Main Street Capital Access Act

119 HR 6955 EH: Main Street Act U.S. House of Representatives text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. I 119th CONGRESS 2d Session H. R. 6955

IN THE HOUSE OF REPRESENTATIVES AN ACT To make improvements to the Federal banking laws, and for other purposes.

1.Short title; table of contents (a)Short titleThis Act may be cited as the Main Street Capital Access Act or the Main Street Act. (b)Table of contentsThe table of contents for this Act is as follows: Sec. 1. Short title; table of contents. Title I—New Bank Formation and Local Community Access Sec. 101. Promoting New Bank Formation. Sec. 102. New Bank Application Numbers Knowledge. Sec. 103. CDFI Fund Transparency. Sec. 104. CDFI Bond Guarantee Improvement. Title II—Tailoring Bank Regulation Sec. 201. Taking Account of Institutions with Low Operation Risk. Sec. 202. Small Bank Holding Company Relief. Sec. 203. Tailoring and Indexing Enhanced Regulations. Sec. 204. Community Bank Regulatory Tailoring. Title III—Fair and Transparent Bank Supervision Sec. 301. Halting Uncertain Methods and Practices in Supervision. Sec. 302. Fair Audits and Inspections for Regulators’ Exams. Sec. 303. Supervisory Modifications for Appropriate Risk-based Testing. Sec. 304. Financial Integrity and Regulation Management. Title IV—Regulatory Accountability and Transparency Sec. 401. FDIC Board Accountability. Sec. 402. Stop Agency Fiat Enforcement of Guidance. Sec. 403. Regulatory Efficiency, Verification, Itemization, and Enhanced Workflow. Title V—Strengthening Local Bank Funding Sec. 501. Bringing the Discount Window into the 21st Century. Sec. 502. Keeping Deposits Local. Title VI—Promoting Bank Competition and Merger Clarity Sec. 601. Bank Competition Modernization. Sec. 602. Merger Agreement Approvals Clarity and Predictability. Sec. 603. Merger Process Review. Sec. 604. Bank Failure Prevention. Title VII—Strengthening Transparency and Involvement in Bank Resolutions Sec. 701. Least Cost Exception. Sec. 702. Enhancing Bank Resolution Participation. Sec. 703. Failing Bank Acquisition Fairness. Title VIII—Facilitating Innovation and Bank Partnerships Sec. 801. Merchant Banking Modernization. Sec. 802. Bank-Fintech Partnership Enhancement. Sec. 803. Discretionary surplus fund. INew Bank Formation and Local Community Access

101.Promoting New Bank FormationSection 908 of the 21st Century ROAD to Housing Act is amended— (1)in subsection (b)(2), by striking 180-day and inserting 90-day; (2)in subsection (c)— (A)in the heading, by inserting and extension after study; (B)by redesignating paragraph (2) as paragraph (3); and (C)by inserting after paragraph (1) the following: (2)Safety and soundness determination; extension of pilot program (A)DeterminationNot earlier than January 1, 2031, and not later than June 30, 2031, the Federal banking agencies may, jointly, determine that subsections (a) and (b) have had a significant adverse effect on the safety and soundness of qualifying community banks. (B)ExtensionUnless the Federal banking agencies make the determination described in subparagraph (A), the authorities under subsections (a) and (b) shall be permanent. (C)TerminationIf the Federal banking agencies make the determination described in subparagraph (A)— (i)subsections (a) and (b) shall only apply to a qualifying community bank that became an insured depository institution before the date of such determination; and (ii)the Federal banking agencies 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, and make such report available to the public, containing such determination and the reasons for such determination.; and (3)in subsection (e)(6)(B), by striking between January 1, 2026, and December 31, 2028 and inserting on or after January 1, 2026.

102.New Bank Application Numbers Knowledge (a)Annual report on national bank and Federal savings association charter applicationsThe 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: (1)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. (2)The mean and median times for preliminary approval of such applications. (3)The mean and median times for final approval of such applications. (4)To the extent practicable, common reasons leading to the denial, withdrawal, or expiration of preliminary approval of such applications. (b)Annual report on Federal credit union charter applicationsThe National Credit Union Administration shall publish an annual report that includes the following, or with respect to any equivalent procedure used by the agency includes the following: (1)The number of Federal credit union charter applications received, approved on a final basis, denied, withdrawn, inactive, or returned pending resubmission. (2)The mean and median times for final approval of such applications. (3)To the extent practicable, common reasons leading to application denial, withdrawal, inactivity, or to applications being returned for resubmission. (c)Annual report on depository institution holding company applications (1)In generalThe 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: (A)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. (B)The mean and median times to approve such applications. (C)To the extent practicable, common reasons leading to denial or withdrawal of such applications. (2)Top-tier depository institution holding company definedIn 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. (d)Annual report on Federal deposit insurance applicationsThe 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: (1)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. (2)The mean and median times to approve such applications. (3)To the extent practicable, common reasons leading to denial or withdrawal of such applications. (e)Annual report on State depository institution and State credit union charter applications (1)In generalThe 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: (A)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. (B)The mean and median times to approve such applications, with times for each State shown separately. (C)To the extent practicable, common reasons leading to denial or withdrawal of such applications. (2)DefinitionsIn this subsection: (A)StateThe term State means any State of the United States, the District of Columbia, and any territory of the United States. (B)State depository institutionThe term State depository institution means— (i)a State depository institution, as defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813); and (ii)a State credit union, as defined in section 101 of the Federal Credit Union Act (12 U.S.C. 1752).

103.CDFI Fund TransparencySection 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: (5)Annual testimonyThe 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— (A)the operations of the Fund during the previous year; (B)steps the Secretary and the Fund are taking to support community development financial institutions through the financial agent mentor-protégé program; and (C)steps the Secretary and the Fund are taking to coordinate with regulators to ensure certification and reporting requirements are appropriately streamlined for community development financial institutions. .

104.CDFI Bond Guarantee Improvement (a)Sense of CongressIt 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. (b)Guarantees for bonds and notes issued for community or economic development purposes (1)In generalSection 114A of the Community Development Banking and Financial Institutions Act of 1994 (12 U.S.C. 4713a) is amended— (A)in subsection (c)(2)— (i)by striking , multiplied by an amount equal to the outstanding principal balance of issued notes or bonds; and (ii)by inserting outstanding before principal amount; (B)by amending subsection (e)(2) to read as follows: (2)Limitation on guarantee amountThe 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.; (C)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 (D)in subsection (k), by striking September 30, 2014 and inserting December 31, 2028. (2)Clerical amendmentThe 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: Sec. 114A. Guarantees for bonds and notes issued for community or economic development purposes.. (c)Report on the CDFI Bond Guarantee ProgramNot 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). IITailoring Bank Regulation

201.Taking Account of Institutions with Low Operation Risk (a)Tailoring regulation to business model and risk (1)DefinitionsIn this subsection— (A)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 (B)the term regulatory action— (i)means any proposed, interim, or final rule or regulation; and (ii)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. (2)Consideration and tailoringFor any regulatory action occurring after the date of enactment of this Act, each Federal financial institutions regulatory agency shall— (A)take into consideration the risk profile and business models of each type of institution or class of institutions subject to the regulatory action; and (B)tailor the regulatory action applicable to a class 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. (3)Factors to considerIn carrying out the requirements of paragraph (2) with respect to a regulatory action, each Federal financial institutions regulatory agency shall consider— (A)the aggregate effect of all applicable regulatory actions promulgated by such agency 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; (B)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 (C)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. (4)Notice of proposed and final rulemakingEach 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). (5)Reports to Congress (A)Agency reportingNot 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. (B)GAO reportingNot 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). (b)Short-form call reports for all banks eligible for the community bank leverage ratioThe appropriate Federal banking agencies, as defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813), shall establish 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)). (c)Report to Congress on modernization of supervisionNot 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: (1)Changing bank business models. (2)Examiner workforce and training. (3)The structure of supervisory activities within banking agencies. (4)Improving bank-supervisor communication and collaboration. (5)The use of supervisory technology. (6)Supervisory factors uniquely applicable to community banks. (7)Changes in statutes necessary to achieve more effective supervision.

202.Small Bank Holding Company ReliefNot 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.

203.Tailoring and Indexing Enhanced Regulations (a)Periodic adjustments to thresholdsThe Financial Stability Act of 2010 (12 U.S.C. 5311 et seq.) is amended by adding at the end the following:

177.Periodic adjustments to thresholds (a)In general (1)AdjustmentNot later than 1 year after the date of enactment of this section, and every 5 years thereafter, the Board of Governors shall increase each threshold described in subsection (b) by the ratio, if greater than 1, of the annual value of the economic indicator selected by the Board of Governors as appropriate for that threshold under paragraph (2)(B) for the calendar year preceding the year in which the adjustment is calculated under this section, to the published annual value of such economic indicator for the calendar year preceding April 1, 2026. (2)Selection of economic indicatorsNot later than 3 months after the date of enactment of this section, the Board of Governors shall— (A)complete a study on the advantages and disadvantages of the use of either nominal United States gross domestic product (as published by the Department of Commerce) or the Consumer Price Index (as published by the Department of Labor) to adjust periodically the quantitative regulatory thresholds described in subsection (b); (B)for each threshold described in subsection (b), select either nominal United States gross domestic product (as published by the Department of Commerce) or the Consumer Price Index (as published by the Department of Labor) as appropriate for adjusting such threshold; (C)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— (i)all findings and determinations made in carrying out the study required under subparagraph (A); and (ii)all selections made under subparagraph (B). (b)Covered thresholdsThe thresholds described in this subsection are the following: (1)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. (2)Each bank holding company total consolidated asset amount in— (A)sections 116(a), 121(a), 163(b), 164, 165(a)(1), 165(h)(2), 165(j)(1) of this Act; and (B)section 401(f) of the Economic Growth, Regulatory Relief, and Consumer Protection Act. (3)Each financial company total consolidated asset amount in section 165(i)(2)(A) of this Act. (c)Currency of informationThe 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 or Department of Labor, as appropriate. (d)Rounding (1)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. (2)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. (e)PublicationNot 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. (f)Implementation periodAny 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).

178.Periodic adjustments to thresholds established by rule (a)Agency reviewNot 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— (1)any regulation— (A)implementing section 165 of this Act; or (B)making specific cross-reference to any regulation of the Board of Governors implementing section 165 of this Act; and (2)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. (b)Modifications requiredThe 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 the economic indicator selected by the agency as appropriate for that threshold under paragraph (1) for the calendar year preceding the year in which the adjustment is calculated under this section, to the published annual value of such economic indicator 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— (1)not later than 3 months after the date of enactment of this subsection, for each threshold identified by each review conducted under subsection (a), select either nominal United States gross domestic product (as published by the Department of Commerce) or the Consumer Price Index (as published by the Department of Labor) as appropriate for adjusting such threshold, and use the values of such selected economic indicator most recently published as of the date of commencement of the review to compute the ratio described in this subsection; (2)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 (3)seek to adjust such thresholds, to the extent feasible, with rounding consistent with section 177(d) of this Act. (c)ReportUpon 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).. (b)Clerical amendmentThe 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: Sec. 177. Periodic adjustments to thresholds. Sec. 178. Periodic adjustments to thresholds established by rule..

