise dispositioned.
The mean and median times for preliminary approval of such applications.
The mean and median times for final approval of such applications.
To the extent practicable, common reasons leading to the denial, withdrawal, or expiration of preliminary approval of such applications.
The National Credit Union Administration shall publish an annual report that includes the following, or with respect to any equivalent procedure used by the Board includes the following:
The number of Federal credit union charter applications received, approved on a final basis, denied, withdrawn, inactive, or returned pending resubmission.
The mean and median times for final approval of such applications.
To the extent practicable, common reasons leading to application denial, withdrawal, inactivity, or to applications being returned for resubmission.
The Board of Governors of the Federal Reserve System shall publish an annual report that includes the following, or with respect to any equivalent procedure used by the Board of Governors includes the following:
The number of applications to become a top-tier depository institution holding company received, approved on a preliminary basis, approved on a final basis, denied, withdrawn, inactive, expired, mooted, returned, returned pending resubmission, or otherwise dispositioned.
The mean and median times to approve such applications.
To the extent practicable, common reasons leading to denial or withdrawal of such applications.
In this subsection, the term top-tier depository institution holding company means a depository institution holding company (as defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813)) that is not controlled by any other depository institution holding company.
The Federal Deposit Insurance Corporation shall publish an annual report that includes the following, or with respect to any equivalent procedure used by the Corporation includes the following:
The number of applications for deposit insurance received, approved on a preliminary basis, approved on a final basis, denied, withdrawn, inactive, expired, mooted, returned, returned pending resubmission, or otherwise dispositioned.
The mean and median times to approve such applications.
To the extent practicable, common reasons leading to denial or withdrawal of such applications.
The Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and the National Credit Union Administration Board shall, jointly, and in consultation with State banking regulators and State credit union regulators, publish an annual report that includes the following, or with respect to any equivalent procedure used by such agencies includes the following:
The number of applications for a State depository institution charter received, approved on a preliminary basis, approved on a final basis, denied, withdrawn, inactive, expired, mooted, returned, returned pending resubmission, or otherwise dispositioned.
The mean and median times to approve such applications, with times for each State shown separately.
To the extent practicable, common reasons leading to denial or withdrawal of such applications.
In this subsection:
The term State means any State of the United States, the District of Columbia, and any territory of the United States.
The term State depository institution means—
a State depository institution, as defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813); and
a State credit union, as defined in section 101 of the Federal Credit Union Act (12 U.S.C. 1752).
The Federal banking agencies shall, jointly, carry out a study—
to identify methods to improve the growth, capital adequacy, and profitability of depository institutions in the United States that primarily serve rural areas; and
to identify Federal statutes (other than appropriations Acts) or regulations of the Federal banking agencies that limit—
the methods identified under paragraph (1); or
the establishment of de novo depository institutions in rural areas.
Not later than 1 year after the date of enactment of this Act, the Federal banking agencies shall, jointly, issue a report to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate containing all findings and determinations made in carrying out the study required under subsection (a).
The National Credit Union Administration shall carry out a study—
to identify methods to improve the growth, capital adequacy, and profitability of insured credit unions in the United States that primarily serve rural areas; and
to identify Federal statutes (other than appropriations Acts) or regulations of the National Credit Union Administration that limit—
the methods identified under paragraph (1); or
the establishment of de novo insured credit unions in rural areas.
Not later than 1 year after the date of enactment of this Act, the National Credit Union Administration shall issue a report to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate containing all findings and determinations made in carrying out the study required under subsection (c).
In this section:
The term depository institution has the meaning given that term in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813).
The term Federal banking agencies means the Board of Governors of the Federal Reserve System, the Comptroller of the Currency, and the Federal Deposit Insurance Corporation.
The term insured credit union has the meaning given that term in section 101 of the Federal Credit Union Act (12 U.S.C. 1752).
The term rural area means—
a county that is neither in a metropolitan statistical area nor in a micropolitan statistical area that is adjacent to a metropolitan statistical area, as those terms are defined by the Office of Management and Budget and as they are applied under applicable Urban Influence Codes, established by the Department of Agriculture’s Economic Research Service; or
a census block that is not in an urban area, as defined by the Bureau of the Census using the latest decennial census of the United States.
The paragraph designated as the Eleventh of section 5136 of the Revised Statutes of the United States (12 U.S.C. 24) is amended, in the fifth sentence, by striking 15 each place that term appears and inserting 20.
The 23rd paragraph of section 9 of the Federal Reserve Act (12 U.S.C. 338a) is amended, in the fifth sentence, by striking 15 each place that term appears and inserting 20.
Section 104(b) of the Riegle Community Development and Regulatory Improvement Act of 1994 (12 U.S.C. 4703(b)) is amended by adding to the end the following:
The Secretary of the Treasury (or a designee of the Secretary) shall, at the discretion of the Chair of the Committee on Financial Services of the House of Representatives and the Chair of the Committee on Banking, Housing, and Urban Affairs of the Senate, annually testify before such committees (or a subcommittee of such committees) regarding the operations of the Fund during the previous year.
It is the sense of Congress that the authority to guarantee bonds under section 114A of the Community Development Banking and Financial Institutions Act of 1994 (12 U.S.C. 4713a) (commonly referred to as the CDFI Bond Guarantee Program) provides community development financial institutions with a sustainable source of long-term capital and furthers the mission of the Community Development Financial Institutions Fund (established under section 104(a) of such Act (12 U.S.C. 4703(a))) to increase economic opportunity and promote community development investments for underserved populations and distressed communities in the United States.
Section 114A of the Community Development Banking and Financial Institutions Act of 1994 (12 U.S.C. 4713a) is amended—
in subsection (c)(2)—
by striking , multiplied by an amount equal to the outstanding principal balance of issued notes or bonds; and
by inserting outstanding before principal amount;
by amending subsection (e)(2) to read as follows:
The Secretary may not guarantee any amount under the Program equal to an amount less than $25,000,000, but the total of all such guarantees in any fiscal year may not exceed $1,000,000,000.
in subsection (g)(1), by striking 10 basis points and inserting not fewer than 10 basis points and not more than 15 basis points; and
in subsection (k), by striking September 30, 2014 and inserting December 31, 2028.
The table of contents in section 1(b) of the Riegle Community Development and Regulatory Improvement Act of 1994 (Public Law 103–325; 108 Stat. 2160) is amended by inserting after the item relating to section 114 the following:
Not later than 3 years after the date of enactment of this Act, the Secretary of the Treasury shall issue a report to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives on the effectiveness of the CDFI bond guarantee program established under section 114A of the Community Development Banking and Financial Institutions Act of 1994 (12 U.S.C. 4713a).
In this subsection—
the term Federal financial institutions regulatory agency means the Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the National Credit Union Administration, and the Bureau of Consumer Financial Protection; and
the term regulatory action—
means any proposed, interim, or final rule or regulation; and
does not include any action taken by a Federal financial institutions regulatory agency that is solely applicable to an individual institution, including an enforcement action, adjudication, or order.
For any regulatory action occurring after the date of enactment of this Act, each Federal financial institutions regulatory agency shall—
take into consideration the risk profile and business models of each type of institution or class of institutions subject to the regulatory action; and
tailor the regulatory action applicable to an institution, or type of institution, in a manner that limits the regulatory impact, including cost, human resource allocation, and other burdens, on the institution or type of institution as is appropriate for the risk profile and business model involved.
In carrying out the requirements of paragraph (2) with respect to a regulatory action, each Federal financial institutions regulatory agency shall consider—
the aggregate effect of all applicable regulatory actions on the ability of institutions to flexibly serve customers of the institutions and local markets on and after the date of enactment of this Act;
the potential that efforts to implement the regulatory action and third-party service provider actions may work to undercut efforts to tailor the regulatory action, as described in paragraph (2)(B); and
the statutory provision authorizing the regulatory action, the congressional intent with respect to the statutory provision, and the underlying policy objectives of the regulatory action.
Each Federal financial institutions regulatory agency shall disclose and document in every notice of proposed rulemaking and in any final rulemaking for a regulatory action how the agency has applied paragraphs (2) and (3).
Not later than 1 year after the date of enactment of this Act and annually thereafter, each Federal financial institutions regulatory agency shall submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives a report on the specific actions taken to tailor the regulatory actions of the Federal financial institutions regulatory agency pursuant to the requirements of this section.
Not later than 18 months after the date of enactment of this Act, the Comptroller General of the United States shall submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives a report evaluating the effects of this section on the factors described in paragraph (3).
The appropriate Federal banking agencies, as defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813), shall promulgate regulations establishing a reduced reporting requirement for all banks eligible for the Community Bank Leverage Ratio, as defined in section 201(a) of the Economic Growth, Regulatory Relief, and Consumer Protection Act (12 U.S.C. 5371 note), when making the first and third report of condition of a year as required by section 7(a) of the Federal Deposit Insurance Act (12 U.S.C. 1817(a)).
Not later than 18 months after the date of enactment of this Act, the appropriate Federal banking agencies, as defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813), in consultation with State bank supervisors, shall submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives a report on the modernization of bank supervision, including the following factors:
Changing bank business models.
Examiner workforce and training.
The structure of supervisory activities within banking agencies.
Improving bank-supervisor communication and collaboration.
The use of supervisory technology.
Supervisory factors uniquely applicable to community banks.
Changes in statutes necessary to achieve more effective supervision.
Not later than 180 days after the date of the enactment of this Act, the Board of Governors of the Federal Reserve System shall revise appendix C to part 225 of title 12, Code of Federal Regulations (commonly known as the Small Bank Holding Company and Savings and Loan Holding Company Policy Statement), to raise the consolidated asset threshold under that appendix to $6,000,000,000 for any bank holding company or savings and loan holding company.
Section 201 of the Economic Growth, Regulatory Relief, and Consumer Protection Act (12 U.S.C. 5371 note) is amended—
in subsection (a)(3)(A), by striking $10,000,000,000 and inserting $15,000,000,000; and
in subsection (b)(1), by striking not less than 8 percent and not more than 10 percent and inserting not less than 6 percent and not more than 9 percent.
Not later than the end of the 180-day period beginning on the date of enactment of this Act, and after reviewing the report issued pursuant to subsection (b)(2), the Board of Governors of the Federal Reserve System, the Comptroller of the Currency, and the Federal Deposit Insurance Corporation shall propose and, not later than 1 year after the date of the enactment of this Act, such agencies shall finalize rules to carry out the amendments made by paragraph (1) and the recommended modifications contained in such report.
The Board of Governors of the Federal Reserve System, the Comptroller of the Currency, and the Federal Deposit Insurance Corporation shall commence a review of the Community Bank Leverage Ratio (CBLR) developed under section 201 of the Economic Growth, Regulatory Relief, and Consumer Protection Act (12 U.S.C. 5371 note), and rules issued thereunder, which shall include a consideration of how to modify and calibrate the CBLR to encourage more qualifying community banks to opt-in to the CBLR framework, with an additional focus on—
those qualifying community banks with fewer assets; and
providing regulatory compliance burden relief so that the CBLR is simple to apply.
Not later than the end of the 150-day period beginning on the date of enactment of this Act, the Board of Governors of the Federal Reserve System, the Comptroller of the Currency, and the Federal Deposit Insurance Corporation shall issue a report to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate containing—
all findings and determinations made in carrying out the review under paragraph (1); and
specific recommendations on modifications, if any, to—
the calculation of the numerator and denominator of the CBLR;
the treatment of specific asset classes or exposures to better reflect the risk profiles of community banks;
the definition of and qualifying criteria for a qualifying community bank;
enhancements to the procedures for opting into or out of the CBLR framework, including streamlined reporting and transition mechanisms;
the grace period to facilitate the transition to and from a modified CBLR regime; and
any statutory changes that may be needed to address such recommendations.
In this subsection, the term qualifying community bank has the meaning given that term in section 201(a)(3)(A) of the Economic Growth, Regulatory Relief, and Consumer Protection Act (12 U.S.C. 5371 note).
Section 11 of the Federal Reserve Act (12 U.S.C. 248) is amended—
by redesignating the second subsection (s) (relating to assessments) as subsection (t); and
in subsection (t), as so redesignated—
in paragraph (2), by striking $100,000,000,000 each place that term appears and inserting $150,000,000,000; and
in paragraph (3), by striking between $100,000,000,000 and $250,000,000,000 and inserting between $150,000,000,000 and $370,000,000,000.
Section 4(k)(6)(B)(ii) of the Bank Holding Company Act of 1956 (12 U.S.C. 1843(k)(6)(B)(ii)) is amended by striking $10,000,000,000 and inserting $15,000,000,000.
The Financial Stability Act of 2010 (12 U.S.C. 5311 et seq.) is amended—
in section 116(a) (12 U.S.C. 5326(a)), by striking $250,000,000,000 and inserting $370,000,000,000;
in section 121(a) (12 U.S.C. 5331(a)), by striking $250,000,000,000 and inserting $370,000,000,000;
in section 163(b) (12 U.S.C. 5363(b))—
by striking $250,000,000,000 each place that term appears and inserting $370,000,000,000; and
by striking $10,000,000,000 and inserting $15,000,000,000;
in section 164 (12 U.S.C. 5364), by striking $250,000,000,000 and inserting $370,000,000,000; and
in section 165 (12 U.S.C. 5365)—
in subsection (a)—
in paragraph (1), by striking $250,000,000,000 and inserting $370,000,000,000; and
in paragraph (2)(C), by striking $100,000,000,000 and inserting $150,000,000,000;
in subsection (h)(2), by striking $50,000,000,000 each place that term appears and inserting $75,000,000,000;
in subsection (i)(2)(A), by striking $250,000,000,000 and inserting $370,000,000,000; and
in subsection (j)(1), by striking $250,000,000,000 and inserting $370,000,000,000.
Section 401(f) of the Economic Growth, Regulatory Relief, and Consumer Protection Act (12 U.S.C. 5365 note) is amended by striking $250,000,000,000 and inserting $370,000,000,000.