204.Community Bank Regulatory Tailoring (a)Periodic adjustments to thresholds (1)In general (A)AdjustmentBy 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 (b) shall be increased by the ratio, if greater than 1, of the annual value of the economic indicator selected by the Board of Governors of the Federal Reserve System as appropriate for that dollar amount under subparagraph (B) for the calendar year preceding the year in which the adjustment is calculated under this section, to the published annual value of such economic indicator for the calendar year preceding April 1, 2026. (B)Selection of economic indicatorsNot later than 3 months after the date of enactment of this Act, the Board of Governors of the Federal Reserve System shall— (i)complete a study on the advantages and disadvantages of the use of either nominal United States gross domestic product (as published by the Department of Commerce) or the Consumer Price Index (as published by the Department of Labor) to adjust periodically the dollar amounts described in subsection (b); (ii)for each dollar amount described in subsection (b), select either nominal United States gross domestic product (as published by the Department of Commerce) or the Consumer Price Index (as published by the Department of Labor) as appropriate for adjusting such dollar amount; (iii)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— (I)all findings and determinations made in carrying out the study required under clause (i); and (II)all selections made under clause (ii). (2)Currency of informationThe 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 or Department of Labor, as appropriate. (3)Rounding (A)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. (B)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. (C)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. (D)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. (E)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. (F)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. (G)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. (H)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. (I)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. (J)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. (K)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. (L)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. (4)PublicationNot 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. (5)Implementation periodThe 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). (b)Dollar amountsThe dollar amounts described in this subsection are the dollar amounts described in each of the following: (1)Section 5(c)(3)(C)(ii) of the Bank Holding Company Act of 1956 (12 U.S.C. 1844(c)(3)(C)(ii)). (2)Section 809(a) of the Community Reinvestment Act of 1977 (12 U.S.C. 2908(a)). (3)Sections 202(4), 203(1), and 204 of the Depository Institution Management Interlocks Act (12 U.S.C. 3201 et seq.). (4)Sections 210(o), 210(r)(1)(A)(i), and section 956(f) Dodd-Frank Wall Street Reform and Consumer Protection Act (12 U.S.C. 5301 et seq.). (5)Sections 202(a)(6), 202(b)(1)(A), 202(c)(1)(A)(iii), 216(b)(2)(B)(iii)(II), 216(f)(2), 216(i)(4)(B), 216(j)(2)(A), and 216(o)(4) of the Federal Credit Union Act (12 U.S.C. 1751 et seq.). (6)Sections 7(a)(12), 11(p)(1)(A)(i), 36(i)(1)(B), 36(j), 38(b)(2)(A)(ii), and 38(k)(2)(B)(iii) of the Federal Deposit Insurance Act (12 U.S.C. 1811 et seq.). (7)Section 2(10) of the Federal Home Loan Bank Act (12 U.S.C. 1422(10)). (8)Sections 7(a)(1) and 22(h)(5)(C) of the Federal Reserve Act (12 U.S.C. 221 et seq.). (9)The second paragraph (3) of section 304(i) (relating to Exemption from certain disclosure requirements) and section 309(a) of the Home Mortgage Disclosure Act of 1975 (12 U.S.C. 2801 et seq.). (10)Section 5(u)(2)(A) of the Home Owners’ Loan Act (12 U.S.C. 1464(u)(2)(A)). (11)Section 909(a)(1) of the International Lending Supervision Act of 1983 (12 U.S.C. 3908(a)(1)). (12)Section 3(1)(B)(iv) of the Real Estate Settlement Procedures Act of 1974 (12 U.S.C. 2602(1)(B)(iv)). (13)Section 5136A(a)(2)(D)(ii) of the Revised Statutes of the United States (12 U.S.C. 24a(a)(2)(D)(ii)). (14)Section 129C(b)(2)(F)(i) of the Truth in Lending Act (15 U.S.C. 1639c(b)(2)(F)(i)). IIIFair and Transparent Bank Supervision

301.Halting Uncertain Methods and Practices in Supervision (a)FindingsCongress finds that— (1)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; (2)the CAMELS rating system relies heavily on examiner judgment, which can lead to subjective and inconsistent ratings across similar institutions; (3)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 (4)examination and supervision, as well as the CAMELS rating system, should focus on a financial institution’s material financial condition or solvency. (b)Amendments to the CAMELS Rating System (1)In generalThe Federal Financial Institutions Examination Council Act of 1978 (12 U.S.C. 3301 et seq.) is amended by adding at the end the following: 1012.Amendments to the CAMELS Rating System (a)In generalThe Council shall make recommendations to amend the Uniform Financial Institutions Rating System, and the CAMELS components thereunder, to— (1)establish articulable, clear, and reviewable criteria for assessing each CAMELS component; (2)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; (3)revise the management component of the CAMELS components to limit the assessment under such component to articulable, clear, and reviewable measures of an institution’s management in relation to its risk profile; (4)ensure that composite ratings consider the financial institution’s compliance with— (A)section 21 of the Federal Deposit Insurance Act (12 U.S.C. 1829b); (B)chapter 2 of title I of Public Law 91–508 (12 U.S.C. 1951 et seq.); (C)subchapter II of chapter 53 of title 31, United States Code; and (D)any other applicable requirements and implementing regulations relating to the prevention of money laundering and terrorist financing; and (5)ensure that composite ratings are determined based on a transparent methodology that is limited to the objective criteria established for each CAMELS component. (b)RulemakingNot 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). (c)Public comment periodIn issuing the rules required under subsection (b), the Federal financial institutions regulatory agencies shall— (1)publish a notice of proposed rulemaking with respect to such rules; and (2)provide for a public comment period of not less than 90 days. (d)Rule of constructionNothing 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.. (2)Well managed definition (A)Bank Holding Company Act of 1956Section 2(o)(9)(A) of the Bank Holding Company Act of 1956 (12 U.S.C. 1841(o)(9)(A)) is amended— (i)by striking achievement of and all that follows through a CAMEL and inserting achievement of a CAMEL; (ii)by striking ; and and inserting ; or; and (iii)by striking clause (ii). (B)Revised Statutes of the United StatesSection 5136A(g)(6)(A) of the Revised Statutes of the United States (12 U.S.C. 24a(g)(6)(A)) is amended— (i)by striking agency— and all that follows through the achievement and inserting agency, the achievement; (ii)by striking ; and and inserting ; or; and (iii)by striking clause (ii).

302.Fair Audits and Inspections for Regulators’ Exams (a)Timeliness of examinations and examination reportsThe 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: 1013.Timeliness of examinations and examination reports (a)Timeliness of examinationsA 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. (b)Final examination reportA 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— (1)the exit interview for an examination of the institution; or (2)the provision of additional material information by the institution relating to the examination. (c)Exit interview requirementWithin 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. (d)Examination materialsUpon 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.. (b)Timeliness of required prudential private letter rulingsThe 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: 1014.Timeliness of required prudential private letter rulings (a)Authority and regulation (1)In generalEach 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— (A)the agency’s non-objection to the financial institution conducting a particular activity; (B)the agency’s interpretation of a law or regulation as applied to a particular matter; (C)the agency’s interpretation of how generally accepted accounting principles or accounting objectives, standards, and requirements apply to a particular matter; or (D)the agency’s application of any supervisory guidance, statement of policy, or interpretive rule to a particular matter. (2)Covered action definedIn this subsection and with respect to a covered financial institution, the term covered action means— (A)any action in connection with a regulated activity that the covered financial institution is taking or is intending to take, including— (i)entering into a transaction; (ii)issuing a product or service; or (iii)changing the corporate structure of the covered financial institution; and (B)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)). (b)Contents of requestThe procedures established under subsection (a) shall provide that a request for written advice made under the procedures shall be in writing and contain— (1)the nature of the request; (2)applicable facts relating to the matter; (3)applicable law, regulations, or generally accepted accounting principles relating to the matter; and (4)a summary of the request. (c)Response to requestA Federal financial institutions regulatory agency receiving a request for written advice under subsection (a) shall, not later than 30 days after receiving the request— (1)provide the financial institution making the request with written notification confirming receipt of the request and stating whether the request contains all of the information required under subsection (b); and (2)if the request does not contain all of the information required under subsection (b)— (A)provide the financial institution with an explanation of what information is missing; and (B)notify the financial institution that the financial institution may provide the missing information to the agency within 30 days. (d)Providing missing informationIf 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 within 30 days of the date the financial institution receives the explanation of the missing information under subsection (c). (e)DeterminationA 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)— (1)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); (2)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 (3)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. (f)Limited binding effectWritten advice issued by a Federal financial institutions regulatory agency under the procedures established under this section— (1)shall be binding on the agency with respect to the financial institution requesting the written advice and the specific facts described in the request; (2)may be relied upon by the financial institution requesting the written advice in good faith; and (3)shall not be binding on the agency with respect to any other person or institution and shall not be treated as precedent. (g)Confidentiality and privilege (1)Treatment of written adviceWritten 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. (2)Publishing of anonymized or redacted summariesA Federal financial institutions regulatory agency may publish anonymized or redacted summaries of rulings for informational purposes. (h)Modification or revocationA Federal financial institutions regulatory agency may modify or revoke written advice issued under this section only if— (1)the requesting financial institution made a material misstatement or omission of fact; (2)there has been a change in controlling law; or (3)the ruling is inconsistent with a final rule or judicial decision issued after the date the written advice was issued. (i)Reasonable feesEach 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— (1)shall be based on the estimated cost to the agency of reviewing, analyzing, and responding to the request; (2)may vary based on the complexity of the request or the size of the requesting institution; and (3)shall be prescribed by regulation. (j)FinalityWritten advice issued under the procedures established under this section shall not be construed as a final agency action.. (c)Office of Independent Examination Review (1)In generalThe 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: 1015.Office of Independent Examination Review (a)EstablishmentThere is established in the Council an Office of Independent Examination Review (the Office). (b)Board of Independent Examination Review (1)In generalThe 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. (2)QualificationsThe President shall appoint 1 member of the Board from each of the following classes of individuals: (A)Individuals who have been employed by a Federal financial institutions regulatory agency. (B)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— (i)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; (ii)have academic or private sector experience relating to financial services; or (iii)have relevant work-related experience in consumer affairs or compliance with consumer protection laws with respect to financial institutions. (C)Individuals with at least 10 years private sector financial services senior management-level experience. (3)Prohibition on certain individuals serving as a Board memberThe President may not appoint an individual as a member of the Board if the individual— (A)is, or was during the previous 2-year period, employed by a Federal financial institutions regulatory agency or a Federal reserve bank; or (B)is, or was during the previous 2-year period, employed by a financial institution. (4)ConsultationIn appointing members of the Board, the President shall consult with the Federal financial institutions regulatory agencies and financial institutions. (5)Term (A)In generalEach 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. (B)Term limitationNo individual may serve more than 2 full terms on the Board. (6)Political affiliationNot more than 2 members of the Board shall be members of the same political party. (7)Quorum (A)In general3 members of the Board shall constitute a quorum. (B)Initial quorumDuring 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. (8)Rate of payThe 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. (c)StaffingThe 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. (d)DutiesThe Board shall— (1)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; (2)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; (3)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; (4)conduct a continuing and regular program of examination quality assurance on a sample for all examination types conducted by the Federal financial institutions regulatory agencies; (5)carry out an independent review of any supervisory appeal initiated under section 1016; and (6)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. (e)Confidentiality (1)In generalThe Board and the Council shall keep confidential— (A)all meetings, discussions, and information provided by financial institutions and Federal financial institutions regulatory agencies that involve confidential supervisory information or privileged information; (B)all information and communications exchanged between a financial institution and the Office of Independent Examination Review; and (C)all information and communications exchanged between a Federal financial institutions regulatory agency and the Office of Independent Examination Review. (2)Submission of information does not constitute a waiverSection 18(x) of the Federal Deposit Insurance Act (12 U.S.C. 1828(x)) and section 205(j) of the Federal Credit Union Act (12 U.S.C. 1785(j)) 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 sections 18(x) and 205(j) apply to the submission of information described in such sections 18(x) and 205(j). (3)Sharing of information without waiving privilegeThe 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)).. (2)DefinitionsSection 1003 of the Federal Financial Institutions Examination Council Act of 1978 (12 U.S.C. 3302) is amended— (A)in paragraph (2), by striking and at the end; and (B)by adding at the end the following: (4)the term Board means the Board of Independent Examination Review established under section 1015(b); (5)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; (6)the term insured depository institution has the meaning given that term in section 3 of the Federal Deposit Insurance Act; and (7)the term insured credit union has the meaning given that term in section 101 of the Federal Credit Union Act.. (d)Right to independent review of material supervisory determinationsThe 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: 1016.Right to independent review of material supervisory determinations (a)In generalA 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 Federal financial institutions regulatory agency and the Board may not conduct concurrent reviews. (b)Notice (1)TimingA 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. (2)ExtensionThe 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. (3)Identification of determinationThe written notice shall— (A)identify the material supervisory determination that is the subject of the requested independent examination review; (B)state the reasons why the institution believes that the material supervisory determination is incorrect or should otherwise be modified; and (C)include— (i)a clear and complete statement of all relevant facts and issues; (ii)all arguments that the institution wishes to present; and (iii)all relevant and material documents in the possession of the institution that the institution wishes to be considered. (4)Information made available to institutionA financial 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 financial institution with all examination and factual information relied upon by the Federal financial institutions regulatory agency in making the material supervisory determination. The Federal financial institutions regulatory agency shall provide such information to the financial institution not later than 14 days after receiving the request. (5)Submission of recordAfter 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. (c)Determination; right to hearing (1)In generalThe Board shall— (A)determine the merits on the record, including whether the material supervisory determination being reviewed should be upheld, canceled, or modified; or (B)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, except that such 60-day period may be extended if both the financial institution and the Board agree to such extension. (2)Right to obtain testimonyA 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. (3)Basis of decisionThe Board shall issue a written decision based upon the record of the examination, supplemented by the record established before the Board and at any hearing. (4)Standard of reviewThe 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 the examiners or the Federal financial institutions regulatory agency, but shall independently determine the appropriateness of the material supervisory determination based upon the relevant statutes, regulations, other appropriate guidance, and the evidentiary record. (5)Policy mattersThe 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. (d)Final decisionA decision by the Board on an independent review under this section shall— (1)be made not later than 60 days after the record has been closed; and (2)be deemed final and shall bind the agency whose supervisory determination was the subject of the review and the financial institution requesting the review. (e)Referral of violationsIf 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. (f)Annual report (1)In generalThe 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. (2)ConfidentialityIn 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. (g)Retaliation prohibited (1)In generalA Federal financial institutions regulatory agency may not— (A)retaliate against a financial institution, including service providers, or any institution-affiliated party, for exercising appellate rights under this section; or (B)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. (2)RetaliationFor 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. (h)RulemakingThe Board shall issue rules, consistent with subchapter II of chapter 5 of title 5, United States Code (commonly referred to as the Administrative Procedure Act), to establish procedures for hearings described under this section, including that— (1)a financial institution may appear at the hearing personally or through counsel; (2)a financial institution may provide an oral and written presentation at the hearing; (3)the Board may ask questions of any person participating in the hearing; (4)the hearing shall not be governed by the Federal Rules of Evidence; and (5)the Board shall have a verbatim transcript of the hearing prepared. (i)Rule of constructionNothing in this section may be construed— (1)to affect the right of a Federal financial institutions regulatory agency to take enforcement or other supervisory actions related to a material supervisory determination under review under this section; or (2)to prohibit the review under this section of a material supervisory determination with respect to which there is an ongoing enforcement or other supervisory action. . (e)Additional amendments (1)Regulatory appeals process, ombudsman, and alternative dispute resolution (A)In generalSection 309 of the Riegle Community Development and Regulatory Improvement Act of 1994 (12 U.S.C. 4806) is amended— (i)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); (ii)by striking subsections (a), (b), and (c); (iii)by redesignating subsections (d), (e), (f), and (g) as subsections (a), (b), (c), and (d), respectively; (iv)in subsection (b), as so redesignated— (I)in paragraph (2)— (aa)in subparagraph (B), by striking and at the end; (bb)in subparagraph (C), by striking the period and inserting ; and; and (cc)by adding at the end the following: (D)ensure that appropriate safeguards exist for protecting any party from retaliation by any agency for exercising rights under this subsection.; and (II)by adding at the end the following: (6)RetaliationFor 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.; and (v)in paragraph (1)(A) of subsection (c), as so redesignated— (I)in clause (ii), by striking ; and and inserting a semicolon; (II)in clause (iii), by striking ; and and inserting a semicolon; and (III)by adding at the end the following: (iv)any issue specifically listed in an exam report as a matter requiring attention by the institution’s management or board of directors; and (v)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. (B)EffectNothing in this subsection affects the authority of a Federal banking agency (as defined in section 304(b)) to take enforcement or other supervisory action. (2)Federal Credit Union ActSection 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. (3)Federal Financial Institutions Examination Council ActThe Federal Financial Institutions Examination Council Act of 1978 (12 U.S.C. 3301 et seq.) is amended— (A)in section 1003 (12 U.S.C. 3302)— (i)by striking paragraph (1) and inserting the following: (1)the term Federal financial institutions regulatory agencies— (A)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 (B)includes the Bureau of Consumer Financial Protection for purposes of sections 1012 through 1015;; and (ii)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;; (B)in section 1004(a)(4) (12 U.S.C. 3303), by striking Consumer Financial Protection Bureau and inserting Bureau of Consumer Financial Protection; and (C)in section 1005 (12 U.S.C. 3304)— (i)by striking One-fifth and inserting One-fourth; and (ii)by inserting described under section 1003(1)(A) after agencies. (f)Election of forum for review of supervisory enforcement (1)Federal Deposit Insurance ActSection 8 of the Federal Deposit Insurance Act (12 U.S.C. 1818) is amended— (A)in subsection (b), by adding at the end the following: (11)HearingWith 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— (A)the appropriate Federal banking agency; or (B)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.; (B)in subsection (e), by adding at the end the following: (8)HearingWith 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— (A)the appropriate Federal banking agency; or (B)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.; (C)in subsection (h)— (i)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 (ii)by adding at the end the following: (4)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. (5)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.; (D)in subsection (i)(2)— (i)by amending subparagraph (E)(ii) to read as follows: (ii)Finality of assessmentIf, 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.; (ii)by amending subparagraph (H) to read as follows: (H)HearingThe insured depository institution or institution-affiliated party against whom any penalty is assessed under this paragraph shall be afforded a hearing before— (i)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 (ii)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.; and (iii)by amending subparagraph (I)(ii) to read as follows: (ii)Appropriateness of penalty not reviewableIn 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.; and (E)by adding at the end the following: (x)Savings clauseNothing in subsection (b)(11)(B), (e)(8)(B), or (i)(2)(H)(ii) shall be construed to— (1)limit the authority of a Federal banking agency to initiate an administrative enforcement action; or (2)impair the validity of any consent order.. (2)Federal Credit Union ActSection 206 of the Federal Credit Union Act (12 U.S.C. 1786) is amended— (A)in subsection (e), by adding at the end the following: (5)HearingWith respect to any notice properly issued and served upon an insured credit union, credit union which has insured accounts, or an institution-affiliated party under this subsection, such insured credit union, credit union which has insured accounts, or institution-affiliated party shall be afforded a hearing before— (A)the Administration; or (B)if such insured credit union, credit union which has insured accounts, or institution-affiliated party 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.; (B)in subsection (g), by adding at the end the following: (8)HearingWith 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— (A)the Administration; or (B)if such institution-affiliated party 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.; (C)in subsection (j)— (i)in paragraph (1), by striking (other than the hearing provided for in subsection (i)(3) of this section) and inserting (other than the hearing provided for in subsection (e)(5)(B), (g)(8)(B), (i)(3), or (k)(2)(H)(ii)); and (ii)by adding at the end the following: (4)Any hearing provided for in subsection (e)(5)(B), (g)(8)(B), (i)(3), or (k)(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. (5)Any final decision of a United States district court made pursuant to a respondent’s election under subsection (e)(5)(B), (g)(8)(B), (i)(3), or (k)(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.; (D)in subsection (k)(2)— (i)by amending subparagraph (E)(ii) to read as follows: (ii)Finality of assessmentIf, 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.; (ii)by amending subparagraph (H) to read as follows: (H)HearingThe insured credit union or institution-affiliated party against whom any penalty is assessed under this paragraph shall be afforded a hearing before— (i)the Administration, if such insured credit union or institution-affiliated party submits a request for such hearing within 20 days after the issuance of the notice of assessment; or (ii)the appropriate United States district court, if such insured credit union or institution-affiliated party submits a request for such hearing and forum within 20 days after the issuance of the notice of assessment.; and (iii)by amending subparagraph (I)(ii) to read as follows: (ii)Appropriateness of penalty not reviewableIn any civil action under clause (i), except a civil action tried in a United States district court pursuant to subsection (e)(5)(B), (g)(8)(B), or (k)(2)(H)(ii), the validity and appropriateness of the penalty shall not be subject to review.; and (E)by adding at the end the following: (x)Savings clauseNothing in subsection (e)(5)(B), (g)(8)(B), or (k)(2)(H)(ii) shall be construed to— (1)limit the authority of the Administration to initiate an administrative enforcement action; or (2)impair the validity of any consent order..

303.Supervisory Modifications for Appropriate Risk-based Testing (a)Examination relief for certain well managed and well capitalized financial institutions (1)Insured depository institutionsSection 10(d) of the Federal Deposit Insurance Act (12 U.S.C. 1820(d)) is amended by adding at the end the following: (11)Examination relief for certain well managed and well capitalized insured depository institutions (A)In generalNotwithstanding paragraphs (1) and (2), the following shall apply to a well managed and well capitalized insured depository institution with $6,000,000,000 or less in consolidated assets: (i)Alternating limited-scope examinationsAfter 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. (ii)Combined examinationsIf 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. (B)ExceptionSubparagraph (A) shall not apply to an insured depository institution if— (i)the insured depository institution is currently subject to a formal enforcement proceeding or order by the Corporation or the appropriate Federal banking agency; or (ii)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. (C)RulemakingNot 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— (i)establish procedures for the limited-scope examinations described in subparagraph (A)(i); (ii)establish procedures for reviewing insured depository institutions described under subparagraph (A), that— (I)experience material changes in financial condition or operational risk profile between scheduled examinations; or (II)have failed to comply with Federal or State banking laws and regulations; and (iii)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. (D)Rule of constructionNothing 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 appropriate to ensure safety and soundness or compliance with applicable laws. (E)DefinitionsIn this paragraph: (i)Consumer compliance examinationThe 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). (ii)Well capitalizedThe term well capitalized has the meaning given that term in section 38(b). (iii)Well managedWith 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.. (2)Insured credit unionsSection 204 of the Federal Credit Union Act (12 U.S.C. 1784) is amended by adding at the end the following: (h)Examination relief for certain well managed and well capitalized insured credit unions (1)In generalNotwithstanding any other provision of this section, the following shall apply to a well managed and well capitalized insured credit union with $6,000,000,000 or less in consolidated assets: (A)Alternating limited-scope examinationsAfter 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. (B)Combined examinationsIf 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. (2)ExceptionParagraph (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. (3)RulemakingNot 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— (A)establish procedures for the limited-scope examinations described in paragraph (1)(A); (B)establish procedures for reviewing insured credit unions that— (i)experience material changes in financial condition or operational risk profile between scheduled examinations; or (ii)have failed to comply with Federal or State banking laws and regulations; and (C)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. (4)Rule of constructionNothing 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 appropriate to ensure safety and soundness or compliance with applicable laws. (5)DefinitionsIn this paragraph: (A)Consumer compliance examinationThe 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). (B)Well capitalizedThe term well capitalized has the meaning given that term in section 216(c). (C)Well managedWith 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.. (b)Examination practices (1)Insured depository institutionsSection 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: (12)Examination practicesWith 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— (A)ensure the examination is led by, to the maximum extent practicable, an examiner with significant experience as an examiner; (B)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; (C)make every effort, to the maximum extent practicable, to schedule the examination at a time that is convenient for the institution; and (D)to the maximum extent practicable, give the institution advance notice of issues expected to be covered in the examination. (13)ReportIn its annual report to Congress, each Federal banking agency shall include— (A)information on how the agency is complying with paragraphs (11) and (12); and (B)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— (i)the average experience of examiners, including the average number of years of examiner experience of those who lead on-site examinations; (ii)the average number of examiners utilized; and (iii)the average amount of time the agency spends visiting such institutions for on-site examinations.. (2)Insured credit unionsSection 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: (i)Examination practicesWith 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— (1)ensure the examination is led by, to the maximum extent practicable, an examiner with significant experience as an examiner; (2)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; (3)make every effort, to the maximum extent practicable, to schedule the examination at a time that is convenient for the credit union; and (4)to the maximum extent practicable, give the credit union advance notice of issues expected to be covered in the examination. (j)ReportIn its annual report to Congress, the National Credit Union Administration shall include— (1)information on how the Administration is complying with subsections (h) and (i); and (2)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— (A)the average experience of examiners, including the average number of years of examiner experience of those who lead on-site examinations; (B)the average number of examiners utilized; and (C)the average amount of time the Administration spends visiting such credit unions for on-site examinations..