The Financial Stability Act of 2010 (12 U.S.C. 5311 et seq.) is further amended by adding at the end the following:
By April 1, 2031, and the 1st day of each subsequent 5-year period, the Board of Governors shall increase the thresholds described in subsection (b) by the ratio, if greater than 1, of the annual value of current-dollar United States gross domestic product, published by the Department of Commerce, for the calendar year preceding the year in which the adjustment is calculated under this section, to the published annual value of such index for the calendar year preceding April 1, 2026.
The thresholds described in this subsection are the following:
Each bank holding company or savings and loan holding company total consolidated asset amount in the second subsection (s) (relating to assessments) of section 11 of the Federal Reserve Act.
Each bank holding company total consolidated asset amount in—
sections 116(a), 121(a), 163(b), 164, 165(a)(1), 165(h)(2), and 165(j)(1) of this Act; and
section 401(f) of the Economic Growth, Regulatory Relief, and Consumer Protection Act.
Each financial company total consolidated asset amount in section 165(i)(2)(A) of this Act.
The values used in the calculation under subsection (a) shall be, as of the date of the calculation, the values most recently published by the Department of Commerce.
If any amount equal to or greater than $100,000,000,000 determined under subsection (a) for any period is not a multiple of $50,000,000,000, the amount shall be rounded up to the nearest $50,000,000,000.
If any amount less than $100,000,000,000 determined under subsection (a) for any period is not a multiple of $5,000,000,000, the amount shall be rounded up to the nearest $5,000,000,000.
Not later than April 5 of any calendar year in which an adjustment is required to be calculated under subsection (a), the Board of Governors shall publish in the Federal Register the amounts as so calculated.
Any increase in amounts determined under subsection (a) shall take effect on January 1 of the year immediately succeeding the calendar year in which the increase is required to be calculated under subsection (a).
Not later than June 30, 2026, and the 1st day of each subsequent 5-year period, the Board of Governors, the Comptroller of the Currency, and the Corporation shall, to the extent applicable, review—
any regulation—
implementing section 165 of this Act; or
making specific cross-reference to any regulation of the Board of Governors implementing section 165 of this Act; and
any asset threshold or other quantitative threshold in such regulations implementing section 165 of this Act, or in such regulations making specific cross-reference to any regulation of the Board of Governors implementing section 165 of this Act, the amount of which is not prescribed by statute.
The Board of Governors, the Comptroller of the Currency, and the Corporation shall modify any such thresholds identified by each review conducted under subsection (a) by the ratio, if greater than 1, of the annual value of current-dollar United States gross domestic product, published by the Department of Commerce, for the calendar year preceding the year in which the modification is calculated under this section, to the published annual value of such index for the calendar year preceding the effective date of such threshold, as each respective agency shall determine as appropriate for such regulations. In making such determination, the Board of Governors, the Comptroller of the Currency, and the Corporation shall—
use the values for current-dollar United States gross domestic product most recently published by the Department of Commerce as of the date of commencement of the review;
seek to establish, to the extent feasible, uniform thresholds for use by each such agency, taking into account the entities regulated by each such agency and the purposes for which such threshold was established; and
seek to adjust such thresholds, to the extent feasible, with rounding consistent with section 177(d) of this Act.
Upon conclusion of each review required under subsection (a), each of the Board of Governors, the Comptroller of the Currency, and the Corporation shall transmit a report to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate containing a description of any modification of any regulation such agency made pursuant to subsection (b).
The table of contents in section 1(b) of the Dodd-Frank Wall Street Reform and Consumer Protection Act is amended by inserting after the item relating to section 176 the following:
The Bank Holding Company Act of 1956 (12 U.S.C. 1841 et seq.) is amended—
in section 5(c)(3)(C)(ii) (12 U.S.C. 1844(c)(3)(C)(ii)), by striking $1,000,000 and inserting $3,000,000; and
in section 13(h)(1)(B)(i) (12 U.S.C. 1851(h)(1)(B)(i)), by striking $10,000,000,000 and inserting $15,000,000,000.
Section 809(a) of the Community Reinvestment Act of 1977 (12 U.S.C. 2908(a)) is amended by striking $250,000,000 and inserting $800,000,000.
The Depository Institution Management Interlocks Act (12 U.S.C. 3201 et seq.) is amended—
in section 202(4) (12 U.S.C. 3201(4)), by striking $100,000,000 and inserting $600,000,000;
in section 203(1) (12 U.S.C. 3202(1)), by striking $50,000,000 and inserting $110,000,000; and
in section 204 (12 U.S.C. 3203)—
by striking $2,500,000,000 and inserting $10,000,000,000; and
by striking $1,500,000,000 and inserting $10,000,000,000.
The Dodd-Frank Wall Street Reform and Consumer Protection Act (12 U.S.C. 5301 et seq.) is amended—
in section 210 (12 U.S.C. 5390)—
in subsection (o), by striking $50,000,000,000 in each place it appears and inserting $105,000,000,000; and
in subsection (r), by striking $1,000,000 and inserting $5,000,000; and
in section 956(f) (12 U.S.C. 5641(f)), by striking $1,000,000,000 and inserting $3,000,000,000.
The Federal Credit Union Act (12 U.S.C. 1751 et seq.) is amended—
in section 202 (12 U.S.C. 1782)—
in subsection (a)(6)(C)(iii)—
in the heading, by striking De MINIMUS and inserting De MINIMIS; and
by striking $10,000,000 and inserting $34,000,000;
in subsection (a)(6)(D)—
by striking $500,000,000 and inserting $2,000,000,000; and
by striking $10,000,000 and inserting $34,000,000;
in subsection (b)(1)(A), by striking $50,000,000 each place that term appears and inserting $170,000,000; and
in subsection (c)(1)(A)(iii), by striking $50,000,000 each place that term appears and inserting $170,000,000; and
in section 216 (12 U.S.C. 1790d)—
in subsection (f)(2), by striking $10,000,000 and inserting $34,000,000;
in subsection (i)(4)(B), by striking $5,000,000 and inserting $17,000,000;
in subsection (j)(2)(A), by striking $25,000,000 and inserting $51,000,000; and
in subsection (o)(4), by striking $10,000,000 and inserting $34,000,000.
The Federal Deposit Insurance Act (12 U.S.C. 1811 et seq.) is amended—
in section 7(a)(12) (12 U.S.C. 1817(a)(12)), by striking $5,000,000,000 and inserting $8,000,000,000;
in section 11(p)(1)(A)(i) (12 U.S.C. 1821(p)(1)(A)(i)), by striking $1,000,000 and inserting $5,000,000;
in section 36 (12 U.S.C. 1831m)—
in subsection (i), by striking $5,000,000,000 each place that term appears and inserting $21,000,000,000; and
in subsection (j), by striking $150,000,000 each place that term appears and inserting $800,000,000; and
in section 38 (12 U.S.C. 1831o)—
in subsection (b), by striking $300,000,000 and inserting $2,000,000,000; and
in subsection (k)—
by striking $50,000,000 and inserting $110,000,000; and
by striking $75,000,000 and inserting $150,000,000.
Section 2(10) of the Federal Home Loan Bank Act (12 U.S.C. 1422(10)) is amended by striking $1,000,000,000 each place that term appears and inserting $3,000,000,000.
The Federal Reserve Act (12 U.S.C. 221 et seq.) is amended—
in section 7(a)(1) (12 U.S.C. 289) by striking $10,000,000,000 each place that term appears and inserting $17,000,000,000; and
in section 22(h)(5)(C) (12 U.S.C. 375b(h)(5)(C)) by striking $100,000,000 and inserting $500,000,000.
The Home Mortgage Disclosure Act of 1975 (12 U.S.C. 2801 et seq.) is amended—
in the second paragraph (3) of section 304(i) (12 U.S.C. 2803(i)(3); relating to Exemption from certain disclosure requirements), by striking $30,000,000 and inserting $160,000,000; and
in section 309(a) (12 U.S.C. 2808(a)), by striking $10,000,000 and inserting $180,000,000.
Section 5(u) of the Home Owners’ Loan Act (12 U.S.C. 1464(u)) is amended—
in paragraph (2)(A)(i), by striking $500,000 and inserting $3,000,000; and
in paragraph (2)(A)(ii), by striking $30,000,000 and inserting $160,000,000.
Section 909(a)(1) of the International Lending Supervision Act of 1983 (12 U.S.C. 3908(a)(1)) is amended by striking $20,000,000 and inserting $160,000,000.
Section 3(1)(B)(iv) of the Real Estate Settlement Procedures Act of 1974 (12 U.S.C. 2602(1)(B)(iv)) is amended by striking $1,000,000 and inserting $19,000,000.
Section 5136A(a)(2)(D)(ii) of the Revised Statutes of the United States (12 U.S.C. 24a(a)(2)(D)(ii)) is amended by striking $50,000,000,000 and inserting $175,000,000,000.
Section 129C(b)(2)(F)(i) of the Truth in Lending Act (15 U.S.C. 1639c(b)(2)(F)(i)) is amended by striking $10,000,000,000 and inserting $15,000,000,000.
By April 1, 2031, and the 1st day of each subsequent 5-year period, the Board of Governors of the Federal Reserve System shall prescribe the amount by which each dollar amount described in subsection (a) shall be increased by the ratio, if greater than 1, of the annual value of current-dollar United States gross domestic product, published by the Department of Commerce, for the calendar year preceding the year in which the adjustment is calculated under this subsection, to the published annual value of current-dollar United States gross domestic product for the calendar year preceding April 1, 2026.
The values used in the calculation under paragraph (1) shall be, as of the date of the calculation, the values most recently published by the Department of Commerce.
If any amount equal to or greater than $100,000,000,000 determined under paragraph (1) for any period is not a multiple of $50,000,000,000, the amount shall be rounded up to the nearest $50,000,000,000.
If any amount less than $100,000,000,000 but equal to or greater than $10,000,000,000 determined under paragraph (1) for any period is not a multiple of $5,000,000,000, the amount shall be rounded up to the nearest $5,000,000,000.
If any amount less than $10,000,000,000 but equal to or greater than $1,000,000,000 determined under paragraph (1) for any period is not a multiple of $500,000,000, the amount shall be rounded up to the nearest $500,000,000.
If any amount less than $1,000,000,000 but equal to or greater than $100,000,000 determined under paragraph (1) for any period is not a multiple of $50,000,000, the amount shall be rounded up to the nearest $50,000,000.
If any amount less than $100,000,000 but equal to or greater than $10,000,000 determined under paragraph (1) for any period is not a multiple of $5,000,000, the amount shall be rounded up to the nearest $5,000,000.
If any amount less than $10,000,000 but equal to or greater than $1,000,000 determined under paragraph (1) for any period is not a multiple of $500,000, the amount shall be rounded up to the nearest $500,000.
If any amount less than $1,000,000 but equal to or greater than $100,000 determined under paragraph (1) for any period is not a multiple of $50,000, the amount shall be rounded up to the nearest $50,000.
If any amount less than $100,000 but equal to or greater than $10,000 determined under paragraph (1) for any period is not a multiple of $5,000, the amount shall be rounded up to the nearest $5,000.
If any amount less than $10,000 but equal to or greater than $1,000 determined under paragraph (1) for any period is not a multiple of $500, the amount shall be rounded up to the nearest $500.
If any amount less than $1,000 but equal to or greater than $100 determined under paragraph (1) for any period is not a multiple of $50, the amount shall be rounded up to the nearest $50.
If any amount less than $100 but equal to or greater than $10 determined under paragraph (1) for any period is not a multiple of $5, the amount shall be rounded up to the nearest $5.
If any amount less than $10 but equal to or greater than $1 determined under paragraph (1) for any period is not a multiple of $0.50, the amount shall be rounded up to the nearest $0.50.
Not later than April 5 of any calendar year in which an adjustment is required to be calculated under paragraph (1), the Board of Governors of the Federal Reserve System shall publish in the Federal Register the dollar amounts as so calculated.
The increase in the dollar amounts shall take effect on January 1 of the year immediately succeeding any calendar year in which an adjustment is required to be calculated under paragraph (1).
Section 113 of the Federal Credit Union Act (12 U.S.C. 1761b) is amended—
by striking monthly each place such term appears;
in the matter preceding paragraph (1), by striking The board of directors and inserting the following:
The board of directors
in subsection (a) (as so designated), by striking shall meet at least once a month and; and
by adding at the end the following:
The board of directors of a Federal credit union shall meet as follows:
With respect to a de novo Federal credit union, not less frequently than monthly during each of the first five years of the existence of such Federal credit union.
Not less than six times annually, with at least one meeting held during each fiscal quarter, with respect to a Federal credit union—
with composite rating of either 1 or 2 under the Uniform Financial Institutions Rating System (or an equivalent rating under a comparable rating system); and
with a capability of management rating under such composite rating of either 1 or 2.
Not less frequently than once a month, with respect to a Federal credit union—
with composite rating of either 3, 4, or 5 under the Uniform Financial Institutions Rating System (or an equivalent rating under a comparable rating system); or
with a capability of management rating under such composite rating of either 3, 4, or 5.
Congress finds that—
CAMELS ratings (Capital adequacy, Asset quality, Management, Earnings, Liquidity, and Sensitivity to market risk) are a critical tool for evaluating the safety and soundness of financial institutions, and the basis for determining significant regulatory matters such as the evaluation for mergers and acquisitions and a bank’s deposit insurance premiums;
the CAMELS rating system relies heavily on examiner judgment, which can lead to subjective and inconsistent ratings across similar institutions;
establishing articulable, clear, and reviewable measures for each CAMELS component and their relative weighting in determining composite ratings will promote fairness, consistency, and accountability in supervisory assessments; and
examination and supervision, as well as the CAMELS rating system, should focus on a financial institution’s material financial condition or solvency.