304.Financial Integrity and Regulation Management (a)FindingsCongress finds that— (1)the primary objective of financial regulation and supervision by the Federal banking agencies is to promote safety and soundness of depository institutions; (2)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; (3)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; (4)financial service providers should strive to ensure that all business decisions are based on factors free from unlawful prejudice or political influence; (5)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; (6)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 (7)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. (b)DefinitionsIn this section: (1)Depository institutionThe term depository institution— (A)has the meaning given the term in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813); (B)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 (C)includes an insured credit union, as such term is defined in section 101 of the Federal Credit Union Act (12 U.S.C. 1752). (2)Federal banking agencyThe term Federal banking agency— (A)has the meaning given the term in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813); and (B)includes— (i)the National Credit Union Administration; and (ii)the Bureau of Consumer Financial Protection. (3)Foreign terrorist organizationThe 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). (4)Reputational riskThe 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. (5)State sponsors of terrorismThe 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— (A)section 1754(c)(1)(A)(i) of the Export Control Reform Act of 2018 (50 U.S.C. 4813(c)(1)(A)(i)); (B)section 620A of the Foreign Assistance Act of 1961 (22 U.S.C. 2371); (C)section 40(d) of the Arms Export Control Act (22 U.S.C. 2780(d)); or (D)any other provision of law. (c)Study on reputational riskNot later than 1 year after the date of the enactment of this Act, each Federal banking agency shall— (1)carry out a study to evaluate the use of reputational risk in the supervision of depository institutions; and (2)determine whether the removal of reputational risk in the supervision of depository institutions would threaten the safety and soundness of those depository institutions. (d)Removal of reputational risk as a consideration in the supervision of depository institutionsIf a Federal banking agency determines, under subsection (c), that the removal of reputational risk in the supervision of depository institutions would not threaten the safety and soundness of those depository institutions, the 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. (e)ProhibitionIf a Federal banking agency determines, under subsection (c), that the removal of reputational risk in the supervision of depository institutions would not threaten the safety and soundness of those depository institutions, the agency may not engage in rulemaking, the issuance of guidance, supervision activities, or enforcement activities related to the reputational risk of a depository institution or the managing of reputational risk by a depository institution, including— (1)establishing any rule, regulation, requirement, standard, or supervisory expectation concerning or related to the reputational risk of a depository institution, or the management thereof, whether binding or not; (2)conducting any examination, assessment, data collection, or other supervisory exercise concerning or related to reputational risk of a depository institution, or the management thereof; (3)issuing any examination finding, supervisory criticism, or other supervisory or examination communication concerning or related to reputational risk of a depository institution, or the management thereof; (4)making any supervisory ratings decision or determination that is based, in whole or in part, on any matter concerning or related to reputational risk of a depository institution, or the management thereof; and (5)taking any formal or informal enforcement action that is based, in whole or in part, on any matter concerning or related to reputational risk of a depository institution, or the management thereof. (f)ReportsNot 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— (1)confirms implementation of this section; and (2)describes any changes made to internal policies as a result of this section. IVRegulatory Accountability and Transparency

401.FDIC Board AccountabilitySection 2 of the Federal Deposit Insurance Act (12 U.S.C. 1812) is amended— (1)by striking Consumer Financial Protection Bureau each place such term appears and inserting Bureau of Consumer Financial Protection; (2)by amending subsection (a)(1)(C) to read as follows: (C)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.; and (3)in subsection (c)— (A)in paragraph (1), by adding at the end the following: No individual may be appointed as a member for more than two terms.; and (B)by adding at the end the following: (4)Maximum length of serviceNotwithstanding any other provision of this Act, no person shall serve as a member for more than twelve years in total..

402.Stop Agency Fiat Enforcement of Guidance (a)In generalEach 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. (b)Guidance clarity statementA 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.. (c)DefinitionsIn this section: (1)Financial agencyThe term financial agency means the following: (A)The Bureau of Consumer Financial Protection. (B)The Department of Housing and Urban Development. (C)The Department of the Treasury. (D)The Federal Deposit Insurance Corporation. (E)The Federal Housing Finance Agency. (F)The Board of Governors of the Federal Reserve System. (G)The National Credit Union Administration. (H)The Office of the Comptroller of the Currency. (I)The Securities and Exchange Commission. (2)GuidanceThe 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)a rule promulgated pursuant to notice and comment under section 553 of title 5, United States Code; (B)a rule exempt from rulemaking requirements under section 553(a) of title 5, United States Code; (C)a rule of financial agency organization, procedure, or practice under section 553(b)(A) of title 5, United States Code; (D)a decision of a financial agency adjudication under section 554 of title 5, United States Code, or any similar statutory provision; (E)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 (F)internal executive branch legal advice or legal opinions addressed to executive branch officials.

403.Regulatory Efficiency, Verification, Itemization, and Enhanced WorkflowSection 2222 of the Economic Growth and Regulatory Paperwork Reduction Act of 1996 (12 U.S.C. 3311) is amended— (1)by striking appropriate Federal banking agency each place such term appears and inserting Federal financial institutions regulatory agency; (2)by striking appropriate Federal banking agencies and inserting Federal financial institutions regulatory agencies; (3)in subsection (a)— (A)by striking represented on the Council; and (B)by striking once every 10 years and inserting once every 8 years; (4)in subsection (b)— (A)by redesignating paragraphs (1) and (2) as subparagraphs (A) and (B), respectively (and adjusting the margins accordingly); (B)by striking In conducting and inserting the following: (1)Solicitation of public commentIn conducting; and (C)by adding at the end the following: (2)Internal review of cumulative impactEach 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— (A)assesses the effects of such regulations on consumers’ access to financial products and services; (B)assesses the effects of such regulations on the availability of financial products and services to financial and nonfinancial firms; (C)assesses the impact of such regulations on credit availability and financial market liquidity in United States financial markets; (D)assess the effects of such regulations on consumer protection; (E)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; (F)to the extent practicable, quantifies the direct and indirect economic costs imposed by such regulations; and (G)includes recommendations to streamline or eliminate duplicative, outdated, and unnecessarily burdensome regulations.; (5)in subsection (c)— (A)by striking subsection (b)(2) and inserting subsection (b)(1)(B), and the internal review under subsection (b)(2),; and (B)by striking once every 10 years and inserting once every 8 years; (6)in subsection (e)— (A)in paragraph (1), by striking and at the end; (B)by redesignating paragraph (2) as paragraph (3); (C)by inserting after paragraph (1) the following: (2)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; and (D)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 (7)by adding at the end the following: (f)Federal financial institutions regulatory agency definedThe 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). . VStrengthening Local Bank Funding

501.Bringing the Discount Window into the 21st CenturySection 10 of the Federal Reserve Act (12 U.S.C. 241 et seq.) is amended by inserting after paragraph (10) the following: (11)Review of discount window operations (A)In generalNot 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. (B)ContentsThe review required by subparagraph (A) shall include a consideration of— (i)the effectiveness of the discount window in providing liquidity to financial institutions, including in times of financial stress; (ii)whether the technology infrastructure, including means of communications, are sufficient to support the timely provision of liquidity, including in times of financial stress; (iii)the effectiveness of cybersecurity measures implemented with respect to discount window operations; (iv)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; (v)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; (vi)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; (vii)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; (viii)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— (I)help financial institutions better respond to rapid liquidity shortfalls; and (II)prevent broader financial instability; and (ix)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. (C)Remediation planAfter the Board of Governors completes the review required by subparagraph (A), the Board of Governors, in consultation with the Federal reserve banks, shall— (i)identify deficiencies with the discount window and areas for enhancing discount window effectiveness; and (ii)develop a written plan to remediate the identified deficiencies and implement the identified enhancements, which shall include— (I)an identification of actions that will be taken to enhance discount window effectiveness and remediate identified deficiencies; (II)timelines and milestones for implementing the plan and measures to demonstrate how the implemented improvements will be maintained on an ongoing basis; and (III)measures of managing and controlling any deficiencies and current operations until the plan is implemented in full. (D)Report to Congress on review and plan (i)In generalNot 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— (I)the findings of the review required by subparagraph (A); and (II)the remediation plan required by subparagraph (C). (ii)ConsultationBefore submitting the report required by clause (i), the Board of Governors shall— (I)provide a copy of the proposed report to the Comptroller of the Currency, the Federal Deposit Insurance Corporation, the National Credit Union Administration, and the Secretary of the Treasury; and (II)provide the Comptroller of the Currency, the Federal Deposit Insurance Corporation, the National Credit Union Administration, and the Secretary of the Treasury with an opportunity to provide feedback on the report. (iii)TestimonyThe 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. (E)Annual reports to Congress (i)Reports by the BoardThe 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). (ii)Reports by the Inspector GeneralThe 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). (F)Confidential report informationAny report required under this paragraph may contain a confidential annex containing information that, if made public, could— (i)impact monetary policy, financial stability, or cybersecurity; or (ii)significantly endanger the safety and soundness of any financial institution. (G)RepealThis 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..

502.Keeping Deposits Local (a)Amount of reciprocal deposits that are not considered To be funds obtained by or through a deposit brokerSection 29(i)(1)(C) of the Federal Deposit Insurance Act (12 U.S.C. 1831f(i)(1)(C)) is amended by striking $96,333,333,333 and inserting $250,000,000,000. (b)Definition of Agent InstitutionSection 29(i) of the Federal Deposit Insurance Act (12 U.S.C. 1831f(i)) is amended— (1)in paragraph (2)(A)— (A)in clause (i), by striking subclause (I) and inserting the following: (I)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; (B)by redesignating clauses (ii) and (iii) as clauses (iii) and (iv), respectively; and (C)by inserting after clause (i) the following: (ii)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;; and (2)by adding at the end the following: (3)Reservation of authorityIf 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.. (c)Reciprocal deposits study (1)In generalThe Federal Deposit Insurance Corporation, in consultation with the Board of Governors of the Federal Reserve System, shall carry out a study on reciprocal deposits. (2)ContentsThe study required under paragraph (1) shall include— (A)an analysis of how reciprocal deposits have performed since 2018, which shall include— (i)the use of quantitative and qualitative data; (ii)a breakdown of the usage of reciprocal deposits by size of insured depository institution; (iii)the usage of reciprocal deposits during periods of stress; and (iv)an analysis, to the extent practicable, of end-user depositors, such as municipalities, businesses, and non-profit organizations, that drive demand for reciprocal products; (B)an analysis, to the extent practicable, of how reciprocal deposits compare to other deposit arrangements; and (C)an analysis of the benefits and potential risks of reciprocal deposits. (3)ReportNot 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). VIPromoting Bank Competition and Merger Clarity

601.Bank Competition Modernization (a)In generalSection 18(c) of the Federal Deposit Insurance Act (12 U.S.C. 1828(c)), as amended by section 604(c), is further amended— (1)in paragraph (4)(C)— (A)in clause (i), by striking or at the end; (B)in clause (ii), by striking the period at the end and inserting ; or; and (C)by adding at the end the following: (iii)the proposed merger transaction would result in an entity with less than $10,000,000,000 in assets and would not result in there being only one insured depository institution with a physical presence in any relevant metropolitan statistical area.; and (2)by adding at the end the following: (16)For merger transactions resulting in institutions with less than $10,000,000,000 in assets and that would not result in there being only one insured depository institution with a physical presence in any relevant metropolitan statistical areaNotwithstanding paragraph (5), if a proposed merger transaction would result in an institution with less than $10,000,000,000 in assets and would not result in there being only one insured depository institution with a physical presence in any relevant metropolitan statistical area, then the responsible agency shall not consider whether such merger transaction would— (A)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 (B)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.. (b)For bank holding companiesSection 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: (8)For proposed transactions resulting in companies with less than $10,000,000,000 in assets and that would not result in there being only one insured depository institution with a physical presence in any relevant metropolitan statistical areaNotwithstanding 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 and would not result in there being only one insured depository institution with a physical presence in any relevant metropolitan statistical area, then the Board shall not consider whether such acquisition, merger, or consolidation would— (A)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 (B)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.. (c)For savings and loan holding companiesSection 10(e) of the Home Owners’ Loan Act (12 U.S.C. 1467a(e)), as amended by section 604(b), is further amended by adding at the end the following: (10)For proposed transactions resulting in companies with less than $10,000,000,000 in assets and that would not result in there being only one insured depository institution with a physical presence in any relevant metropolitan statistical areaNotwithstanding 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 and would not result in there being only one insured depository institution with a physical presence in any relevant metropolitan statistical area, then the Board shall not consider whether the transaction would— (A)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 (B)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..

602.Merger Agreement Approvals Clarity and Predictability (a)StudyThe 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— (1)include an evaluation of relevant quantifiable metrics; (2)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; (3)consider the benefits and risks of utilizing different merger review approaches and procedures in compliance with the law; and (4)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. (b)ReportNot 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). (c)DefinitionsIn this section: (1)ApplicationThe term application means an application, notice, or other similar request for permission submitted to a Federal depository institution regulatory agency. (2)Federal depository institution regulatory agencyThe 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. (3)Insured depository institutionThe term insured depository institution— (A)has the meaning given that term in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813); and (B)means an insured credit union, as defined in section 101 of the Federal Credit Union Act (12 U.S.C. 1752). (4)Insured depository institution merger applicationThe 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— (A)section 10(e) of the Home Owners’ Loan Act (12 U.S.C. 1467a(e)); (B)section 205(b) of the Federal Credit Union Act (12 U.S.C. 1785(b)); (C)section 7(j) of the Federal Deposit Insurance Act (12 U.S.C. 1817(j)); (D)section 18(c)(2) of the Federal Deposit Insurance Act (12 U.S.C. 1828(c)(2)); (E)section 3 of the Bank Holding Company Act of 1956 (12 U.S.C. 1842); and (F)section 4 of the Bank Holding Company Act of 1956 (12 U.S.C. 1843).

603.Merger Process Review (a)ReviewNot 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— (1)include an evaluation of relevant quantifiable metrics, including mean and median application processing times; (2)identify sources of delay that may hinder the timely consummation of proposals that meet the relevant statutory factors; (3)consider the benefits and risks of utilizing different merger review approaches and procedures in compliance with the law; (4)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 (5)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. (b)ReportEach 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. (c)Agency responseIn 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. (d)DefinitionsIn this section: (1)ApplicationThe term application means an application, notice, or other similar request for permission submitted to a Federal depository institution regulatory agency. (2)Federal depository institution regulatory agencyThe 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. (3)Insured depository institutionThe term insured depository institution— (A)has the meaning given that term in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813); and (B)means an insured credit union, as defined in section 101 of the Federal Credit Union Act (12 U.S.C. 1752). (4)Insured depository institution merger applicationThe 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— (A)section 10(e) of the Home Owners’ Loan Act (12 U.S.C. 1467a(e)); (B)section 205(b) of the Federal Credit Union Act (12 U.S.C. 1785(b)); (C)section 7(j) of the Federal Deposit Insurance Act (12 U.S.C. 1817(j)); (D)section 18(c)(2) of the Federal Deposit Insurance Act (12 U.S.C. 1828(c)(2)); (E)section 3 of the Bank Holding Company Act of 1956 (12 U.S.C. 1842); and (F)section 4 of the Bank Holding Company Act of 1956 (12 U.S.C. 1843).

604.Bank Failure Prevention (a)Bank holding companiesSection 3(b)(1) of the Bank Holding Company Act of 1956 (12 U.S.C. 1842(b)(1)) is amended— (1)by striking Upon receiving and inserting the following: (A)In generalUpon receiving; (2)by striking required and inserting acquired; (3)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 (4)by adding at the end the following: (B)Complete record on an application (i)Notice to applicantNot 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— (I)confirms the record on the application is complete; or (II)details all additional information that is required for the record on that application to be complete. (ii)Extension of noticeNotwithstanding clause (i), the Board may, if an application is complex, extend the 30-day period described under clause (i) for an additional period not to exceed 60 days. (iii)Receipt of response; deeming of complete recordUpon 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— (I)determines that the applicant’s response was materially deficient; and (II)not later than 30 days after the date on which the Board received the response, provides the applicant a detailed notice describing the deficiencies. (iv)Treatment of third-party informationIn 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. (C)Deadline for determination (i)In generalNotwithstanding 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. (ii)Failure to make a determinationIf 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. (iii)Tolling of periodThe 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).. (b)Savings and loan holding companiesSection 10(e) of the Home Owners’ Loan Act (12 U.S.C. 1467a(e)) is amended— (1)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; (2)by redesignating paragraph (7) as paragraph (9); and (3)by inserting after paragraph (6) the following: (7)Complete record on an application (A)Notice to applicantNot 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— (i)confirms the record on the application is complete; or (ii)details all additional information that is required for the record on that application to be complete. (B)Extension of noticeNotwithstanding subparagraph (A), the Board may, if an application is complex, extend the 30-day period described under subparagraph (A) for a period not to exceed 60 days. (C)Receipt of response; deeming of complete recordUpon 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— (i)determines that the applicant’s response was materially deficient; and (ii)not later than 30 days after the date on which the Board received the response, provides the applicant a detailed notice describing the deficiencies. (D)Treatment of third-party informationIn 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. (8)Deadline for determination (A)In generalNotwithstanding 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. (B)Failure to make a determinationIf 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. (C)Tolling of periodThe 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).. (c)Insured depository institutionsSection 18(c) of the Federal Deposit Insurance Act (12 U.S.C. 1828(c)) is amended by adding at the end the following: (14)Complete record on an application (A)Notice to applicantNot 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— (i)confirms the record on the application is complete; or (ii)details all additional information that is required for the record on that application to be complete. (B)Extension of noticeNotwithstanding subparagraph (A), the responsible agency may, if an application is complex, extend the 30-day period described under subparagraph (A) for a period not to exceed 60 days. (C)Receipt of response; deeming of complete recordUpon 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— (i)determines that the applicant’s response was materially deficient; and (ii)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. (D)Treatment of third-party informationIn 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. (15)Deadline for determination (A)In generalNotwithstanding 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. (B)Failure to make a determinationIf 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. (C)Tolling of periodThe 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).. VIIStrengthening Transparency and Involvement in Bank Resolutions

701.Least Cost Exception (a)In generalSection 13(c)(4) of the Federal Deposit Insurance Act (12 U.S.C. 1823(c)(4)) is amended— (1)in subparagraph (A)(ii), by inserting except as provided in subparagraph (I), before the total amount; (2)in subparagraph (E)(i), by inserting and except as provided in subparagraph (I), after appropriate,; and (3)by adding at the end the following: (I)Least cost resolution exception (i)In generalWith 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— (I)the Corporation determines that the selected alternative complies with the requirements of clause (iii); and (II)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. (ii)Maximum cost to the Deposit Insurance FundNot 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). (iii)Requirements describedThe requirements for the selected alternative described in clause (i) are as follows: (I)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. (II)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). (III)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— (aa)made over a period to be determined by the Corporation, but which may not be less than 5 years; and (bb)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. (iv)Report to CongressNot 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. (v)Cost determinationsAll cost determinations required under this subparagraph shall be made in accordance with subparagraphs (B) and (C). (vi)DefinitionsIn this subparagraph: (I)Covered alternativeThe 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. (II)Global systemically important banking organizationThe 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.. (b)Rule of constructionSection 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).

702.Enhancing Bank Resolution Participation (a)StudyThe 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— (1)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; (2)the use by the Federal Deposit Insurance Corporation of the modified bidder qualification process; (3)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; (4)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; (5)with respect to such receiverships, the extent to which greater use of shelf charters and modified bidder qualification processes could have— (A)expanded the pool of participants in the acquisition of the assets or liabilities of such failed insured depository institutions; (B)resulted in greater competition and diversity in market outcomes; (C)protected the Deposit Insurance Fund; or (D)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; (6)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 (7)any benefits and risks of private equity ownership of banks through the use of shelf charters and modified bidder qualification processes. (b)ReportNot 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— (1)all findings and determinations made in carrying out the study required under subsection (a); and (2)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. (c)DefinitionsIn this section: (1)Insured depository institutionThe term insured depository institution has the meaning given the term in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813). (2)Modified bidder qualification processThe 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. (3)Shelf charterThe 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.

703.Failing Bank Acquisition Fairness (a)Concentration limit exceptions only available to avoid serious adverse economic or financial effects (1)Concentration limits with respect to deposits (A)Federal Deposit Insurance ActThe Federal Deposit Insurance Act (12 U.S.C. 1811 et seq.) is amended— (i)in section 18(c)(13)— (I)by amending subparagraph (B) to read as follows: (B)Subparagraph (A) shall not apply to an interstate merger transaction if— (i)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 (ii)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).; and (II)in subparagraph (C)— (aa)in clause (i), by striking and at the end; (bb)in clause (ii), by striking the period at the end and inserting a semicolon; and (cc)by adding at the end the following: (iii)the term qualified bid means an application, proposed application, or bid from a company where— (I)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 (II)upon consummation of the transaction, the resulting insured depository institution is well capitalized; (iv)the term well capitalized— (I)with respect to an insured depository institution, has the meaning given such term in section 38(b) (12 U.S.C. 1831o(b)); (II)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)); (III)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 (IV)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 (v)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)).; and (ii)in section 44, by amending subsection (e) to read as follows: (e)Exception for Banks in Default or in Danger of Default (1)General exceptionThe 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— (A)the merger transaction involves 1 or more banks in default or in danger of default; or (B)the Corporation provides assistance under section 13(c) to facilitate such merger transaction. (2)Concentration limit exceptionThe responsible agency may, without regard to subsection (b)(2), approve an application under subsection (a)(1) for approval of a merger transaction if— (A)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 (B)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). (3)Qualified bid definedIn this subsection, the term qualified bid has the meaning given that term in section 18(c)(13)(C).. (B)Bank Holding Company Act of 1956The Bank Holding Company Act of 1956 (12 U.S.C. 1841 et seq.) is amended— (i)in section 3(d), by amending paragraph (5) to read as follows: (5)Exception for banks in default or in danger of default (A)General exceptionThe Board may, without regard to subparagraph (B) or (D) of paragraph (1) or paragraph (3), approve an application pursuant to paragraph (1)(A) if— (i)the application is for an acquisition of 1 or more banks in default or in danger of default; or (ii)the application is for an acquisition with respect to which assistance is provided under section 13(c) of the Federal Deposit Insurance Act. (B)Concentration limit exceptionThe Board may, without regard to paragraph (2), approve an application pursuant to paragraph (1)(A) if— (i)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 (ii)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). (C)Qualified bid definedIn this paragraph, the term qualified bid has the meaning given that term in section 18(c)(13)(C) of the Federal Deposit Insurance Act.; and (ii)in section 4(i)(8), by amending subparagraph (B) to read as follows: (B)ExceptionSubparagraph (A) shall not apply to an acquisition if— (i)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 (ii)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). . (2)Concentration limit with respect to consolidated liabilitiesSection 14(c) of the Bank Holding Company Act of 1956 (12 U.S.C. 1852(c)) is amended— (A)by redesignating paragraphs (1), (2), and (3) as subparagraphs (A), (B), and (C), respectively; (B)by striking With the and inserting the following: (1)In generalWith the; and (C)by adding at the end the following: (2)LimitationThe 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).. (b)Congressional notification and justification for waivers (1)In generalWhenever 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)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; (B)a description of alternative bids or outcomes considered, including efforts to solicit and encourage bids from entities that would not require a waiver; (C)an explanation of why alternative bids were not selected, if applicable; and (D)any recommendations for legislative or regulatory changes to improve competition in future insured depository institution resolutions. (2)Public disclosureThe 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. (c)Limitation on considering bad faith bids in least cost determinationSection 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: (J)Limitation on considering bad faith bidsIn making a determination under this paragraph of whether an exercise of authority is the least costly to the Deposit Insurance Fund, any application, proposed application, or bid that would result in violation of— (i)section 18(c)(13) or 44(b)(2), or (ii)section 3(d)(2), 4(i)(8), or 14 of the Bank Holding Company Act of 1956,shall not be considered a possible method for meeting the Corporation’s obligation under this section for purposes of subparagraph (A).. VIIIFacilitating Innovation and Bank Partnerships

801.Merchant Banking Modernization (a)In generalSection 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 Main Street 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. (b)Merchant banking study (1)In generalNot later than 1 year after the date of enactment of this Act, the Board of Governors of the Federal Reserve System shall carry out a study on merchant banking investments to assess— (A)the number, investment size, holding period, and risk characteristics of merchant banking investments by financial holding companies, with the assessment of investment sizes and holding periods based on the average, median, and distribution of the investment sizes and holding periods; (B)the types of businesses, projects, assets, and activities in which such merchant banking investments are made, including the extent to which such merchant banking investments support infrastructure projects and housing development and construction; and (C)any information, analyses, or findings related to merchant banking investments that the Board determines to be relevant. (2)ReportNot later than the end of the 18-month period beginning on the date of enactment of this Act, the Board 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 this subsection.

802.Bank-Fintech Partnership Enhancement (a)Study on bank-Fintech partnerships (1)StudyThe 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— (A)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 (B)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. (2)ReportNot 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). (3)Banking organization definedIn 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). (b)Study on credit union-Fintech partnerships (1)StudyThe National Credit Union Administration shall carry out a study of— (A)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 (B)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. (2)ReportNot 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).