The Federal Financial Institutions Examination Council Act of 1978 (12 U.S.C. 3301 et seq.) is amended by adding at the end the following:
The Council shall make recommendations to amend the Uniform Financial Institutions Rating System, and the CAMELS components thereunder, to—
establish articulable, clear, and reviewable criteria for assessing each CAMELS component;
revise the factors affecting each CAMELS component to derive a composite rating that more accurately reflects the material financial condition and risk profile of the financial institutions being rated;
either—
eliminate the management component of the CAMELS rating system; or
revise the management component of the CAMELS rating system to limit the assessment under such component to articulable, clear, and reviewable measures of the governance and controls used to manage an institution’s risk profile;
ensure that composite ratings consider the financial institution’s compliance with—
section 21 of the Federal Deposit Insurance Act (12 U.S.C. 1829b);
chapter 2 of title I of Public Law 91–508 (12 U.S.C. 1951 et seq.);
subchapter II of chapter 53 of title 31, United States Code; and
any other applicable requirements and implementing regulations relating to the prevention of money laundering and terrorist financing; and
ensure that composite ratings are determined based on a transparent methodology that is limited to the objective criteria established for each CAMELS component.
Not later than 12 months after the Council makes the recommendations required under subsection (a), the Federal financial institutions regulatory agencies shall, jointly, issue rules to carry out the recommendations described under subsection (a).
In issuing the rules required under subsection (b), the Federal financial institutions regulatory agencies shall—
publish a notice of proposed rulemaking with respect to such rules; and
provide for a public comment period of not less than 90 days.
Nothing in this section may be construed to limit the authority of the Federal financial institutions regulatory agencies to take supervisory, adjudicatory, or enforcement actions to ensure the safety and soundness of financial institutions.
Section 2(o)(9)(A) of the Bank Holding Company Act of 1956 (12 U.S.C. 1841(o)(9)(A)) is amended—
by striking achievement of and all that follows through a CAMEL and inserting achievement of a CAMEL;
by striking ; and and inserting ; or; and
by striking clause (ii).
The Federal Financial Institutions Examination Council Act of 1978 (12 U.S.C. 3301 et seq.), as amended by section 301(b)(1), is further amended by adding at the end the following:
A Federal financial institutions regulatory agency shall complete any examination of a financial institution, other than a financial institution subject to a continuous or resident examination program, within 270 days of commencing the examination, except that such period may be extended by the Federal financial institutions regulatory agency by providing written notice to the financial institution describing with particularity the reasons that a longer period is needed.
A Federal financial institutions regulatory agency shall provide a final examination report to a financial institution, other than a financial institution subject to a continuous or resident examination program, not later than 90 days after the later of—
the exit interview for an examination of the institution; or
the provision of additional material information by the institution relating to the examination.
Within 30 days of completing an examination for a financial institution not subject to a continuous or resident examination program, a Federal financial institutions regulatory agency shall conduct an exit interview with the financial institution’s senior management or the board of directors, except that such period may be extended by the Federal financial institutions regulatory agency by providing written notice to the institution describing with particularity the reasons that a longer period is needed to complete the exit interview.
Upon the written request of a financial institution, the Federal financial institutions regulatory agency shall include with the final report an appendix listing all examination or other factual information relied upon by the agency in support of a material supervisory determination.
The Federal Financial Institutions Examination Council Act of 1978 (12 U.S.C. 3301 et seq.), as amended by subsection (a), is further amended by adding at the end the following:
Each Federal financial institutions regulatory agency shall establish procedures providing that a covered financial institution may, upon application by the covered financial institution and with respect to a covered action, obtain written advice regarding—
the agency’s non-objection to the financial institution conducting a particular activity;
the agency’s interpretation of a law or regulation as applied to a particular matter;
the agency’s interpretation of how generally accepted accounting principles or accounting objectives, standards, and requirements apply to a particular matter; or
the agency’s application of any supervisory guidance, statement of policy, or interpretive rule to a particular matter.
In this subsection and with respect to a covered financial institution, the term covered action means—
any action in connection with a regulated activity that the covered financial institution is taking or is intending to take, including—
entering into a transaction;
issuing a product or service; or
changing the corporate structure of the covered financial institution; and
a Federal financial institutions regulatory agency’s objection to the covered financial institution commencing or otherwise conducting an activity (including an action described in subparagraph (A)).
The procedures established under subsection (a) shall provide that a request for written advice made under the procedures shall be in writing and contain—
the nature of the request;
applicable facts relating to the matter;
applicable law, regulation, or generally accepted accounting principles relating to the matter; and
a summary of the request.
A Federal financial institutions regulatory agency receiving a request for written advice under subsection (a) shall, not later than 30 days after receiving the request—
provide the financial institution making the request with written notification that the agency received the request and stating whether the request contains all of the information required under subsection (b); and
if the request does not contain all of the information required under subsection (b)—
provide the financial institution with an explanation of what information is missing; and
notify the financial institution that the financial institution may provide the missing information to the agency within 30 days.
If a Federal financial institutions regulatory agency informs the financial institution under subsection (c) that the request for written advice does not contain all the information required under subsection (b), the financial institution may provide the missing information to the Federal financial institutions regulatory agency during the 30-day period beginning on the date the financial institution receives the explanation of the missing information under subsection (c).
A Federal financial institutions regulatory agency receiving a request for written advice under the procedures established under subsection (a) shall provide the financial institution with a written response (or, for purposes of paragraph (3), notify the financial institution that a determination cannot be made)—
if the initial request contains the information required under subsection (b), not later than the end of the 60-day period beginning on the date the Federal financial institutions regulatory agency notifies the financial institution of the receipt of the request under subsection (c);
if the initial request does not contain the information required under subsection (b), but the financial institution provides the missing information during the 30-day period described under subsection (d), not later than the end of the 60-day period beginning on the date such missing information is provided; or
if the initial request does not contain the information required under subsection (b), and the financial institution does not provide the missing information during the 30-day period described under subsection (d), not later than the end of the 60-day period beginning on the end of such 30-day period.
Written advice issued by a Federal financial institutions regulatory agency under the procedures established under this section—
shall be binding on the agency with respect to the financial institution requesting the written advice and the specific facts described in the request;
may be relied upon by the financial institution requesting the written advice in good faith; and
shall not be binding on the agency with respect to any other person or institution and shall not be treated as precedent.
Written advice issued under this section, and any materials submitted in connection therewith, and the fact that a request for written advice was made shall be treated as confidential supervisory information and exempt from disclosure under section 552(b) of title 5, United States Code.
A Federal financial institutions regulatory agency may publish anonymized or redacted summaries of rulings for informational purposes.
A Federal financial institutions regulatory agency may modify or revoke written advice issued under this section only if—
the requesting financial institution made a material misstatement or omission of fact;
there has been a change in controlling law; or
the ruling is inconsistent with a final rule or judicial decision issued after the date the written advice was issued.
Each Federal financial institutions regulatory agency may establish and collect a reasonable fee for the processing and issuance of any written advice issued under this section, and such fee—
shall be based on the estimated cost to the agency of reviewing, analyzing, and responding to the request;
may vary based on the complexity of the request or the size of the requesting institution; and
shall be prescribed by regulation.
Written advice issued under the procedures established under this section shall not be construed as a final agency action.
The Federal Financial Institutions Examination Council Act of 1978 (12 U.S.C. 3301 et seq.), as amended by subsection (b), is further amended by adding at the end the following:
There is established in the Council an Office of Independent Examination Review (the Office).
The head of the Office shall be the Board of Independent Examination Review, which shall be comprised of 3 members, appointed by the President, by and with the advice and consent of the Senate.
The President shall appoint 1 member of the Board from each of the following classes of individuals:
Individuals who have been employed by a Federal financial institutions regulatory agency.
Individuals who are not, and were not during the previous 5-year period, employed by a Federal financial institutions regulatory agency or a Federal reserve bank and who—
are a licensed attorney or a certified public accountant authorized to practice under the laws of a State, the District of Columbia, or a territory of the United States;
have academic or private sector experience relating to financial services; or
have relevant work-related experience in consumer affairs or compliance with consumer protection laws with respect to financial institutions.
Individuals with at least 10 years private sector financial services senior management-level experience.
The President may not appoint an individual as a member of the Board if the individual—
is, or was during the previous 2-year period, employed by a Federal financial institutions regulatory agency or a Federal reserve bank; or
is, or was during the previous 2-year period, employed by a financial institution.
In appointing members of the Board, the President shall consult with the Federal financial institutions regulatory agencies and financial institutions.
Each member of the Board shall serve for a term of 3 years. Upon the expiration of a member’s terms of office, the member shall continue to serve until the member’s successor has been confirmed by the Senate.
No individual may serve more than 2 full terms on the Board.
Not more than 2 members of the Board shall be members of the same political party.
3 members of the Board shall constitute a quorum.
During the 6-month period beginning on the date of enactment of this section, 1 member of the Board shall constitute a quorum until the Board has 3 members.
The annual rate of basic pay for the members of the Board shall be the rate of basic pay for Level IV of the Executive Schedule under section 5315 of title 5, United States Code.
The Board is authorized to hire staff to support the activities of the Office of Independent Examination Review, and set the salaries of such staff. One-fifth of the costs and expenses of the Office, including the salaries of its employees, shall be paid by each of the Federal financial institutions regulatory agencies. Annual assessments for such share shall be levied by the Council based upon its projected budget for the year, and additional assessments may be made during the year if necessary.
The Board shall—
receive and, at the discretion of the Board, investigate complaints from financial institutions, their representatives, or another entity acting on behalf of such institutions, concerning completed examinations, examination practices, or examination reports;
hold meetings, at least once every three months and in locations designed to encourage participation from all sections of the United States, with financial institutions, their representatives, or another entity acting on behalf of such institutions, to discuss examination procedures, examination practices, or examination policies;
review examination procedures of the Federal financial institutions regulatory agencies to ensure that the written examination policies of those agencies are being followed in practice and adhere to the standards for consistency;
conduct a continuing and regular program of examination quality assurance for all examination types conducted by the Federal financial institutions regulatory agencies;
carry out an independent review of any supervisory appeal initiated under section 1016; and
report annually to the Committee on Financial Services of the House of Representatives, the Committee on Banking, Housing, and Urban Affairs of the Senate, and the Council, on the reviews carried out pursuant to paragraphs (3) and (5), including compliance with the requirements set forth in section 1014 regarding timeliness of examination reports, and the Board’s recommendations for improvements in examination procedures, practices, and policies.
The Board and the Council shall keep confidential—
all meetings, discussions, and information provided by financial institutions and Federal financial institutions regulatory agencies that involve confidential supervisory information or privileged information;
all information and communications exchanged between a financial institution and the Office of Independent Examination Review; and
all information and communications exchanged between a Federal financial institutions regulatory agency and the Office of Independent Examination Review.
Section 18(x) of the Federal Deposit Insurance Act (12 U.S.C. 1828(x)) shall apply to the submission of information to the Board by a financial institution or a Federal financial institutions regulatory agency to the same extent as such section 18(x) applies to the submission of information described in that section 18(x).
The Board shall be considered a covered agency for purposes of section 11(t) of the Federal Deposit Insurance Act (12 U.S.C. 1821(t)).
Section 1003 of the Federal Financial Institutions Examination Council Act of 1978 (12 U.S.C. 3302) is amended—
in paragraph (2), by striking and at the end; and
by adding at the end the following:
the term Board means the Board of Independent Examination Review established under section 1015(b);
the term material supervisory determination has the meaning given such term in section 309(c) of the Riegle Community Development and Regulatory Improvement Act of 1994;
the term insured depository institution has the meaning given that term in section 3 of the Federal Deposit Insurance Act; and
the term insured credit union has the meaning given that term in section 101 of the Federal Credit Union Act.
The Federal Financial Institutions Examination Council Act of 1978 (12 U.S.C. 3301 et seq.), as amended by subsection (c), is further amended by adding at the end the following:
A financial institution shall have the right to obtain an independent review, as described in this section, of a material supervisory determination contained in a final report of examination.
A financial institution seeking review of a material supervisory determination under this section shall file a written notice with the Board within 30 days after receiving the final report of examination that is the subject of such review.
The institution may file a written request with the Board for an extension of the 60-day time period described under paragraph (1), which shall state good cause for granting the extension. Such request shall be granted in the sole discretion of the Board.
The written notice shall—
identify the material supervisory determination that is the subject of the requested independent examination review;
state the reasons why the institution believes that the material supervisory determination is incorrect or should otherwise be modified; and
include—
a clear and complete statement of all relevant facts and issues;
all arguments that the institution wishes to present; and
all relevant and material documents in the possession of the institution that the institution wishes to be considered.
An institution seeking a review of a material supervisory determination may, not later than 7 days after receiving the final examination report, request that the Federal financial institutions regulatory agency that made the material supervisory determination provide the institution with all examination and factual information relied upon by the agency in making the material supervisory determination. The agency shall provide that information to the institution not later than 14 days after receiving the request.
After receiving a written notice of review from a financial institution under this subsection, the Board shall direct the Federal financial institutions regulatory agency that made the material supervisory determination under review to file with the Board the supervisory record of the examination resulting in the material supervisory determination under review.
The Board shall—
determine the merits on the record, including whether the material supervisory determination being reviewed should be upheld, canceled, or modified; or
at the election of the financial institution, conduct a hearing, which shall take place not later than 60 days after the petition for review is received by the Board.
A financial institution electing for a hearing under paragraph (1)(B) shall have the right the obtain testimony under oath from agency employees and obtain documents and other evidence at the hearing, or in advance of the hearing, according to procedures instituted by the Board consistent with those set forth under sections 556 and 557 of title 5, United States Code.
The Board shall issue a written decision based upon the record of the examination, supplemented by the record established at any hearing.
The Board’s review of a material supervisory determination being reviewed under this subsection shall be de novo, and the Board shall not defer to the opinions of examiners, but shall independently determine the appropriateness of the material supervisory determination based upon the relevant statutes, regulations, other appropriate guidance, and the evidentiary record.
The Board shall conduct reviews under this section applying the policies, regulations, and interpretations of the Federal financial institutions regulatory agency that made the material supervisory determination under review in effect at the time the material supervisory determination was made.
A decision by the Board on an independent review under this section shall—
be made not later than 60 days after the record has been closed; and
be deemed final and shall bind the agency whose supervisory determination was the subject of the review and the financial institution requesting the review.
If the Board, in carrying out this section, determines that a financial institution has violated a law or regulation, the Board shall refer such determination to the applicable Federal financial institutions regulatory agency.
The Board shall report annually to the Committee on Financial Services of the House of Representatives, the Committee on Banking, Housing, and Urban Affairs of the Senate, and the Council on actions taken under this section, including the types of issues that the Board has reviewed and the results of those reviews, including information on each final determination with respect to a material supervisory determination.
In reporting under paragraph (1), the Board shall redact information about individual financial institutions and any confidential supervisory information or privileged information shared by financial institutions, and shall anonymize any un-redacted information that could, in the aggregate, identify a financial institution.
A Federal financial institutions regulatory agency may not—
retaliate against a financial institution, including service providers, or any institution-affiliated party, for exercising appellate rights under this section; or
delay or deny any agency action that would benefit a financial institution or any institution-affiliated party on the basis that an appeal under this section is pending under this section.
For purposes of this subsection, retaliation includes delaying consideration of, or withholding approval of, any request, notice, or application that otherwise would have been approved, but for the exercise of a financial institution’s rights under this section.
The Board shall issue rules to establish procedures for hearings described under this section, including that—
a financial institution may appear at the hearing personally or through counsel;
a financial institution may provide an oral and written presentation at the hearing;
the Board may ask questions of any person participating in the hearing;
the hearing shall not be governed by the Federal Rules of Evidence; and
the Board shall have a verbatim transcript of the hearing prepared.
The appeal of a material supervisory determination by a financial institution under this section shall not affect the authority of a Federal financial institutions regulatory agency during the pendency of such appeal to enforce the material supervisory determination or to take an action based on such material supervisory determination, if the Federal financial institutions regulatory agency determines that such enforcement or action is necessary to ensure the immediate safety and soundness of the financial institution.
Section 309 of the Riegle Community Development and Regulatory Improvement Act of 1994 (12 U.S.C. 4806) is amended—
in the heading, by striking REGULATORY APPEALS PROCESS, OMBUDSMAN, and inserting OMBUDSMAN (and by conforming the item relating to such section in the table of contents accordingly);
by striking subsections (a), (b), and (c);
by redesignating subsections (d), (e), (f), and (g) as subsections (a), (b), (c), and (d), respectively;
in subsection (b), as so redesignated—
in paragraph (2)—
in subparagraph (B), by striking and at the end;
in subparagraph (C), by striking the period and inserting ; and; and
by adding at the end the following:
ensure that appropriate safeguards exist for protecting any party from retaliation by any agency for exercising rights under this subsection.
by adding at the end the following:
For purposes of this subsection, retaliation includes delaying consideration of, or withholding approval of, any request, notice, or application that otherwise would have been approved, but for the exercise of a financial institution’s rights under this section.
in paragraph (1)(A) of subsection (c), as so redesignated—
in clause (ii), by striking ; and and inserting a semicolon;
in clause (iii), by striking ; and and inserting a semicolon; and
by adding at the end the following:
any issue specifically listed in an exam report as a matter requiring attention by the institution’s management or board of directors; and
any suspension or removal of an institution’s status as eligible for expedited processing of applications, requests, notices, or filings on the grounds of a supervisory or compliance concern, regardless of whether that concern has been cited as a basis for a material supervisory determination or matter requiring attention in an examination report, provided that the conduct at issue did not involve violation of any criminal law; and
Nothing in this subsection affects the authority of a Federal banking agency (as defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813)) or the National Credit Union Administration Board to take enforcement or other supervisory action.
Section 205(j) of the Federal Credit Union Act (12 U.S.C. 1785(j)) is amended by inserting the Bureau of Consumer Financial Protection, before the Administration each place that term appears.
The Federal Financial Institutions Examination Council Act of 1978 (12 U.S.C. 3301 et seq.) is amended—
in section 1003 (12 U.S.C. 3302)—
by striking paragraph (1) and inserting the following:
the term Federal financial institutions regulatory agencies—
means the Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and the National Credit Union Administration; and
includes the Bureau of Consumer Financial Protection for purposes of sections 1012 through 1015;
in paragraph (3), by striking the semicolon at the end and inserting , except that for purposes of sections 1013 through 1016, the term financial institution does not include a credit union that is not an insured credit union;;
in section 1004(a)(4) (12 U.S.C. 3303), by striking Consumer Financial Protection Bureau and inserting Bureau of Consumer Financial Protection; and
in section 1005 (12 U.S.C. 3304)—
by striking One-fifth and inserting One-fourth; and
by inserting described under section 1003(1)(A) after agencies.
Section 8 of the Federal Deposit Insurance Act (12 U.S.C. 1818) is amended—
in subsection (b), by adding at the end the following:
With respect to any notice properly issued and served upon a depository institution or institution-affiliated party under this subsection, such depository institution or institution-affiliated party shall be afforded a hearing before—
the appropriate Federal banking agency; or
if such institution or person submits a request within 20 days after the issuance of the notice, the appropriate United States district court, and that court shall have jurisdiction to adjudicate all claims and requested remedies stated in the notice of charges, including those authorized under this subsection.
in subsection (e), by adding at the end the following:
With respect to any notice properly issued and served upon an institution-affiliated party under this subsection, such institution-affiliated party shall be afforded a hearing before—
the appropriate Federal banking agency; or
if such party submits a request for such hearing and forum within 20 days after the issuance of the notice, the appropriate United States district court, and that court shall have jurisdiction to adjudicate all claims and requested remedies stated in the notice, including those authorized under this subsection.
in subsection (h)—
in paragraph (1), by striking (other than the hearing provided for in subsection (g)(3) of this section) and inserting (other than the hearing provided for in subsection (b)(11)(B), (e)(8)(B), (g)(3), or (i)(2)(H)(ii)); and
by adding at the end the following:
Any hearing provided for in subsection (b)(11)(B), (e)(8)(B), or (i)(2)(H)(ii) shall be subject to the jurisdiction, powers, and equitable authority of the district court and be governed by the Federal Rules of Civil Procedure and the Federal Rules of Evidence.
Any final decision of a United States district court made pursuant to a respondent’s election under subsection (b)(11)(B), (e)(8)(B), or (i)(2)(H)(ii) shall be reviewable in the appropriate court of appeals in the same manner and to the same extent as any other civil action to which the United States is a party.
in subsection (i)(2)—
by amending subparagraph (E)(ii) to read as follows:
If, with respect to any assessment under clause (i), a hearing is not requested or an election is not made and timely noticed pursuant to subparagraph (H) within the period of time allowed under such subparagraph, the assessment shall constitute a final and unappealable order.
by amending subparagraph (H) to read as follows:
The insured depository institution or institution-affiliated party against whom any penalty is assessed under this paragraph shall be afforded a hearing before—
an agency, if such institution or person submits a request for such hearing within 20 days after the issuance of the notice of assessment; or
the appropriate United States district court, if such institution or person submits a request for such hearing and forum within 20 days after the issuance of the notice of assessment.
by amending subparagraph (I)(ii) to read as follows:
In any civil action under clause (i), except a civil action tried in a United States district court pursuant to subsection (b)(11)(B), (e)(8)(B), or (i)(2)(H)(ii), the validity and appropriateness of the penalty shall not be subject to review.
by adding at the end the following:
Nothing in subsection (b)(11)(B), (e)(8)(B), or (i)(2)(H)(ii) shall be construed to—
limit the authority of a Federal banking agency to initiate an administrative enforcement action; or
impair the validity of any consent order.
Section 10(d) of the Federal Deposit Insurance Act (12 U.S.C. 1820(d)) is amended by adding at the end the following:
The following shall apply to a well managed and well capitalized insured depository institution with $6,000,000,000 or less in consolidated assets:
After an insured depository institution receives a full-scope, on-site examination from the appropriate Federal banking agency, the next examination of the insured depository institution by the appropriate Federal banking agency shall be a limited-scope examination, as determined by the appropriate Federal banking agency.
If an insured depository institution is otherwise subject to separate safety and soundness examinations, consumer compliance examinations, and information technology and cybersecurity examinations, the appropriate Federal banking agency shall, upon request of the insured depository institution, combine two or three such examinations, as specified by the insured depository institution, and carry them out at the same time.
Subparagraph (A) shall not apply to an insured depository institution if—
the insured depository institution is currently subject to a formal enforcement proceeding or order by the Corporation or the appropriate Federal banking agency; or
a person acquired control of the insured depository institution since the most recent full-scope, on-site examination of the insured depository institution from the appropriate Federal banking agency.
Not later than 12 months after the date of enactment of this paragraph, the Federal banking agencies shall issue rules to carry out subparagraph (A), including, with respect to an insured depository institution described under subparagraph (A), to—
establish procedures for the limited-scope examinations described in subparagraph (A)(i);
establish procedures for reviewing insured depository institutions described under subparagraph (A), that—
experience material changes in financial condition or operational risk profile between scheduled examinations; or
have failed to comply with Federal or State banking laws and regulations; and
balance the goals of streamlining the examination cycle for individual insured depository institutions and reducing unnecessary regulatory burdens while maintaining sufficient oversight to ensure the continued safety and soundness of the insured depository institutions and compliance with all applicable laws and regulations.
Nothing in this paragraph may be construed to limit the authority of a Federal banking agency to conduct off-site monitoring, targeted reviews, or additional full-scope, on-site examinations of an insured depository institution if the Federal banking agency determines such monitoring, reviews, or examinations are necessary to ensure safety and soundness or compliance with applicable laws.
In this paragraph:
The term consumer compliance examination means an examination to assess compliance with the requirements of Federal consumer financial law (as such term is defined in section 1002 of the Consumer Financial Protection Act of 2010).
The term well capitalized has the meaning given that term in section 38(b).
With respect to an insured depository institution, the term well managed means that, when the institution was most recently examined by the appropriate Federal banking agency, the institution was found to be well managed, and the institution’s composite condition was found to be satisfactory or outstanding.
Section 204 of the Federal Credit Union Act (12 U.S.C. 1784) is amended by adding at the end the following:
The following shall apply to a well managed and well capitalized insured credit union with $6,000,000,000 or less in consolidated assets:
After an insured credit union receives a full-scope, on-site examination from the National Credit Union Administration, the next examination of the insured credit union by the National Credit Union Administration shall be a limited-scope examination, as determined by the National Credit Union Administration.
If an insured credit union is otherwise subject to separate safety and soundness examinations, consumer compliance examinations, and information technology and cybersecurity examinations, the National Credit Union Administration shall, upon request of the insured credit union, combine two or three such examinations, as specified by the insured credit union, and carry them out at the same time.
Paragraph (1) shall not apply to an insured credit union if the insured credit union is currently subject to a formal enforcement proceeding or order by the National Credit Union Administration.
Not later than 12 months after the date of enactment of this subsection, the National Credit Union Administration shall issue rules to carry out paragraph (1), including, with respect to an insured credit union described under paragraph (1), to—
establish procedures for the limited-scope examinations described in paragraph (1)(A);
establish procedures for reviewing insured credit unions that—
experience material changes in financial condition or operational risk profile between scheduled examinations; or
have failed to comply with Federal or State banking laws and regulations; and
balance the goals of streamlining the examination cycle for individual insured credit unions and reducing unnecessary regulatory burdens while maintaining sufficient oversight to ensure the continued safety and soundness of the insured credit unions and compliance with all applicable laws and regulations.
Nothing in this subsection may be construed to limit the authority of the National Credit Union Administration to conduct off-site monitoring, targeted reviews, or additional full-scope, on-site examinations of an insured credit union if the National Credit Union Administration determines such monitoring, reviews, or examinations are necessary to ensure safety and soundness or compliance with applicable laws.
In this paragraph:
The term consumer compliance examination means an examination to assess compliance with the requirements of Federal consumer financial law (as such term is defined in section 1002 of the Consumer Financial Protection Act of 2010).
The term well capitalized has the meaning given that term in section 216(c).
With respect to an insured credit union, the term well managed means that, when the credit union was most recently examined by the National Credit Union Administration, the credit union was found to be well managed, and the credit union’s composite condition was found to be satisfactory or outstanding.
Section 10(d) of the Federal Deposit Insurance Act (12 U.S.C. 1820(d)), as amended by subsection (a)(1), is further amended by adding at the end the following:
With respect to on-site examination of an insured depository institution with less than $6,000,000,000 in total assets, the appropriate Federal banking agency shall—
ensure the examination is led by, to the maximum extent practicable, an examiner with significant experience as an examiner;
make every effort, to the maximum extent practicable, to minimize the number of examiners utilized and the amount of time spent at the institution to carry out the examination;
make every effort, to the maximum extent practicable, to schedule the examination at a time that is convenient for the institution; and
to the maximum extent practicable, give the institution advance notice of issues expected to be covered in the examination.
In its annual report to Congress, each Federal banking agency shall include—
information on how the agency is complying with paragraphs (11) and (12); and
aggregate data summarizing the agency’s examination practices with respect to insured depository institutions with less than $6,000,000,000 in total assets, including—
the average experience of examiners, including the average number of years of examiner experience of those who lead on-site examinations;
the average number of examiners utilized; and
the average amount of time the agency spends visiting such institutions for on-site examinations.
Section 204 of the Federal Credit Union Act (12 U.S.C. 1784), as amended by subsection (a)(2), is further amended by adding at the end the following:
With respect to on-site examination of an insured credit union with less than $6,000,000,000 in total assets, the National Credit Union Administration shall—
ensure the examination is led by, to the maximum extent practicable, an examiner with significant experience as an examiner;
make every effort, to the maximum extent practicable, to minimize the number of examiners utilized and the amount of time spent at the credit union to carry out the examination;
make every effort, to the maximum extent practicable, to schedule the examination at a time that is convenient for the credit union; and
to the maximum extent practicable, give the credit union advance notice of issues expected to be covered in the examination.
In its annual report to Congress, the National Credit Union Administration shall include—
information on how the Administration is complying with subsections (h) and (i); and
aggregate data summarizing the Administration’s examination practices with respect to insured credit unions with less than $6,000,000,000 in total assets, including—
the average experience of examiners, including the average number of years of examiner experience of those who lead on-site examinations;
the average number of examiners utilized; and
the average amount of time the Administration spends visiting such credit unions for on-site examinations.