803.Discretionary surplus fund (a)In generalThe dollar amount specified under section 7(a)(3)(A) of the Federal Reserve Act (12 U.S.C. 289(a)(3)(A)) is reduced by $425,000,000. (b)Effective dateThe amendment made by subsection (a) shall take effect on September 1, 2036. Passed the House of Representatives July 21, 2026.Kevin F. McCumber,Clerk.

119 HR 6955 IH: Main Street Act U.S. House of Representatives 2026-01-07 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. I119th CONGRESS2d SessionH. R. 6955IN THE HOUSE OF REPRESENTATIVESJanuary 7, 2026Mr. Hill of Arkansas (for himself, Mr. Barr, Mr. Huizenga, Mr. Lucas, Mr. Sessions, Mrs. Wagner, Mr. Williams of Texas, Mr. Emmer, Mr. Loudermilk, Mr. Davidson, Mr. Rose, Mr. Steil, Mr. Timmons, Mr. Stutzman, Mr. Norman, Mr. Meuser, Mrs. Kim, Mr. Donalds, Mr. Garbarino, Mr. Fitzgerald, Mr. Flood, Mr. Lawler, Ms. De La Cruz, Mr. Ogles, Mr. Nunn of Iowa, Mrs. McClain, Ms. Salazar, Mr. Downing, Mr. Haridopolos, and Mr. Moore of North Carolina) introduced the following bill; which was referred to the Committee on Financial ServicesA BILLTo make improvements to the Federal banking laws, and for other purposes.

1.Short title; table of contents (a)Short titleThis Act may be cited as the Main Street Capital Access Act or the Main Street Act. (b)Table of contentsThe table of contents for this Act is as follows: Sec. 1. Short title; table of contents. Title I—New Bank Formation and Local Community Access Sec. 101. Promoting New Bank Formation. Sec. 102. New Bank Application Numbers Knowledge. Sec. 103. Bank Failure Prevention. Sec. 104. Rural Depositories Revitalization Study. Title II—Tailoring Bank Regulation Sec. 201. Taking Account of Institutions with Low Operation Risk. Sec. 202. Small Bank Holding Company Relief. Sec. 203. Community Bank Leverage Improvement and Flexibility for Transparency. Sec. 204. Tailoring and Indexing Enhanced Regulations. Title III—Fair and Transparent Bank Supervision Sec. 301. Halting Uncertain Methods and Practices in Supervision. Sec. 302. Fair Audits and Inspections for Regulators’ Exams. Sec. 303. Supervisory Modifications for Appropriate Risk-based Testing. Sec. 304. Tailored Regulatory Updates for Supervisory Testing. Sec. 305. Stress Testing Accountability and Transparency. Sec. 306. Community Bank Representation. Sec. 307. Financial Integrity and Regulation Management. Title IV—Regulatory Accountability and Transparency Sec. 401. FDIC Board Accountability. Sec. 402. Stop Agency Fiat Enforcement of Guidance. Sec. 403. Regulatory Efficiency, Verification, Itemization, and Enhanced Workflow. Sec. 404. American Financial Institution Regulatory Sovereignty and Transparency. Title V—Strengthening Local Bank Funding Sec. 501. Bringing the Discount Window into the 21st Century. Sec. 502. Keeping Deposits Local. Sec. 503. Community Bank Deposit Access. Title VI—Promoting Bank Competition and Merger Clarity Sec. 601. Bank Competition Modernization. Sec. 602. Merger Agreement Approvals Clarity and Predictability. Sec. 603. Merger Process Review. Title VII—Strengthening Transparency and Involvement in Bank Resolutions Sec. 701. Least Cost Exception. Sec. 702. Enhancing Bank Resolution Participation. Title VIII—Facilitating Innovation and Bank Partnerships Sec. 801. Merchant Banking Modernization. Sec. 802. Bank-Fintech Partnership Enhancement. INew Bank Formation and Local Community Access

101.Promoting New Bank Formation (a) Phase-In of capital standards 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— (1) the date on which the depository institution became an insured depository institution; or (2) 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. (b)Changes to business plans (1)In generalDuring 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. (2)Review of changesThe 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)— (A)approve, conditionally approve, or deny such request; and (B)notify the applicant of such decision and, if the agency denies the request— (i)provide the applicant with the reason for such denial; and (ii)suggest changes to the request that, if adopted, would allow the agency to approve such request. (3)Result of failure to actIf 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. (c)Rural community depository institution leverage ratio (1)In generalDuring 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— (A)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 (B)7.5 percent. (2)Phase-In authorityThe 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). (3)DefinitionsIn this subsection: (A)Community Bank Leverage RatioThe 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). (B)Rural areaThe term rural area means— (i)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 (ii)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. (C)Rural depository institutionThe term rural depository institution means a depository institution— (i)with total consolidated assets of less than $10,000,000,000; and (ii)located in a rural area. (d)Agricultural loan authority for Federal savings associationsSection 5(c) of the Home Owners’ Loan Act (12 U.S.C. 1464(c)) is amended— (1)in paragraph (1), by adding at the end the following: (V)Agricultural loansSecured or unsecured loans for agricultural purposes.; and (2)in paragraph (2)(A), by striking business, or agricultural and inserting or business. (e)Study on de novo insured depository institutions (1)StudyThe Federal banking agencies shall, jointly, carry out a study on— (A)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 (B)ways to promote more de novo insured depository institutions in areas currently underserved by insured depository institutions. (2)Report to CongressNot 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 Congress containing all findings and determinations made in carrying out the study required under paragraph (1). (f)DefinitionsIn 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.

102.New Bank Application Numbers Knowledge (a)Annual report on national bank and Federal savings association charter applications 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: (1)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. (2)The mean and median times for preliminary approval of such applications. (3)The mean and median times for final approval of such applications. (4)To the extent practicable, common reasons leading to the denial, withdrawal, or expiration of preliminary approval of such applications. (b)Annual report on Federal credit union charter applicationsThe 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: (1)The number of Federal credit union charter applications received, approved on a final basis, denied, withdrawn, inactive, or returned pending resubmission. (2)The mean and median times for final approval of such applications. (3)To the extent practicable, common reasons leading to application denial, withdrawal, inactivity, or to applications being returned for resubmission. (c)Annual report on depository institution holding company applications (1)In generalThe 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: (A)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. (B)The mean and median times to approve such applications. (C)To the extent practicable, common reasons leading to denial or withdrawal of such applications. (2)Top-tier depository institution holding company definedThe 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. (d)Annual report on Federal deposit insurance applications 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: (1)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. (2)The mean and median times to approve such applications. (3)To the extent practicable, common reasons leading to denial or withdrawal of such applications. (e)Annual report on State depository institution and State credit union charter applications (1)In generalThe 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: (A)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. (B)The mean and median times to approve such applications, with times for each State shown separately. (C)To the extent practicable, common reasons leading to denial or withdrawal of such applications. (2)DefinitionsIn this subsection: (A)StateThe term State means any State of the United States, the District of Columbia, and any territory of the United States. (B)State bankThe term State bank has the meaning given such term in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813). (C)State depository institutionThe term State depository institution means— (i)a State depository institution, as defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813); and (ii)a State credit union, as defined in section 101 of the Federal Credit Union Act (12 U.S.C. 1752). (D)State savings associationThe term State savings association has the meaning given such term in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813).

103.Bank Failure Prevention (a)Bank holding companiesSection 3(b)(1) of the Bank Holding Company Act of 1956 (12 U.S.C. 1842(b)(1)) is amended— (1)by striking Upon receiving and inserting the following: (A)In generalUpon receiving; (2)by striking required and inserting acquired; (3)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 (4)by adding at the end the following: (B)Complete record on an application (i)Notice to applicantNot 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— (I)confirms the record on the application is complete; or (II)details all additional information that is required for the record on that application to be complete. (ii)Extension of noticeNotwithstanding clause (i), the Board may, if an application is complex, extend the 30-day period described under clause (i) for an additional 30 days. (iii)Receipt of response; deeming of complete recordUpon 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— (I)determines that the applicant’s response was materially deficient; and (II)not later than 30 days after the date on which the Board received the response, provides the applicant a detailed notice describing the deficiencies. (iv)Treatment of third-party informationIn 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. (C)Deadline for determination (i)In generalNotwithstanding subparagraphs (A) and (B), the Board shall grant or deny an application submitted under this section not later than 90 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. (ii)Failure to make a determinationIf 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. (iii)Tolling of periodThe 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).. (b)Savings and loan holding companiesSection 10(e) of the Home Owners’ Loan Act (12 U.S.C. 1467a(e)) is amended— (1)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; (2)by redesignating paragraph (7) as paragraph (9); and (3)by inserting after paragraph (6) the following: (7)Complete record on an application (A)Notice to applicantNot 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— (i)confirms the record on the application is complete; or (ii)details all additional information that is required for the record on that application to be complete. (B)Extension of noticeNotwithstanding subparagraph (A), the Board may, if an application is complex, extend the 30-day period described under subparagraph (A) for an additional 30 days. (C)Receipt of response; deeming of complete recordUpon 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— (i)determines that the applicant’s response was materially deficient; and (ii)not later than 30 days after the date on which the Board received the response, provides the applicant a detailed notice describing the deficiencies. (D)Treatment of third-party informationIn 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. (8)Deadline for determination (A)In generalNotwithstanding any other provision of this subsection, the Board shall grant or deny an application submitted under this subsection not later than 90 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. (B)Failure to make a determinationIf 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. (C)Tolling of periodThe 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).. (c)Insured depository institutionsSection 18(c) of the Federal Deposit Insurance Act (12 U.S.C. 1828(c)) is amended by adding at the end the following: (14)Complete record on an application (A)Notice to applicantNot 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— (i)confirms the record on the application is complete; or (ii)details all additional information that is required for the record on that application to be complete. (B)Extension of noticeNotwithstanding 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. (C)Receipt of response; deeming of complete recordUpon 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— (i)determines that the applicant’s response was materially deficient; and (ii)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. (D)Treatment of third-party informationIn 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. (15)Deadline for determination (A)In generalNotwithstanding any other provision of this subsection, the responsible agency shall grant or deny a merger application submitted under this subsection not later than 90 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. (B)Failure to make a determinationIf 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. (C)Tolling of periodThe 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)..

104.Rural Depositories Revitalization Study (a)StudyThe Federal banking agencies shall, jointly, carry out a study— (1)to identify methods to improve the growth, capital adequacy, and profitability of depository institutions in the United States that primarily serve rural areas; and (2)to identify Federal statutes (other than appropriations Acts) or regulations of the Federal banking agencies that limit— (A)the methods identified under paragraph (1); or (B)the establishment of de novo depository institutions in rural areas. (b)ReportNot later than 1 year after the date of enactment of this Act, the Federal banking agencies shall, jointly, issue a report to Congress containing all findings and determinations made in carrying out the study required under subsection (a). (c)DefinitionsIn this section: (1)Depository institutionThe term depository institution has the meaning given that term in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813). (2)Federal banking agenciesThe 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. (3)RuralWith respect to an area, the term rural has the meaning given that term in section 1026.35(b)(2)(iv)(A) of title 12, Code of Federal Regulations. IITailoring Bank Regulation

201.Taking Account of Institutions with Low Operation Risk (a)Tailoring regulation to business model and risk (1)DefinitionsIn this subsection— (A)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 (B)the term regulatory action— (i)means any proposed, interim, or final rule or regulation; and (ii)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. (2)Consideration and tailoringFor any regulatory action occurring after the date of enactment of this Act, each Federal financial institutions regulatory agency shall— (A)take into consideration the risk profile and business models of each type of institution or class of institutions subject to the regulatory action; and (B)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. (3)Factors to considerIn carrying out the requirements of paragraph (2) with respect to a regulatory action, each Federal financial institutions regulatory agency shall consider— (A)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; (B)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 (C)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. (4)Notice of proposed and final rulemakingEach 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). (5)Reports to CongressNot 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. (6)Limited look-back application (A)In generalEach Federal financial institutions regulatory agency shall— (i)conduct a review of all final regulations issued pursuant to statutes enacted during the period beginning on the date that is 15 years before the date on which this Act is introduced and ending on the date of enactment of this Act; and (ii)apply the requirements of this section to the regulations described in clause (i). (B)RevisionAny regulation revised under subparagraph (A) shall be revised not later than 3 years after the date of enactment of this Act. (b) Short-Form call reports for all banks eligible for the community bank leverage ratio 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)). (c)Report to Congress on modernization of supervisionNot 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: (1)Changing bank business models. (2)Examiner workforce and training. (3)The structure of supervisory activities within banking agencies. (4)Improving bank-supervisor communication and collaboration. (5)The use of supervisory technology. (6)Supervisory factors uniquely applicable to community banks. (7)Changes in statutes necessary to achieve more effective supervision.