Section 10(d) of the Federal Deposit Insurance Act (12 U.S.C. 1820(d)) is amended—
in paragraph (4)(A), by striking $3,000,000,000 and inserting $6,000,000,000; and
in paragraph (10), by striking $3,000,000,000 and inserting $6,000,000,000.
Congress finds that—
the primary objective of financial regulation and supervision by the Federal banking agencies is to promote safety and soundness of depository institutions;
all federally legal businesses and law-abiding citizens regardless of political ideology should have equal opportunity to obtain financial services and should not face unlawful discrimination in obtaining such services;
financial service providers are private entities entitled to provide services to whichever customers they so choose, provided that those decisions do not violate the law;
financial service providers should strive to ensure that all business decisions are based on factors free from unlawful prejudice or political influence;
the use of reputational risk in supervisory frameworks encourages Federal banking agencies to regulate depository institutions based on the subjective view of negative publicity and provides cover for the agencies to implement their own political agenda unrelated to the safety and soundness of a depository institution;
Federal banking agencies have in fact used reputational risk to limit access of federally legal businesses and law-abiding citizens to financial services in 2018 when the Federal Deposit Insurance Corporation acknowledged that the agency used reputational risk reviews to limit access to financial services by certain industries, commonly known as Operation Choke Point; and
reputational risk does not appear in any statute and is an unnecessary and improper use of supervisory authority that does not contribute to the safety and soundness of the financial system.
In this section:
The term depository institution—
has the meaning given the term in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813);
includes a depository institution holding company, as such term is defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813); and
includes an insured credit union, as such term is defined in section 101 of the Federal Credit Union Act (12 U.S.C. 1752).
The term Federal banking agency—
has the meaning given the term in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813); and
includes—
the National Credit Union Administration; and
the Bureau of Consumer Financial Protection.
The term foreign terrorist organization means a foreign organization that is designated by the Secretary of State in accordance with section 219 of the Immigration and Nationality Act (8 U.S.C. 1189).
The term reputational risk means the potential that negative publicity or negative public opinion regarding a depository institution’s business practices, whether true or not, will cause a decline in confidence in the institution or a decline in the customer base, costly litigation, or revenue reductions or otherwise adversely impact the depository institution. The previous sentence does not apply to negative publicity or negative public opinion regarding an institution’s business practices where such practices involve unlawful transactions in connection with state sponsors of terrorism or foreign terrorist organizations.
The term state sponsors of terrorism means a country, the government of which has been determined by the Secretary of State to have repeatedly provided support for acts of international terrorism, for purposes of—
section 1754(c)(1)(A)(i) of the Export Control Reform Act of 2018 (50 U.S.C. 4813(c)(1)(A)(i));
section 620A of the Foreign Assistance Act of 1961 (22 U.S.C. 2371);
section 40(d) of the Arms Export Control Act (22 U.S.C. 2780(d)); or
any other provision of law.
Each Federal banking agency shall remove from any guidance, rule, examination manual, or similar document established by the agency any reference to reputational risk, or any term substantially similar, regarding the supervision of depository institutions such that reputational risk, or any term substantially similar, is no longer taken into consideration by the Federal banking agency when examining and supervising a depository institution.
No Federal banking agency may engage in any activity concerning or related to the regulation, supervision, or examination of the reputational risk, or any term substantially similar, or the management thereof, of a depository institution, including—
establishing any rule, regulation, requirement, standard, or supervisory expectation concerning or related to the reputational risk, or any term substantially similar, or the management thereof, of a depository institution whether binding or not;
conducting any examination, assessment, data collection, or other supervisory exercise concerning or related to reputational risk, or any term substantially similar, or the management thereof, of a depository institution;
issuing any examination finding, supervisory criticism, or other supervisory or examination communication concerning or related to reputational risk, or any term substantially similar, or the management thereof, of a depository institution;
making any supervisory ratings decision or determination that is based, in whole or in part, on any matter concerning or related to reputational risk, or any term substantially similar, or the management thereof, of a depository institution; and
taking any formal or informal enforcement action that is based, in whole or in part, on any matter concerning or related to reputational risk, or any term substantially similar, or the management thereof, of a depository institution.
Not later than 180 days after the date of enactment of this Act, each Federal banking agency shall submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives a report that—
confirms implementation of this section; and
describes any changes made to internal policies as a result of this section.
Section 2 of the Federal Deposit Insurance Act (12 U.S.C. 1812) is amended—
by striking Consumer Financial Protection Bureau each place such term appears and inserting Bureau of Consumer Financial Protection;
by amending subsection (a)(1)(C) to read as follows:
3 of whom shall be appointed by the President, by and with the advice and consent of the Senate, from among individuals who are citizens of the United States, 1 of whom shall have State bank supervisory experience, and separately 1 of whom shall have demonstrated primary experience working in or supervising depository institutions having less than $17,000,000,000 in total assets.
in subsection (c)—
in paragraph (1), by adding at the end the following: No individual may be appointed as a member for more than two terms.; and
by adding at the end the following:
Notwithstanding any other provision of this Act, no person shall serve as a member for more than twelve years in total.
The head of each financial agency shall include a guidance clarity statement as described in subsection (b) on any guidance issued by that financial agency on and after the date of the enactment of this Act.
A guidance clarity statement required under subsection (a) shall be displayed prominently on the first page of the document and shall include the following: This guidance does not have the force and effect of law and therefore does not establish any rights or obligations for any person and is not binding on the agency or the public. If this guidance suggests how regulated entities may comply with applicable statutes or regulations, noncompliance with this guidance does not conclusively establish a violation of applicable law..
In this section:
The term financial agency means the following:
The Bureau of Consumer Financial Protection.
The Department of Housing and Urban Development.
The Department of the Treasury.
The Federal Deposit Insurance Corporation.
The Federal Housing Finance Agency.
The Board of Governors of the Federal Reserve System.
The National Credit Union Administration.
The Office of the Comptroller of the Currency.
The Securities and Exchange Commission.
The term guidance means a financial agency statement of general applicability, intended to have a future effect on the behavior of regulated parties, that sets forth a policy on a statutory, regulatory, or technical issue, or an interpretation of a statute or regulation, but does not include—
a rule promulgated pursuant to notice and comment under section 553 of title 5, United States Code;
a rule exempt from rulemaking requirements under section 553(a) of title 5, United States Code;
a rule of financial agency organization, procedure, or practice under section 553(b)(A) of title 5, United States Code;
a decision of a financial agency adjudication under section 554 of title 5, United States Code, or any similar statutory provision;
internal guidance directed to the issuing financial agency or other agency that is not intended to have a substantial future effect on the behavior of regulated parties; or
internal executive branch legal advice or legal opinions addressed to executive branch officials.
Section 2222 of the Economic Growth and Regulatory Paperwork Reduction Act of 1996 (12 U.S.C. 3311) is amended—
by striking appropriate Federal banking agency each place such term appears and inserting Federal financial institutions regulatory agency;
by striking appropriate Federal banking agencies and inserting Federal financial institutions regulatory agencies;
in subsection (a)—
by striking represented on the Council; and
by striking once every 10 years and inserting once every 8 years;
in subsection (b)—
by redesignating paragraphs (1) and (2) as subparagraphs (A) and (B), respectively (and adjusting the margins accordingly);
by striking In conducting and inserting the following:
In conducting
by adding at the end the following:
Each Federal financial institutions regulatory agency shall conduct an internal review of the cumulative impact of regulations issued by the Federal financial institutions regulatory agency that—
assesses the effects of such regulations on consumers’ access to financial products and services;
assesses the effects of such regulations on the availability of financial products and services to financial and nonfinancial firms;
assesses the impact of such regulations on credit availability and financial market liquidity in United States financial markets;
assesses the balance of benefits and costs of such regulations with respect to the safety and soundness of the United States financial system and overall economic activity in the United States;
to the extent practicable, quantifies the direct and indirect economic costs imposed by such regulations; and
includes recommendations to streamline or eliminate duplicative, outdated, and unnecessarily burdensome regulations.
in subsection (c)—
by striking subsection (b)(2) and inserting subsection (b)(1)(B), and the internal review under subsection (b)(2),; and
by striking once every 10 years and inserting once every 8 years;
in subsection (e)—
in paragraph (1), by striking and at the end;
by redesignating paragraph (2) as paragraph (3);
by inserting after paragraph (1) the following:
a summary of the findings and determinations of each Federal financial institutions regulatory agency of the internal review conducted by the Federal financial institutions regulatory agency under subsection (b)(2); and
in paragraph (3), as so redesignated, by striking the regulatory burdens associated with such issues by regulation and inserting the regulatory burdens associated with the issues identified by public comments received by the Council and the Federal financial institutions regulatory agencies, as well as the regulatory burdens identified by each Federal financial institutions regulatory agency through the internal reviews conducted under subsection (b)(2), by regulation; and
by adding at the end the following:
The term Federal financial institutions regulatory agency has the meaning given that term in section 1003 of the Federal Financial Institutions Examination Council Act of 1978 (12 U.S.C. 3302).
The seventh undesignated paragraph of section 10 of the Federal Reserve Act (12 U.S.C. 247) is amended—
by striking The Board and inserting the following:
The Board
by striking the second sentence; and
by adding at the end the following:
The report required under subparagraph (A) shall include a description of the Board’s interactions with global financial regulatory or supervisory forums, including—
a description of the financial regulatory or supervisory standard-setting issues under discussion at the global financial regulatory or supervisory forums during the period covered by the report;
a description of the rationale, objectives, and potential effects that rules proposed, rules under consideration, final rules adopted, guidance proposed, guidance under consideration, final guidance adopted, or any other similar actions discussed at the global financial regulatory or supervisory forums could have, including an economic impact analysis on whether the expected costs would be at least offset by the expected benefits related to economic, national security, financial stability, or other national interests;
a description of the positions taken by representatives of the Board at the global financial regulatory or supervisory forums during the period covered by the report; and
a description of the efforts by the Board to increase transparency at global financial regulatory or supervisory forums during the period covered by the report.
In this paragraph, the term global financial regulatory or supervisory forum means any association or union of nations through or by which two or more foreign authorities engage in some aspect of their conduct of international affairs regarding financial supervision and regulation, including—
the Bank for International Settlements;
the Basel Committee on Banking Supervision;
the Financial Stability Board;
the International Association of Insurance Supervisors; and
the Network of Central Banks and Supervisors for Greening the Financial System.
The term global financial regulatory or supervisory forum does not include—
international financial institutions, as defined in section 1701(c)(2) of the International Financial Institutions Act (22 U.S.C. 262r(c)(2)); or
any international organization with respect to which the Board participates pursuant to a treaty to which the United States is a party.
The second section 333 of the Revised Statutes of the United States (12 U.S.C. 14; relating to an annual report) is amended to read as follows:
The Comptroller of the Currency shall make an annual report to Congress.
The report required under subsection (a) shall include a description of the Comptroller’s interactions with global financial regulatory or supervisory forums, including—
a description of the financial regulatory or supervisory standard-setting issues under discussion at the global financial regulatory or supervisory forums during the period covered by the report;
a description of the rationale, objectives, and potential effects that rules proposed, rules under consideration, final rules adopted, guidance proposed, guidance under consideration, final guidance adopted, or any other similar actions discussed at the global financial regulatory or supervisory forums could have, including an economic impact analysis on whether the expected costs would be at least offset by the expected benefits related to economic, national security, financial stability, or other national interests; and
a description of the positions taken by representatives of the Comptroller at the global financial regulatory or supervisory forums during the period covered by the report; and
a description of the efforts by the Comptroller to increase transparency at global financial regulatory or supervisory forums during the period covered by the report.
In this section, the term global financial regulatory or supervisory forum means any association or union of nations through or by which two or more foreign authorities engage in some aspect of their conduct of international affairs regarding financial supervision and regulation, including—
the Bank for International Settlements;
the Basel Committee on Banking Supervision;
the Financial Stability Board;
the International Association of Insurance Supervisors; and
the Network of Central Banks and Supervisors for Greening the Financial System.
The term global financial regulatory or supervisory forum does not include—
international financial institutions, as defined in section 1701(c)(2) of the International Financial Institutions Act (22 U.S.C. 262r(c)(2)); or
any international organization with respect to which the Comptroller participates pursuant to a treaty to which the United States is a party.
Chapter nine of title VII of the Revised Statutes of the United States is amended—
by redesignating the first section 333 (12 U.S.C. 14a; relating to data standards) as section 332;
by moving such section so as to appear after section 331; and
in the table of contents of such chapter, by amending the item relating to section 332 to read as follows:
Section 17(a) of the Federal Deposit Insurance Act (12 U.S.C. 1827(a)) is amended by striking paragraph (3) and inserting the following:
The report required under paragraph (1) shall include a description of the Corporation’s interactions with global financial regulatory or supervisory forums, including—
a description of the financial regulatory or supervisory standard-setting issues under discussion at the global financial regulatory or supervisory forums during the period covered by the report;
a description of the rationale, objectives, and potential effects that rules proposed, rules under consideration, final rules adopted, guidance proposed, guidance under consideration, final guidance adopted, or any other similar actions discussed at the global financial regulatory or supervisory forums could have, including an economic impact analysis on whether the expected costs would be at least offset by the expected benefits related to economic, national security, financial stability, or other national interests;
a description of the positions taken by representatives of the Corporation at the global financial regulatory or supervisory forums during the period covered by the report; and
a description of the efforts by the Corporation to increase transparency at global financial regulatory or supervisory forums during the period covered by the report.
In this subsection, the term global financial regulatory or supervisory forum means any association or union of nations through or by which two or more foreign authorities engage in some aspect of their conduct of international affairs regarding financial supervision and regulation, including—
the Bank for International Settlements;
the Basel Committee on Banking Supervision;
the Financial Stability Board;
the International Association of Insurance Supervisors; and
the Network of Central Banks and Supervisors for Greening the Financial System.
The term global financial regulatory or supervisory forum does not include—
international financial institutions, as defined in section 1701(c)(2) of the International Financial Institutions Act (22 U.S.C. 262r(c)(2)); or
any international organization with respect to which the Corporation participates pursuant to a treaty to which the United States is a party.
Paragraph (12) of section 10 of the Federal Reserve Act (12 U.S.C. 247b) is amended by inserting before the period at the end the following: and with respect to the conduct of interactions at global financial regulatory or supervisory forums (as defined in paragraph (7)(C)).
Section 10 of the Federal Reserve Act (12 U.S.C. 241 et seq.) is amended by inserting after paragraph (10) the following:
Not later than 60 days after the date of enactment of this paragraph, the Board of Governors shall commence a review of the discount window lending programs of the Federal reserve banks (the discount window), and shall complete such review not later than 240 days after the date of enactment of this paragraph.
The review required by subparagraph (A) shall include a consideration of—
the effectiveness of the discount window in providing liquidity to financial institutions, including in times of financial stress;
whether the technology infrastructure, including means of communications, are sufficient to support the timely provision of liquidity, including in times of financial stress;
the effectiveness of cybersecurity measures implemented with respect to discount window operations;
the effectiveness of communications between Federal reserve banks, financial institutions, the Board of Governors, the Federal Deposit Insurance Corporation, the Comptroller of the Currency, and the Secretary of the Treasury regarding discount window operations;
the effectiveness of the Board of Governors in providing oversight of the discount window and in ensuring consistent access to the discount window across the Federal Reserve System;
how the discount window interacts with other providers of liquidity, including the Federal Home Loan Banks, during both normal operations and times of financial distress;
the effectiveness of existing discount window operating hours and whether such hours should be expanded, taking into account the interaction between discount window operating hours and the operating hours of payment systems of the Federal reserve banks, such as the Fedwire Funds Service and FedNow Service;
the impact of mobile banking and instant communications technology on depositor behavior and liquidity risk posed to financial institutions, including how the discount window can—
help financial institutions better respond to rapid liquidity shortfalls; and
prevent broader financial instability; and
the effectiveness of the discount window in light of the stigma associated with its usage, ways to reduce such stigma, and ways to improve access, operational efficiency, transparency, and timeliness of the process for financial institutions seeking advances, including on the pricing and other terms of such advances.
After the Board of Governors completes the review required by subparagraph (A), the Board of Governors, in consultation with the Federal reserve banks, shall—
identify deficiencies with the discount window and areas for enhancing discount window effectiveness; and
develop a written plan to remediate the identified deficiencies and implement the identified enhancements, which shall include—
an identification of actions that will be taken to enhance discount window effectiveness and remediate identified deficiencies;
timelines and milestones for implementing the plan and measures to demonstrate how the implemented improvements will be maintained on an ongoing basis; and
measures of managing and controlling any deficiencies and current operations until the plan is implemented in full.
Not later than 365 days after the date of enactment of this paragraph, the Board of Governors shall submit a report to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate containing—
the findings of the review required by subparagraph (A); and
the remediation plan required by subparagraph (C).
Before submitting the report required by clause (i), the Board of Governors shall—
provide a copy of the proposed report to the Comptroller of the Currency, the Federal Deposit Insurance Corporation, and the Secretary of the Treasury; and
provide the Comptroller of the Currency, the Federal Deposit Insurance Corporation, and the Secretary of the Treasury with an opportunity to provide feedback on the report.
The Chairman of the Board of Governors shall, at the semi-annual hearing required under section 2B, testify with respect to the contents of the report required under this subparagraph.
The Board of Governors shall submit an annual report to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate containing a review of the effectiveness of discount window operations and a progress report on the actions taken to implement the identified enhancements described in subparagraph (C).
The Inspector General of the Board of Governors of the Federal Reserve System and the Bureau of Consumer Financial Protection shall submit an annual report to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate containing a report on the progress of the Board of Governors in implementing the remediation plan required by subparagraph (C).
Any report required under this paragraph may contain a confidential annex containing information that, if made public, could—
impact monetary policy, financial stability, or cybersecurity; or
significantly endanger the safety and soundness of any financial institution.
This paragraph shall be repealed on the date on which the Board of Governors notifies the Congress and publishes on a public website of the Board of Governors that the remediation plan required under subparagraph (C) has been fully implemented.
Section 29(i) of the Federal Deposit Insurance Act (12 U.S.C. 1831f(i)) is amended by striking paragraph (1) and inserting the following:
The sum of the following amounts of reciprocal deposits of an agent institution shall not be considered to be funds obtained, directly or indirectly, by or through a deposit broker:
An amount equal to 50 percent of the portion of the total liabilities of the agent institution that is less than or equal to $1,000,000,000.
An amount equal to 40 percent of the portion, if any, of the total liabilities of the agent institution that is greater than $1,000,000,000, but less than or equal to $10,000,000,000.
An amount equal to 30 percent of the portion, if any, of the total liabilities of the agent institution that is greater than $10,000,000,000, but less than or equal to $250,000,000,000.
Section 29(i) of the Federal Deposit Insurance Act (12 U.S.C. 1831f(i)) is amended—
in paragraph (2)(A)—
in clause (i), by striking subclause (I) and inserting the following:
when most recently examined under section 10(d) was assigned a CAMELS rating of 1, 2, or 3 under the Uniform Financial Institutions Rating System (or an equivalent rating under a comparable rating system); and
by redesignating clauses (ii) and (iii) as clauses (iii) and (iv), respectively; and
by inserting after clause (i) the following:
has not yet been examined under section 10(d) and the deposits of which first became insured under this Act during the current calendar year or during the immediately preceding calendar year;
by adding at the end the following:
If an insured depository institution ceases to be an agent institution because it no longer satisfies any of the criteria in paragraph (2)(A), the Corporation may, on a case-by-case basis and upon application, provide a waiver to permit the institution to continue to consider some or all of the deposits previously subject to the exception under paragraph (1) as continuing to be subject to the exception under paragraph (1), for a specific or indefinite period of time, if the Corporation determines that failure to grant such a waiver would negatively impact the safety and soundness of the insured depository institution.
The Federal Deposit Insurance Corporation, in consultation with the Board of Governors of the Federal Reserve System, shall carry out a study on reciprocal deposits.
The study required under paragraph (1) shall include—
an analysis of how reciprocal deposits have performed since 2018, which shall include—
the use of quantitative and qualitative data;
a breakdown of the usage of reciprocal deposits by size of insured depository institution;
the usage of reciprocal deposits during periods of stress; and
an analysis, to the extent practicable, of end-user depositors, such as municipalities, businesses, and non-profit organizations, that drive demand for reciprocal products;
an analysis, to the extent practicable, of how reciprocal deposits compare to other deposit arrangements; and
an analysis of the benefits and potential risks of reciprocal deposits.
Not later than 6 months after the date of enactment of this Act, the Federal Deposit Insurance Corporation shall issue a report to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate containing all findings and determinations made in carrying out the study required under paragraph (1).
Section 29 of the Federal Deposit Insurance Act (12 U.S.C. 1831f) is amended by adding at the end the following:
Custodial deposits of an eligible institution shall not be considered to be funds obtained, directly or indirectly, by or through a deposit broker to the extent that the total amount of such custodial deposits does not exceed an amount equal to 20 percent of the total liabilities of the eligible institution.
If an insured depository institution ceases to be an eligible institution because it no longer satisfies any of the criteria in paragraph (3)(B), the Corporation may, on a case-by-case basis and upon application, provide a waiver to permit the institution to continue to be treated as an eligible institution for purposes of paragraph (1), for a specific or indefinite period of time, if the Corporation determines that failure to grant such a waiver would negatively impact the safety and soundness of the insured depository institution.
In this subsection:
The term custodial deposit means a deposit that is not deposited at an insured depository institution in return for fees paid by the insured depository institution pursuant to an agreement with a third party and that would otherwise be considered to be obtained, directly or indirectly, by or through a deposit broker, if the deposit is deposited at 1 or more insured depository institutions, for the purpose of providing or maintaining deposit insurance for the benefit of a third party, by or through any of the following, each acting in a formal custodial or fiduciary capacity for the benefit of a third party:
An insured depository institution serving as agent, trustee, or custodian.
A trust entity controlled by an insured depository institution serving as agent, trustee, or custodian.
A State-chartered trust company serving as agent, trustee, or custodian.
A plan administrator or investment advisor, acting in a formal custodial or fiduciary capacity for the benefit of a plan.
The term eligible institution means an insured depository institution that accepts custodial deposits, if the insured depository institution has less than $10,000,000,000 in total assets as reported on the consolidated report of condition and income as reported quarterly to the appropriate Federal banking agency and—
when most recently examined under section 10(d) was assigned a composite rating of 1, 2, or 3 under the Uniform Financial Institutions Rating System (or an equivalent rating under a comparable rating system); and
is well capitalized;
has not yet been examined under section 10(d) and the deposits of which first became insured under this Act during the current calendar year or during the immediately preceding calendar year; or
has obtained a waiver pursuant to subsection (c).
The term plan has the meaning given the term in section 3 of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1002).
The term plan administrator has the meaning given the term administrator in section 3 of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1002).
The term well capitalized has the meaning given the term in section 38(b).
Section 29 of the Federal Deposit Insurance Act (12 U.S.C. 1831f), as amended by subsection (a), is further amended by adding at the end the following:
In this subsection—
the terms custodial deposit, eligible institution, and well capitalized have the meanings given those terms in subsection (j); and
the term covered insured depository institution means an insured depository institution that while acting as an eligible institution under subsection (j), accepts custodial deposits while not well capitalized.
A covered insured depository institution may not pay a rate of interest on custodial deposits that are accepted while not well capitalized that, at the time the funds or custodial deposits are accepted, significantly exceeds the limit set forth in paragraph (3).
The limit on the rate of interest referred to in paragraph (2) shall be not greater than—
the rate paid on deposits of similar maturity in the normal market area of the covered insured depository institution for deposits accepted in the normal market area of the covered insured depository institution; or
the national rate paid on deposits of comparable maturity, as established by the Corporation, for deposits accepted outside the normal market area of the covered insured depository institution.
Section 18(c) of the Federal Deposit Insurance Act (12 U.S.C. 1828(c)), as amended by section 604(c), is further amended—
in paragraph (4)(C)—
in clause (i), by striking or at the end;
in clause (ii), by striking the period at the end and inserting ; or; and
by adding at the end the following:
the proposed merger transaction would result in an entity with less than $10,000,000,000 in assets.
by adding at the end the following:
Notwithstanding paragraph (5), if a proposed merger transaction would result in an institution with less than $10,000,000,000 in assets, then the responsible agency shall not consider whether such merger transaction would—
result in a monopoly, or would be in furtherance of any combination or conspiracy to monopolize or to attempt to monopolize the business of banking in any part of the United States; and
have the effect in any section of the country of substantially lessening competition, tending to create a monopoly, or in any other manner restraining trade.
At the end of each year for which the nominal gross domestic product of the United States increases (a covered year), the Corporation shall adjust the dollar figures described in subparagraph (A) and paragraph (4)(C)(iii) by a percentage equal to the percentage increase (if any) between—
the nominal gross domestic product of the United States for the year, during the preceding 5 years, with respect to which the nominal gross domestic product of the United States was the highest; and
the nominal gross domestic product of the United States for the covered year.
In this paragraph, the Corporation shall use nominal gross domestic product statistics determined by the Bureau of Economic Analysis.
Section 3(c) of the Bank Holding Company Act of 1956 (12 U.S.C. 1842(c)) is amended by adding at the end the following:
Notwithstanding paragraph (1), if a proposed acquisition, merger, or consolidation under this section would result in a company with less than $10,000,000,000 in assets, then the Board shall not consider whether such acquisition, merger, or consolidation would—
result in a monopoly, or would be in furtherance of any combination or conspiracy to monopolize or to attempt to monopolize the business of banking in any part of the United States; and
have the effect in any section of the country of substantially lessening competition, tending to create a monopoly, or in any other manner restraining trade.
At the end of each year for which the nominal gross domestic product of the United States increases (a covered year), the Board shall adjust the dollar figure described in subparagraph (A) by a percentage equal to the percentage increase (if any) between—
the nominal gross domestic product of the United States for the year, during the preceding 5 years, with respect to which the nominal gross domestic product of the United States was the highest; and
the nominal gross domestic product of the United States for the covered year.
In this paragraph, the Board shall use nominal gross domestic product statistics determined by the Bureau of Economic Analysis.
Section 10(e) of the Home Owners’ Loan Act (12 U.S.C. 1467a(e)), as amended by section 103(b), is further amended by adding at the end the following:
Notwithstanding subparagraphs (A) and (B) of paragraph (2), if a proposed transaction under this section would result in a company with less than $10,000,000,000 in assets, then the Board shall not consider whether the transaction would—
result in a monopoly, or would be in furtherance of any combination or conspiracy to monopolize or to attempt to monopolize the savings and loan business in any part of the United States; and
have the effect in any section of the country of substantially lessening competition, tending to create a monopoly, or in any other manner restraining trade.
At the end of each year for which the nominal gross domestic product of the United States increases (a covered year), the Board shall adjust the dollar figure described in subparagraph (A) by a percentage equal to the percentage increase (if any) between—
the nominal gross domestic product of the United States for the year, during the preceding 5 years, with respect to which the nominal gross domestic product of the United States was the highest; and
the nominal gross domestic product of the United States for the covered year.
In this paragraph, the Board shall use nominal gross domestic product statistics determined by the Bureau of Economic Analysis.
The Comptroller General of the United States shall carry out a study on the use of commitments, conditions, and other aspects of merger review procedures by Federal depository institution regulatory agencies in connection with insured depository institution merger applications. The study shall—
include an evaluation of relevant quantifiable metrics;
review the extent to which the use of commitments and conditions has aligned with statutory requirements, including a review of whether the use of commitments and conditions has been influenced by extrastatutory issues or considerations;
consider the benefits and risks of utilizing different merger review approaches and procedures in compliance with the law; and
include an evaluation of the impact of such merger review procedures and resulting approved mergers on safety and soundness, financial stability, competition, and the availability of financial products and services offered by insured depository institutions.
Not later than 1 year after the date of enactment of this Act, the Comptroller General shall issue a report to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate containing all findings and determinations made in carrying out the study required under subsection (a).
In this section:
The term application means an application, notice, or other similar request for permission submitted to a Federal depository institution regulatory agency.