202.Small Bank Holding Company ReliefNot 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 $25,000,000,000 for any bank holding company or savings and loan holding company.

203.Community Bank Leverage Improvement and Flexibility for Transparency (a)Community Bank Leverage Ratio (1)In generalSection 201 of the Economic Growth, Regulatory Relief, and Consumer Protection Act (12 U.S.C. 5371 note) is amended— (A)in subsection (a)(3)(A), by striking $10,000,000,000 and inserting $15,000,000,000; and (B)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 8 percent. (2)Rulemaking deadlineNot 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. (b)Review of the Community Bank Leverage Ratio (1)In generalThe 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— (A)those qualifying community banks with fewer assets; and (B)providing regulatory compliance burden relief so that the CBLR is simple to apply. (2)ReportNot 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— (A)all findings and determinations made in carrying out the review under paragraph (1); and (B)specific recommendations on modifications, if any, to— (i)the calculation of the numerator and denominator of the CBLR; (ii)the treatment of specific asset classes or exposures to better reflect the risk profiles of community banks; (iii)the definition of and qualifying criteria for a qualifying community bank; (iv)enhancements to the procedures for opting into or out of the CBLR framework, including streamlined reporting and transition mechanisms; (v)the grace period to facilitate the transition to and from a modified CBLR regime; and (vi)any statutory changes that may be needed to address such recommendations. (3)Qualifying community bank definedIn 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).

204.Tailoring and Indexing Enhanced Regulations (a) Threshold adjustments To account for historical increases in current-Dollar United States gross domestic product (1) Federal Reserve Act The second subsection (s) (relating to assessments) of section 11 of the Federal Reserve Act (12 U.S.C. 248(s)) is amended— (A) in paragraph (2), by striking $100,000,000,000 each place that term appears and inserting $150,000,000,000; and (B) 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. (2) Bank Holding Company Act of 1956 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. (3) Financial Stability Act of 2010 The Financial Stability Act of 2010 (12 U.S.C. 5311 et seq.) is amended— (A) in section 116(a) (12 U.S.C. 5326(a)), by striking $250,000,000,000 and inserting $370,000,000,000; (B) in section 121(a) (12 U.S.C. 5331(a)), by striking $250,000,000,000 and inserting $370,000,000,000; (C) in section 163(b) (12 U.S.C. 5363(b))— (i) by striking $250,000,000,000 each place that term appears and inserting $370,000,000,000; and (ii) by striking $10,000,000,000 and inserting $15,000,000,000; (D) in section 164 (12 U.S.C. 5364), by striking $250,000,000,000 and inserting $370,000,000,000; and (E) in section 165 (12 U.S.C. 5365)— (i) in subsection (a)— (I) in paragraph (1), by striking $250,000,000,000 and inserting $370,000,000,000; and (II) in paragraph (2)(C), by striking $100,000,000,000 and inserting $150,000,000,000; (ii) in subsection (h)(2), by striking $50,000,000,000 each place that term appears and inserting $75,000,000,000; (iii) in subsection (i)(2)(A), by striking $250,000,000,000 and inserting $370,000,000,000; and (iv) in subsection (j)(1), by striking $250,000,000,000 and inserting $370,000,000,000. (4) Economic Growth, Regulatory Relief, and Consumer Protection Act 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. (b) Periodic adjustments to thresholds To account for future increases in current-Dollar United States gross domestic product (1) In general The Financial Stability Act of 2010 (12 U.S.C. 5311 et seq.) is further amended by adding at the end the following: 177. Periodic adjustments to thresholds to account for increases in current-dollar United States gross domestic product (a) In general 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. (b) Covered thresholds The thresholds described in this subsection are the following: (1) 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. (2) Each bank holding company total consolidated asset amount in— (A) sections 116(a), 121(a), 163(b), 164, 165(a)(1), 165(h)(2), 165(j)(1) of this Act; and (B) section 401(f) of the Economic Growth, Regulatory Relief, and Consumer Protection Act. (3) Each financial company total consolidated asset amount in section 165(i)(2)(A) of this Act. (c) Currency of information 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. (d) Rounding (1) 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. (2) 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. (e) Publication 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. (f) Implementation period 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). 178. Adjustments to thresholds established by rule to account for increases in current-dollar United States gross domestic product (a) Agency review 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— (1) any regulation— (A) implementing section 165 of this Act; or (B) making specific cross-reference to any regulation of the Board of Governors implementing section 165 of this Act; and (2) 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. (b) Modifications required 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— (1) 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; (2) 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 (3) seek to adjust such thresholds, to the extent feasible, with rounding consistent with section 177(d) of this Act. (c) Report 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 Congress containing a description of any modification of any regulation such agency made pursuant to subsection (b). . (2) Clerical amendment 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: Sec. 177. Periodic adjustments to thresholds to account for increases in current-dollar United States gross domestic product. Sec. 178. Adjustments to thresholds established by rule to account for increases in current-dollar United States gross domestic product. . IIIFair and Transparent Bank Supervision

301.Halting Uncertain Methods and Practices in Supervision (a)FindingsCongress finds that— (1)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; (2)the CAMELS rating system relies heavily on examiner judgment, which can lead to subjective and inconsistent ratings across similar institutions; (3)establishing clear, objective measures for each CAMELS component and their relative weighting in determining composite ratings will promote fairness, consistency, and accountability in supervisory assessments; and (4)examination and supervision, as well as the CAMELS rating system, should focus on a financial institution’s material financial condition or solvency. (b)Amendments to the CAMELS Rating System (1)In generalThe Federal Financial Institutions Examination Council Act of 1978 (12 U.S.C. 3301 et seq.) is amended by adding at the end the following: 1012.Amendments to the CAMELS Rating System (a)In generalThe Council shall make recommendations to amend the Uniform Financial Institutions Rating System, and the CAMELS components thereunder, to— (1)establish clear and objective criteria for assessing each CAMELS component; (2)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; (3)either— (A)eliminate the management component of the CAMELS rating system; or (B)revise the management component of the CAMELS rating system to limit the assessment under such component to objective measures of the governance and controls used to manage an institution’s risk profile; (4)ensure that composite ratings consider the financial institution’s compliance with— (A)section 21 of the Federal Deposit Insurance Act (12 U.S.C. 1829b); (B)chapter 2 of title I of Public Law 91–508 (12 U.S.C. 1951 et seq.); (C)subchapter II of chapter 53 of title 31, United States Code; and (D)any other applicable requirements and implementing regulations relating to the prevention of money laundering and terrorist financing; and (5)ensure that composite ratings are determined based on a transparent methodology that is limited to the objective criteria established for each CAMELS component. (b)RulemakingNot 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). (c)Public comment periodIn issuing the rules required under subsection (b), the Federal financial institutions regulatory agencies shall— (1)publish a notice of proposed rulemaking with respect to such rules; and (2)provide for a public comment period of not less than 90 days. (d)Rule of constructionNothing 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.. (2)Well managed definitionSection 2(o)(9)(A) of the Bank Holding Company Act of 1956 (12 U.S.C. 1841(o)(9)(A)) is amended— (A)by striking achievement of and all that follows through a CAMEL and inserting achievement of a CAMEL; (B)by striking ; and and inserting a period; and (C)by striking clause (ii).