The term Federal depository institution regulatory agency means the Board of Governors of the Federal Reserve System, the Comptroller of the Currency, the Federal Deposit Insurance Corporation, and the National Credit Union Administration Board.
The term insured depository institution—
has the meaning given that term in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813); and
means an insured credit union, as defined in section 101 of the Federal Credit Union Act (12 U.S.C. 1752).
The term insured depository institution merger application means an application with respect to the acquisition of an insured depository institution, its equity interests, its assets, or its deposits under—
section 10(e) of the Home Owners’ Loan Act (12 U.S.C. 1467a(e));
section 205(b) of the Federal Credit Union Act (12 U.S.C. 1785(b));
section 7(j) of the Federal Deposit Insurance Act (12 U.S.C. 1817(j));
section 18(c)(2) of the Federal Deposit Insurance Act (12 U.S.C. 1828(c)(2));
section 3 of the Bank Holding Company Act of 1956 (12 U.S.C. 1842); and
section 4 of the Bank Holding Company Act of 1956 (12 U.S.C. 1843).
Not later than 1 year after the date of enactment of this Act, and every 3 years thereafter, the Inspector General of each Federal depository institution regulatory agency shall review the Federal depository institution regulatory agency’s merger review procedures, including record of timeliness and efficiency in reviewing and acting upon insured depository institution merger applications. The review shall—
include an evaluation of relevant quantifiable metrics, including mean and median application processing times;
identify sources of delay that may hinder the timely consummation of proposals that meet the relevant statutory factors;
consider the benefits and risks of utilizing different merger review approaches and procedures in compliance with the law;
include an evaluation of the impact of such merger review procedures and resulting approved mergers on safety and soundness, financial stability, competition, and the availability of financial products and services offered by insured depository institutions; and
include specific recommendations to improve the merger review process, including timeliness and efficiency of application processing, consistent with the Federal depository institution regulatory agency’s statutory responsibilities.
Each Inspector General described under subsection (a) shall, at the conclusion of each review required under subsection (a), issue a report to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate containing all findings and determinations made in carrying out the review, and publish such report online.
In response to each report issued under subsection (a), the appropriate Federal depository institution regulatory agency shall submit to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate and publish online a written response, including a plan to implement the recommendations in the report, to the extent such implementation is appropriate.
In this section:
The term application means an application, notice, or other similar request for permission submitted to a Federal depository institution regulatory agency.
The term Federal depository institution regulatory agency means the Board of Governors of the Federal Reserve System, the Comptroller of the Currency, the Federal Deposit Insurance Corporation, and the National Credit Union Administration Board.
The term insured depository institution—
has the meaning given that term in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813); and
means an insured credit union, as defined in section 101 of the Federal Credit Union Act (12 U.S.C. 1752).
The term insured depository institution merger application means an application with respect to the acquisition of an insured depository institution, its equity interests, its assets, or its deposits under—
section 10(e) of the Home Owners’ Loan Act (12 U.S.C. 1467a(e));
section 205(b) of the Federal Credit Union Act (12 U.S.C. 1785(b));
section 7(j) of the Federal Deposit Insurance Act (12 U.S.C. 1817(j));
section 18(c)(2) of the Federal Deposit Insurance Act (12 U.S.C. 1828(c)(2));
section 3 of the Bank Holding Company Act of 1956 (12 U.S.C. 1842); and
section 4 of the Bank Holding Company Act of 1956 (12 U.S.C. 1843).
Section 3(b)(1) of the Bank Holding Company Act of 1956 (12 U.S.C. 1842(b)(1)) is amended—
by striking Upon receiving and inserting the following:
Upon receiving
by striking required and inserting acquired;
by striking In the event of the failure of the Board to act on any application for approval under this section within the ninety-one-day period which begins on the date of submission to the Board of the complete record on that application, the application shall be deemed to have been granted.; and
by adding at the end the following:
Not later than 30 days after the date on which the Board receives an application for approval under this section, the Board shall transmit to the applicant a letter that either—
confirms the record on the application is complete; or
details all additional information that is required for the record on that application to be complete.
Notwithstanding clause (i), the Board may, if an application is complex, extend the 30-day period described under clause (i) for an additional 30 days.
Upon receipt of a response from an applicant to a notice requesting additional information described under clause (i)(II), the record on the application shall be deemed complete unless the Board—
determines that the applicant’s response was materially deficient; and
not later than 30 days after the date on which the Board received the response, provides the applicant a detailed notice describing the deficiencies.
In determining whether the record on an application is complete, the Board may take into account only information provided by the applicant, and may not base the determination of completeness on any information (including reports, views, or recommendations) provided by third parties.
Notwithstanding subparagraphs (A) and (B), the Board shall grant or deny an application submitted under this section not later than 120 days after the date on which the application was initially submitted to the Board, regardless of whether the record on such initial application was complete.
If the Board does not grant or deny an application within the time period described under clause (i), such application shall be deemed to have been granted.
The Board may at any time extend the deadline described under clause (i) at the request of the applicant, but may not extend the deadline more than 30 days past the deadline described under clause (i).
Section 10(e) of the Home Owners’ Loan Act (12 U.S.C. 1467a(e)) is amended—
in paragraph (2), by striking , and shall render a decision within 90 days after submission to the Board of the complete record on the application;
by redesignating paragraph (7) as paragraph (9); and
by inserting after paragraph (6) the following:
Not later than 30 days after the date on which the Board receives an application for approval under this subsection, the Board shall transmit to the applicant a letter that either—
confirms the record on the application is complete; or
details all additional information that is required for the record on that application to be complete.
Notwithstanding subparagraph (A), the Board may, if an application is complex, extend the 30-day period described under subparagraph (A) for an additional 30 days.
Upon receipt of a response from an applicant to a notice requesting additional information described under subparagraph (A)(ii), the record on the application shall be deemed complete unless the Board—
determines that the applicant’s response was materially deficient; and
not later than 30 days after the date on which the Board received the response, provides the applicant a detailed notice describing the deficiencies.
In determining whether the record on an application is complete, the Board may take into account only information provided by the applicant, and may not base the determination of completeness on any information (including reports, views, or recommendations) provided by third parties.
Notwithstanding any other provision of this subsection, the Board shall grant or deny an application submitted under this subsection not later than 120 days after the date on which the application was initially submitted to the Board, regardless of whether the record on such initial application was complete.
If the Board does not grant or deny an application within the time period described under subparagraph (A), such application shall be deemed to have been granted.
The Board may at any time extend the deadline described under subparagraph (A) at the request of the applicant, but may not extend the deadline more than 30 days past the deadline described under subparagraph (A).
Section 18(c) of the Federal Deposit Insurance Act (12 U.S.C. 1828(c)) is amended by adding at the end the following:
Not later than 30 days after the date on which the responsible agency receives a merger application for approval under this subsection, the responsible agency shall transmit to the applicant a letter that either—
confirms the record on the application is complete; or
details all additional information that is required for the record on that application to be complete.
Notwithstanding subparagraph (A), the responsible agency may, if an application is unusually complex, extend the 30-day period described under subparagraph (A) for an additional 30 days.
Upon receipt of a response from an applicant to a notice requesting additional information described under subparagraph (A)(ii), the record on the application shall be deemed complete unless the responsible agency—
determines that the applicant’s response was materially deficient; and
not later than 30 days after the date on which the responsible agency received the response, provides the applicant a detailed notice describing the deficiencies.
In determining whether the record on an application is complete, the responsible agency may take into account only information provided by the applicant, and may not base the determination of completeness on any information (including reports, views, or recommendations) provided by third parties.
Notwithstanding any other provision of this subsection, the responsible agency shall grant or deny a merger application submitted under this subsection not later than 120 days after the date on which the application was initially submitted to the responsible agency, regardless of whether the record on such initial application was complete.
If the responsible agency does not grant or deny an application within the time period described under subparagraph (A), such application shall be deemed to have been granted.
The responsible agency may at any time extend the deadline described under subparagraph (A) at the request of the applicant, but may not extend the deadline more than 30 days past the deadline described under subparagraph (A).
Section 13(c)(4) of the Federal Deposit Insurance Act (12 U.S.C. 1823(c)(4)) is amended—
in subparagraph (A)(ii), by inserting except as provided in subparagraph (I), before the total amount;
in subparagraph (E)(i), by inserting and except as provided in subparagraph (I), after appropriate,; and
by adding at the end the following:
With respect to an exercise of authority by the Corporation described in subparagraph (A), the Corporation may, at the discretion of the Corporation, select an alternative method of exercising such authority that is not the least costly to the Deposit Insurance Fund, if—
the Corporation determines that the selected alternative complies with the requirements of clause (iii); and
the Corporation and the Board of Governors of the Federal Reserve System, after consultation with the Secretary of the Treasury, determine that the potential additional risks to the Deposit Insurance Fund of the selected alternative are outweighed by the reasonably expected benefits of limiting further concentration of the United States banking system in global systemically important banking organizations.
Not later than 1 year after the date of enactment of this subparagraph, the Corporation, by rule, shall establish criteria for determining on a case-by-case basis the maximum allowable cost against the net worth of the Deposit Insurance Fund that may be utilized to account for any determination under clause (i).
The requirements for the selected alternative described in clause (i) are as follows:
The selected alternative is least costly to the Deposit Insurance Fund of all alternatives that do not involve a transaction with a global systemically important banking organization and that do not exceed the cost of liquidating the insured depository institution.
The difference between the cost of the selected alternative and the cost of a covered alternative is less than or equal to the maximum cost to the Deposit Insurance Fund specified pursuant to the rule adopted under clause (ii).
In the case of a selected alternative that involves another person purchasing assets of the insured depository institution or assuming deposit liabilities of the insured depository institution, such person agrees to pay an assessment to the Corporation comprised of payments—
made over a period to be determined by the Corporation, but which may not be less than 5 years; and
in an amount that takes into account, on a case-by-case basis, criteria the Corporation, by rule, shall establish, including a realistic discount rate, the aggregate amount equal to the difference calculated in subclause (II), and any bid inconsistent with the purposes of this Act, with such rule to be established by the Corporation not later than 1 year after the date of enactment of this subparagraph.
Not later than 30 days after selecting an alternative described in clause (i), the Corporation shall issue a report to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate containing an analysis of the economic difference between the cost to the Deposit Insurance Fund of the selected alternative and the cost to the Deposit Insurance Fund of the least costly alternative that would have been selected absent the application of this subparagraph.
All cost determinations required under this subparagraph shall be made in accordance with subparagraphs (B) and (C).
In this subparagraph:
The term covered alternative means a method of exercising authority described in subparagraph (A) that is the least costly to the Deposit Insurance Fund of all such methods that involve a sale of all or substantially all assets of the insured depository institution to, and assumption of all or substantially all deposit liabilities of the insured depository institution by, a global systemically important banking organization.
The term global systemically important banking organization means a global systemically important BHC (as such term is defined in section 217.402 of title 12, Code of Federal Regulations, or any successor thereto) and any affiliate thereof.
Section 13(c)(4)(H) of the Federal Deposit Insurance Act (12 U.S.C. 1823(c)(4)(H)) does not apply to the amendments made by subsection (a).
The Comptroller of the Currency, the Federal Deposit Insurance Corporation, and the Board of the Governors of the Federal Reserve System shall, jointly, carry out a study of—
the use by the Comptroller of the Currency of shelf charters, including all conditional or preliminary shelf charter approvals granted between January 1, 2008, and the date of enactment of this Act;
the use by the Federal Deposit Insurance Corporation of the modified bidder qualification process;
the application of the Bank Holding Company Act of 1956 (12 U.S.C. 1841 et seq.) and section 10 of the Home Owners’ Loan Act (12 U.S.C. 1467a) to shelf charter proposals;
whether shelf charters and modified bidder qualification processes were considered or used in connection with the receivership of any insured depository institution for which the Federal Deposit Insurance Corporation was appointed receiver in 2023;
with respect to such receiverships, the extent to which greater use of shelf charters and modified bidder qualification processes could have—
expanded the pool of participants in the acquisition of the assets or liabilities of such failed insured depository institutions;
resulted in greater competition and diversity in market outcomes;
protected the Deposit Insurance Fund; or
strengthened financial stability and reduced the need for any emergency determination by the Secretary of the Treasury under section 13(c)(4)(G) of the Federal Deposit Insurance Act (12 U.S.C. 1823(c)(4)(G)) with respect to any such receivership;
the impact of the use of shelf charters and modified bidder qualification processes since January 1, 2008, including on financial stability, the safety and soundness of affected insured depository institutions, and the availability of financial products and services provided to consumers by such institutions; and
any benefits and risks of private equity ownership of banks through the use of shelf charters and modified bidder qualification processes.
Not later than 1 year after the date of enactment of this Act, the Comptroller of the Currency, the Federal Deposit Insurance Corporation, and the Board of the Governors of the Federal Reserve System shall, jointly, submit a report to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate containing—
all findings and determinations made in carrying out the study required under subsection (a); and
an identification of statutory or regulatory barriers to the use and effectiveness of shelf charters and modified bidder qualification processes in the resolution of failed insured depository institutions, including recommendations for legislative and regulatory changes.
In this section:
The term insured depository institution has the meaning given the term in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813).
The term modified bidder qualification process has the meaning given such term in the press release of the Federal Deposit Insurance Corporation titled FDIC Expands Bidder List for Troubled Institutions Plan Allows Those Without a Bank Charter to Participate in the Process published November 26, 2008.
The term shelf charter has the meaning given such term in the report issued by the Comptroller of the Currency titled Activities Permissible for National Banks and Federal Savings Associations, Cumulative published October 2017.
The Federal Deposit Insurance Act (12 U.S.C. 1811 et seq.) is amended—
in section 18(c)(13)—
by amending subparagraph (B) to read as follows:
Subparagraph (A) shall not apply to an interstate merger transaction if—
such interstate merger transaction involves 1 or more insured depository institutions in default or in danger of default and the responsible agency determines, based on clear and convincing evidence, that consummation of the proposed interstate merger transaction is necessary to prevent significant economic disruption or significant adverse effects on financial stability, and the Corporation has not received any qualified bid from a company that is not subject to the prohibition in subparagraph (A); or
the Corporation provides assistance under section 13 to facilitate such interstate merger transaction and the responsible agency determines, based on clear and convincing evidence, that consummation of the proposed interstate merger transaction is necessary to prevent significant economic disruption or significant adverse effects on financial stability, and the Corporation has not received any qualified bid from a company that is not subject to the prohibition in subparagraph (A).
in subparagraph (C)—
in clause (i), by striking and at the end;
in clause (ii), by striking the period at the end and inserting a semicolon; and
by adding at the end the following:
the term qualified bid means an application, proposed application, or bid from a company where—
if applicable, the company, any affiliate insured depository institution, and any affiliate depository institution holding company are well capitalized and well managed, as of the date of the application, proposed application, or bid; and
upon consummation of the transaction, the resulting insured depository institution is well capitalized;
the term well capitalized—
with respect to an insured depository institution, has the meaning given such term in section 38(b) (12 U.S.C. 1831o(b));
with respect to a bank holding company, has the meaning given such term in section 2(o)(1)(B) of the Bank Holding Company Act of 1956 (12 U.S.C. 1841(o)(1)(B));
with respect to a savings and loan holding company, has the meaning given such term in section 238.2 of title 12, Code of Federal Regulations; and
with respect to a company that is not an insured depository institution, bank holding company, or savings and loan holding company, means maintaining equity capital that the Corporation determines is commensurate with the capital maintained by an insured depository institution that is well capitalized; and
the term well managed has the meaning given such term in section 2(o)(9) of the Bank Holding Company Act of 1956 (12 U.S.C. 1841(o)(9)).
in section 44, by amending subsection (e) to read as follows:
The responsible agency may, without regard to paragraph (1), (3), (4), or (5) of subsection (b) or paragraph (2), (4), or (5) of subsection (a), approve an application under subsection (a)(1) for approval of a merger transaction if—
the merger transaction involves 1 or more banks in default or in danger of default; or
the Corporation provides assistance under section 13(c) to facilitate such merger transaction.
The responsible agency may, without regard to subsection (b)(2), approve an application under subsection (a)(1) for approval of a merger transaction if—
the merger transaction involves 1 or more banks in default or in danger of default and the responsible agency determines, based on clear and convincing evidence, that consummation of the proposed interstate merger transaction is necessary to prevent significant economic disruption or significant adverse effects on financial stability, and the Corporation has not received any qualified bid from another institution that is not subject to the prohibition in subsection (b)(2); or
the Corporation provides assistance under section 13(c) to facilitate such merger transaction and the responsible agency determines, based on clear and convincing evidence, that consummation of the proposed interstate merger transaction is necessary to prevent significant economic disruption or significant adverse effects on financial stability, and the Corporation has not received any qualified bid from another institution that is not subject to the prohibition in subsection (b)(2).
In this subsection, the term qualified bid has the meaning given that term in section 18(c)(13)(C).
The Bank Holding Company Act of 1956 (12 U.S.C. 1841 et seq.) is amended—
in section 3(d), by amending paragraph (5) to read as follows:
The Board may, without regard to subparagraph (B) or (D) of paragraph (1) or paragraph (3), approve an application pursuant to paragraph (1)(A) if—
the application is for an acquisition of 1 or more banks in default or in danger of default; or
the application is for an acquisition with respect to which assistance is provided under section 13(c) of the Federal Deposit Insurance Act.
The Board may, without regard to paragraph (2), approve an application pursuant to paragraph (1)(A) if—
the application is for the acquisition of 1 or more banks in default or in danger of default and the Board determines, based on clear and convincing evidence, that consummation of the proposed acquisition is necessary to prevent significant economic disruption or significant adverse effects on financial stability, and the Corporation has not received any qualified bid from another institution that is not subject to the prohibition in paragraph (2); or
the application is for an acquisition with respect to which assistance is provided under section 13(c) of the Federal Deposit Insurance Act and the Board determines, based on clear and convincing evidence, that consummation of the proposed acquisition is necessary to prevent significant economic disruption or significant adverse effects on financial stability, and the Corporation has not received any qualified bid from another institution that is not subject to the prohibition in paragraph (2).
In this paragraph, the term qualified bid has the meaning given that term in section 18(c)(13)(C) of the Federal Deposit Insurance Act.
in section 4(i)(8), by amending subparagraph (B) to read as follows:
Subparagraph (A) shall not apply to an acquisition if—
such acquisition involves an insured depository institution in default or in danger of default and the Board determines, based on clear and convincing evidence, that consummation of the proposed acquisition is necessary to prevent significant economic disruption or significant adverse effects on financial stability, and the Corporation has not received any qualified bid (as defined in section 18(c)(13)(C) of the Federal Deposit Insurance Act) from another institution that is not subject to the prohibition in paragraph (2); or
the Federal Deposit Insurance Corporation provides assistance under section 13 of the Federal Deposit Insurance Act to facilitate such acquisition and the Board determines, based on clear and convincing evidence, that consummation of the proposed acquisition is necessary to prevent significant economic disruption or significant adverse effects on financial stability, and the Corporation has not received any qualified bid (as defined in section 18(c)(13)(C) of the Federal Deposit Insurance Act) from another institution that is not subject to the prohibition in paragraph (2).
Section 14(c) of the Bank Holding Company Act of 1956 (12 U.S.C. 1852(c)) is amended—
by redesignating paragraphs (1), (2), and (3) as subparagraphs (A), (B), and (C), respectively;
by striking With the and inserting the following:
With the
by adding at the end the following:
The Board may provide written consent for an acquisition described in paragraph (1)(A) or in paragraph (1)(B) only if the Board determines, based on clear and convincing evidence, that consummation of the proposed acquisition is necessary to prevent significant economic disruption or significant adverse effects on financial stability, and the Corporation has not received any qualified bid (as defined in section 18(c)(13)(C) of the Federal Deposit Insurance Act) from another institution that is not subject to the prohibition in subsection (b).
Whenever the Board of Governors of the Federal Reserve System, the Comptroller of the Currency, or the Federal Deposit Insurance Corporation waives a concentration limit under section 18(c)(13)(B) or section 44(e) of the Federal Deposit Insurance Act or under section 3(d)(5), section 4(i)(8)(B), or section 14(c)(2) of the Bank Holding Company Act of 1956, in connection with the acquisition of a bank or insured depository institution in default or in danger of default, or in connection with an acquisition with respect to which the Federal Deposit Insurance Corporation provides assistance under section 13 of the Federal Deposit Insurance Act, the waiving agency and the Federal Deposit Insurance Corporation, jointly, shall, not later than 30 days after such waiver, submit a written report to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs in the Senate containing—
a justification for the waiver, including an analysis of why it was necessary to prevent significant economic disruption or significant adverse effects on financial stability;
a description of alternative bids or outcomes considered, including efforts to solicit and encourage bids from entities that would not require a waiver;
an explanation of why alternative bids were not selected, if applicable; and
any recommendations for legislative or regulatory changes to improve competition in future insured depository institution resolutions.
The waiving agency submitting a report under paragraph (1) and the Federal Deposit Insurance Corporation shall make the report publicly available on their respective websites, subject to redactions for confidential supervisory information and any other information described under section 552(b) of title 5, United States Code.
Section 13(c)(4) of the Federal Deposit Insurance Act (12 U.S.C. 1823(c)(4)), as amended by section 701(a)(3), is further amended by adding at the end the following:
In making a determination under this paragraph of whether an exercise of authority is the least costly to the Deposit Insurance Fund, the Corporation may not consider any application, proposed application, or bid from a company, if such application, proposed application, or bid would result in violation of—
section 18(c)(13) or 44(b)(2); or
section 3(d)(2), 4(i)(8), or 14 of the Bank Holding Company Act of 1956.
Section 13(c)(4)(G)(iv) of the Federal Deposit Insurance Act (12 U.S.C. 1823(c)(4)(G)(iv)) is amended to read as follows:
The Comptroller General of the United States shall, not later than 60 days after a determination is made under clause (i), and again 180 days thereafter, review and report to the Congress on the determination under clause (i), including—
the basis for the determination;
the purpose for which any action was taken pursuant to such clause;
the likely effect of the determination and such action on the incentives and conduct of insured depository institutions and uninsured depositors;
any mismanagement by the executives and board of the insured depository institution that contributed to the failure of the insured depository institution;
a review of the compensation practices of the insured depository institution;
any supervisory or regulatory shortcomings with respect to the appropriate Federal banking agency of the insured depository institution;
any actions taken by the Federal banking regulators, Financial Stability Oversight Council, Department of the Treasury, and other relevant financial regulators in relation to the failure of the insured depository institution; and
any additional relevant entities or activities that may have contributed to the failure of the insured depository institution, including with respect to auditing, accounting, credit rating agencies, investment bank underwriters, and emergency liquidity options such as loans from the Federal reserve banks or advances through the Federal Home Loan Bank system.
Nothing in this clause or a report issued pursuant to this clause may be construed to limit the authority of a Federal agency to enforce violations of Federal statutes, rules, or orders.
Section 13(c) of the Federal Deposit Insurance Act (12 U.S.C. 1823(c)) is amended by adding at the end the following:
The appropriate Federal banking agency of an insured depository institution about which a determination is made under paragraph (4)(G)(i) shall, not later than 90 days after the date of such determination, and again 210 days thereafter, submit a report to the Congress that discloses the following:
Subject to such redactions as the appropriate Federal banking agency determines appropriate to protect personally identifiable information about customers and other financial institutions (as such term is defined under section 11(e)(9)(D)), all—
reports of examination and inspection that relate to the failed insured depository institution in the previous 3-year period;
formal communications of a material supervisory determination conveyed to the failed insured depository institution in the previous 3-year period; and
any additional exam reports and correspondence that the appropriate Federal banking agency determines may be relevant to the failure of the insured depository institution.
An examination of any mismanagement by the executives and board of the insured depository institution that contributed to the failure of the insured depository institution.
Any supervisory or regulatory shortcomings by such appropriate Federal banking agency with respect to the insured depository institution.
Any dynamics that the appropriate Federal banking agency determines may have contributed to the failure of the insured depository institution.
Any supervisory, regulatory, or legislative recommendations such appropriate Federal banking agency may have to improve the safety and soundness of similarly situated insured depository institutions, the banking system, and financial stability.
The provision of any information by a Federal banking agency under this paragraph may not be construed as—
waiving, destroying, or otherwise affecting any privilege applicable to the information; or
waiving any exemption applicable to the information under section 552 of title 5, United States Code (commonly known as the Freedom of Information Act).
A Federal banking agency shall publish materials contained in a report required under subparagraph (A) to the fullest extent possible to promote transparency.
If a Federal banking agency determines particular materials described under subclause (I) should not be published, the Federal banking agency shall consult with the Chair and Ranking Member of the Committee on Financial Services of the House of Representatives and the Chair and Ranking Member of the Committee on Banking, Housing, and Urban Affairs of the Senate.
If, after the consultation required under subclause (II), the Federal banking agency determines there is a substantial public interest in not publishing such materials, the Federal banking agency shall provide those materials to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate with a written explanation describing the reasons for not publishing those materials.
For purposes of this subparagraph, the term privilege includes any work-product, attorney-client, or other privilege recognized under Federal or State law.
A Federal banking agency may extend a deadline described under subparagraph (A) for an additional 60 days, if the Federal banking agency—
faces ongoing circumstances that require the Federal banking agency to prioritize activities to promote stability of the U.S. banking system; and
notifies the Congress of such extension and the reasons for such extension.
A Federal banking agency may consolidate multiple reports required under this paragraph so long as the individual reports being consolidated all meet the timing requirements under this paragraph.
Nothing in this paragraph or reports or materials provided pursuant to this paragraph may be construed to limit the authority of a Federal agency to enforce violations of Federal statutes, rules, or orders.
Section 4(k)(7)(A) of the Bank Holding Company Act of 1956 (12 U.S.C. 1843(k)(7)(A)) is amended by inserting Under such regulations, the period of time generally permitted for holding merchant banking investments shall not be less than 15 years. For any merchant banking investment held on the date of enactment of the Merchant Banking Modernization Act, the holding period of time permitted shall not be less than 15 years from the initial date of the investment. after the period at the end.
The Board of Governors of the Federal Reserve System, the Comptroller of the Currency, and the Federal Deposit Insurance Corporation shall carry out a study of—
the impact of partnerships between banking organizations, on the one hand, and financial technology companies, on the other hand, on the banking sector, competition, innovation, consumer protection, and the availability of financial products and services, including the extent to which these partnerships support the formation of new banking organizations, reduce time to market for products and services, lower compliance burdens, boost customer acquisition, improve technological capabilities, and provide access to more diverse funding sources; and
what changes to Federal laws governing banking organizations, or to rules or guidance adopted by the Board of Governors of the Federal Reserve System, the Comptroller of the Currency, or the Federal Deposit Insurance Corporation, may help promote effective partnerships between banking organizations, on the one hand, and financial technology companies, on the other hand.
Not later than 1 year after the date of enactment of this Act, the Board of Governors of the Federal Reserve System, the Comptroller of the Currency, and the Federal Deposit Insurance Corporation shall issue a report to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate containing all findings and determinations made in carrying out the study required under paragraph (1).
In this subsection, the term banking organization means a depository institution holding company or an insured depository institution, as such terms are defined, respectively, under section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813).
The National Credit Union Administration shall carry out a study of—
the impact of partnerships between credit unions, on the one hand, and financial technology companies, on the other hand, on the credit union sector, competition, innovation, consumer protection, and the availability of financial products and services, including the extent to which these partnerships support the formation of new credit unions, reduce time to market for products and services, lower compliance burdens, boost customer acquisition, improve technological capabilities, and provide access to more diverse funding sources; and
what changes to Federal laws governing credit unions, or to rules or guidance adopted by the National Credit Union Administration, may help promote effective partnerships between credit unions, on the one hand, and financial technology companies, on the other hand.
Not later than 1 year after the date of enactment of this Act, the National Credit Union Administration shall issue a report to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate containing all findings and determinations made in carrying out the study required under paragraph (1).