302.Fair Audits and Inspections for Regulators’ Exams (a)Timeliness of examinations and examination reportsThe Federal Financial Institutions Examination Council Act of 1978 (12 U.S.C. 3301 et seq.), as amended by section 301, is further amended by adding at the end the following: 1013.Timeliness of examinations and examination reports (a)Timeliness of examinationsA Federal financial institutions regulatory agency shall complete any examination of a financial institution 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. (b)Final examination reportA Federal financial institutions regulatory agency shall provide a final examination report to a financial institution not later than 90 days after the later of— (1)the exit interview for an examination of the institution; or (2)the provision of additional material information by the institution relating to the examination. (c)Exit interview requirementWithin 30 days of completing an examination, a Federal financial institutions regulatory agency shall conduct an exit interview with the financial institution’s senior management, except that such period may be extended by the Federal financial institutions regulatory agency by providing written notice to the institution and the Board describing with particularity the reasons that a longer period is needed to complete the exit interview. (d)Examination materialsUpon the 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.. (b)Timeliness of required permission, regulatory, and reporting guidanceThe 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: 1014.Timeliness of required permission, regulatory, and reporting guidance (a)Request for permission or guidanceWith respect to an action that a financial institution is taking or is intending to take, the financial institution may request a written determination by the applicable Federal financial institutions regulatory agency of— (1)the agency’s non-objection to the financial institution conducting a particular activity; (2)the agency’s interpretation of a law or regulation; and (3)the agency’s interpretation of generally accepted accounting principles or accounting objectives, standards, and requirements. (b)Contents of requestA request made under subsection (a) shall be in writing and contain— (1)the nature of the request; (2)applicable facts relating to the matter; (3)applicable law, regulation, or generally accepted accounting principles relating to the matter; and (4)a summary of the request. (c) Response To request A Federal financial institutions regulatory agency receiving a request under subsection (a) shall, not later than 30 days after receiving the request— (1) 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 (2) 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. (d)Providing missing informationIf a Federal financial institutions regulatory agency informs the financial institution under subsection (c) that the request 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). (e)DeterminationA Federal financial institutions regulatory agency receiving a request under subsection (a) shall make a determination on the request and provide the financial institution with a written notice of such determination— (1)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); or (2)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 (3)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. (f)Reports and publicationEach Federal financial institutions regulatory agency shall, within 120 days after making a determination under paragraph (5), publish a summary of the determination on the public website of the Federal financial institutions regulatory agency. Each Federal financial institutions regulatory agency shall redact any confidential supervisory information about the financial institution, any identifying facts about the financial institution, and any sensitive personally identifiable information, and anonymize any un-redacted information that could, individually or in the aggregate, identify the financial institution.. (c)Office of Independent Examination Review (1)In generalThe 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: 1015.Office of Independent Examination Review (a)EstablishmentThere is established in the Council an Office of Independent Examination Review (the Office). (b)Board of Independent Examination Review (1)In generalThe 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. (2)QualificationsThe President shall appoint the 1 member of the Board from each of the following classes of individuals: (A)Individuals who have been employed by a Federal financial institutions regulatory agency. (B)Individuals who— (i)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; (ii)have either academic or private sector experience; (iii)have relevant work-related experience in consumer affairs or compliance with consumer protection laws with respect to financial institutions; and (iv)are not, and were not during the previous 10-year period, employed by a Federal banking agency, a Federal reserve bank, or the National Credit Union Administration. (C)Individuals— (i)with at least 10 years private sector financial services senior management-level experience; and (ii)recommended by— (I)an insured depository institution; (II)an insured credit union; or (III)a trade association for such institutions or credit unions. (3)Prohibition on certain individuals serving as a Board memberThe President may not appoint an individual as a member of the Board if the individual— (A)is, or was during the previous 2-year period, employed by a Federal financial institutions regulatory agency or a Federal reserve bank; (B)is, or was during the previous 2-year period, employed by a financial institution; or (C)is reporting, or was reporting in the past 5 years, directly or indirectly to a Federal financial institutions regulatory agency official who makes material supervisory determinations. (4)ConsultationIn appointing members of the Board, the President shall consult with the Federal financial institutions regulatory agencies and financial institutions. (5)Term (A)In generalEach member of the Board shall serve for a term of 3 years. (B)Term limitationNo individual may serve more than 2 full terms on the Board. (6)Political affiliationNot more than 2 members of the Board shall be members of the same political party. (7)Quorum (A)In general3 members of the Board shall constitute a quorum. (B)Initial quorumDuring 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. (c)StaffingThe Board is authorized to hire staff to support the activities of the Office of Independent Examination Review. 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. (d)DutiesThe Board shall— (1)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 examinations, examination practices, or examination reports; (2)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; (3)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; (4)conduct a continuing and regular program of examination quality assurance for all examination types conducted by the Federal financial institutions regulatory agencies; (5)carry out an independent review of any supervisory appeal initiated under section 1016; and (6)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. (e)ConfidentialityThe Board and the Council shall keep confidential— (1) all meetings, discussions, and information provided by financial institutions and Federal financial institutions regulatory agencies that involve confidential supervisory information or privileged information; (2)all information and communications exchanged between a financial institution and the Office of Independent Examination Review; and (3) all information and communications exchanged between a Federal financial institutions regulatory agency and the Office of Independent Examination Review. . (2)DefinitionsSection 1003 of the Federal Financial Institutions Examination Council Act of 1978 (12 U.S.C. 3302) is amended— (A)in paragraph (2), by striking and at the end; and (B)by adding at the end the following: (4)the term Board means the Board of Independent Examination Review established under section 1015(b); (5)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; (6)the term insured depository institution has the meaning given that term in section 3 of the Federal Deposit Insurance Act; and (7)the term insured credit union has the meaning given that term in section 101 of the Federal Credit Union Act.. (d)Right to independent review of material supervisory determinationsThe 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: 1016.Right to independent review of material supervisory determinations (a)In generalA 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. (b)Notice (1)TimingA financial institution seeking review of a material supervisory determination under this section shall file a written notice with the Board within 60 days after receiving the final report of examination that is the subject of such review. (2)ExtensionThe 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. (3)Identification of determinationThe written notice shall— (A)identify the material supervisory determination that is the subject of the requested independent examination review; (B)state the reasons why the institution believes that the material supervisory determination is incorrect or should otherwise be modified; and (C)include— (i)a clear and complete statement of all relevant facts and issues; (ii)all arguments that the institution wishes to present; and (iii)all relevant and material documents in the possession of the institution that the institution wishes to be considered. (4)Information made available to institutionAn institution seeking an appeal 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. (c)Determination; right to hearing (1)In generalThe Board shall— (A)determine the merits of the appeal on the record, including whether the material supervisory determination being appealed should be upheld, canceled, or modified; or (B)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. (2)Right to obtain testimonyA 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. (3)Basis of decisionThe Board shall issue a written decision based upon the record of the examination, supplemented by the record established at any hearing. (4)Standard of reviewThe Board’s review of a material supervisory determination being appealed under this subsection shall be de novo, and the Board shall not defer to the opinions of the examiner or agency, but shall independently determine the appropriateness of the agency’s material supervisory determination based upon the relevant statutes, regulations, other appropriate guidance, and the evidentiary record. (d)Final decisionA decision by the Board on an independent review under this section shall— (1)be made not later than 60 days after the record has been closed; and (2)be deemed final agency action and shall bind the agency whose supervisory determination was the subject of the review and the financial institution requesting the review. (e)Right to judicial reviewA financial institution shall have the right to petition for review of a Board determination made under subsection (d) by filing a petition for review not later than 60 days after the date on which the decision is made in the United States Court of Appeals for the District of Columbia Circuit or the Circuit in which the financial institution is located. (f)Referral of violationsIf 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. (g)Annual report (1)In generalThe 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. (2)ConfidentialityIn 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. (h)Retaliation prohibited (1)In generalA Federal financial institutions regulatory agency may not— (A)retaliate against a financial institution, including service providers, or any institution-affiliated party, for exercising appellate rights under this section; or (B)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. (2)RetaliationFor 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. (i)RulemakingThe Board shall issue rules to establish procedures for hearings described under this section, including that— (1)a financial institution may appear at the hearing personally or through counsel; (2)a financial institution may provide an oral and written presentation at the hearing; (3)the Board may ask questions of any person participating in the hearing; (4)the hearing may not involve— (A)a cross-examination; or (B)discovery; (5)the hearing shall not be governed by the Federal Rules of Evidence; and (6)the Board shall have a verbatim transcript of the hearing prepared. (j)Safety and soundness exceptionThe 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.. (e)Additional amendments (1)Regulator appeals process, ombudsman, and alternative dispute resolution (A)In generalSection 309 of the Riegle Community Development and Regulatory Improvement Act of 1994 (12 U.S.C. 4806) is amended— (i)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); (ii)by striking subsections (a), (b), and (c); (iii)by redesignating subsections (d), (e), (f), and (g) as subsections (a), (b), (c), and (d), respectively; (iv)in subsection (b), as so redesignated— (I)in paragraph (2)— (aa)in subparagraph (B), by striking and at the end; (bb)in subparagraph (C), by striking the period and inserting ; and; and (cc)by adding at the end the following: (D)ensure that appropriate safeguards exist for protecting any party from retaliation by any agency for exercising rights under this subsection.; and (II)by adding at the end the following: (6)RetaliationFor 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.; and (v)in paragraph (1)(A) of subsection (c), as so redesignated— (I)in clause (ii), by striking ; and and inserting a semicolon; (II)in clause (iii), by striking ; and and inserting a semicolon; and (III)by adding at the end the following: (iv)any issue specifically listed in an exam report as a matter requiring attention by the institution’s management or board of directors; and (v)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. (B)EffectNothing in this subsection affects the authority of an appropriate Federal banking agency or the National Credit Union Administration Board to take enforcement or other supervisory action. (2)Federal Credit Union ActSection 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. (3)Federal Financial Institutions Examination Council ActThe Federal Financial Institutions Examination Council Act of 1978 (12 U.S.C. 3301 et seq.) is amended— (A)in section 1003 (12 U.S.C. 3302)— (i)by striking paragraph (1) and inserting the following: (1)the term Federal financial institutions regulatory agencies— (A)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 (B)includes the Bureau of Consumer Financial Protection for purposes of sections 1012 through 1015;; and (ii)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;; (B)in section 1004(a)(4) (12 U.S.C. 3303), by striking Consumer Financial Protection Bureau and inserting Bureau of Consumer Financial Protection; and (C)in section 1005 (12 U.S.C. 3304)— (i)by striking One-fifth and inserting One-fourth; and (ii)by inserting described under section 1003(1)(A) after agencies.

303.Supervisory Modifications for Appropriate Risk-based Testing (a)Examination relief for certain well managed and well capitalized financial institutions (1)Insured depository institutionsSection 10(d) of the Federal Deposit Insurance Act (12 U.S.C. 1820(d)) is amended by adding at the end the following: (11)Examination relief for certain well managed and well capitalized insured depository institutions (A)In generalThe following shall apply to a well managed and well capitalized insured depository institution with $6,000,000,000 or less in consolidated assets: (i)Alternating limited-scope examinationsAfter 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. (ii)Combined examinationsIf 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. (B)ExceptionSubparagraph (A) shall not apply to an insured depository institution if— (i)the insured depository institution is currently subject to a formal enforcement proceeding or order by the Corporation or the appropriate Federal banking agency; or (ii)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. (C)RulemakingNot 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— (i)establish procedures for the limited-scope examinations described in subparagraph (A)(i); (ii)establish procedures for reviewing insured depository institutions described under subparagraph (A), that— (I)experience material changes in financial condition or operational risk profile between scheduled examinations; or (II)have failed to comply with Federal or State banking laws and regulations; and (iii)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. (D)Rule of constructionNothing 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. (E)DefinitionsIn this paragraph: (i)Consumer compliance examinationThe 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). (ii)Well capitalizedThe term well capitalized has the meaning given that term in section 38(b). (iii)Well managedWith 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.. (2)Insured credit unionsSection 204 of the Federal Credit Union Act (12 U.S.C. 1784) is amended by adding at the end the following: (h)Examination relief for certain well managed and well capitalized insured credit unions (1)In generalThe following shall apply to a well managed and well capitalized insured credit union with $6,000,000,000 or less in consolidated assets: (A)Alternating limited-scope examinationsAfter 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. (B)Combined examinationsIf 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. (2)ExceptionParagraph (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. (3)RulemakingNot 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— (A)establish procedures for the limited-scope examinations described in paragraph (1)(A); (B)establish procedures for reviewing insured credit unions that— (i)experience material changes in financial condition or operational risk profile between scheduled examinations; or (ii)have failed to comply with Federal or State banking laws and regulations; and (C)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. (4)Rule of constructionNothing 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. (5)DefinitionsIn this paragraph: (A)Consumer compliance examinationThe 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). (B)Well capitalizedThe term well capitalized has the meaning given that term in section 216(c). (C)Well managedWith 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.. (b)Examination practices (1)Insured depository institutionsSection 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: (12)Examination practicesWith 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— (A)ensure the examination is led by, to the maximum extent practicable, an examiner with significant experience as an examiner; (B)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; (C)make every effort, to the maximum extent practicable, to schedule the examination at a time that is convenient for the institution; and (D)to the maximum extent practicable, give the institution advance notice of issues expected to be covered in the examination. (13)ReportIn its annual report to Congress, each Federal banking agency shall include— (A)information on how the agency is complying with paragraphs (11) and (12); and (B)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— (i)the average experience of examiners, including the average number of years of examiner experience of those who lead on-site examinations; (ii)the average number of examiners utilized; and (iii)the average amount of time the agency spends visiting such institutions for on-site examinations.. (2)Insured credit unionsSection 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: (i)Examination practicesWith 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— (1)ensure the examination is led by, to the maximum extent practicable, an examiner with significant experience as an examiner; (2)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; (3)make every effort, to the maximum extent practicable, to schedule the examination at a time that is convenient for the credit union; and (4)to the maximum extent practicable, give the credit union advance notice of issues expected to be covered in the examination. (j)ReportIn its annual report to Congress, the National Credit Union Administration shall include— (1)information on how the Administration is complying with subsections (h) and (i); and (2)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— (A)the average experience of examiners, including the average number of years of examiner experience of those who lead on-site examinations; (B)the average number of examiners utilized; and (C)the average amount of time the Administration spends visiting such credit unions for on-site examinations..

304.Tailored Regulatory Updates for Supervisory TestingSection 10(d) of the Federal Deposit Insurance Act (12 U.S.C. 1820(d)) is amended— (1)in paragraph (4)(A), by striking $3,000,000,000 and inserting $6,000,000,000; and (2)in paragraph (10), by striking $3,000,000,000 and inserting $6,000,000,000.

305.Stress Testing Accountability and Transparency (a)Rulemaking related to stress capital buffer requirements (1)In generalNot later than 90 days after the date of the enactment of this section, the Board of Governors of the Federal Reserve System (in this section referred to as the Board) shall issue a rule— (A)establishing the models, assumptions, formulas, and other decisional methodologies that are used to conduct any stress test pursuant to section 165(i) of the Financial Stability Act of 2010 (12 U.S.C. 5365(i)), including any such test that is used to determine any component or subcomponent of the stress capital buffer requirement for a covered company; and (B)to determine, where the Board has supervisory stress test results from two or more periodic analyses of a covered company, the covered company’s stress capital buffer requirement on the basis of supervisory stress test results from two or more periodic analyses of that covered company. (2)ChangesThe Board may only make material changes to the methodologies established in the rule issued under paragraph (1)(A) through notice and comment rulemaking. (3)No double-countThe Board shall ensure no double-count of capital requirements for the same risks in the stress capital buffer requirement and the risk-based capital requirements. (4)DefinitionsIn this subsection: (A)Covered companyThe term covered company means a company to which section 225.8 of title 12, Code of Federal Regulations, or section 238.170 of title 12, Code of Federal Regulations, applies. (B)Stress capital buffer requirementThe term stress capital buffer requirement has the meaning given that term under— (i)section 225.8(d) of title 12, Code of Federal Regulations; and (ii)section 238.170(d) of title 12, Code of Federal Regulations. (5)Rule of constructionNothing in this subsection may be construed to imply that the Board is required to establish a stress capital buffer requirement for any bank holding company or any other company regulated by the Board. (b)Rulemaking relating to stress testing (1)In generalBeginning in the first calendar year beginning after the date of the enactment of this section, the Board shall, not less than 60 days before conducting a stress test pursuant to section 165(i) of the Financial Stability Act of 2010, publicly disclose each scenario to be used in such stress test. (2)ProhibitionThe Board may not, by rule or otherwise, subject any nonbank financial company or bank holding company to a climate-related stress test using the authority provided in section 165(i) of the Financial Stability Act of 2010. (c)GAO report (1)In generalThe Comptroller General of the United States shall, every 3 years, conduct a study and submit a report to the Congress with respect to the stress tests conducted by the Board under section 165(i) of the Financial Stability Act of 2010 in the 3 most recent calendar years. (2)ContentsThe report submitted to the Congress under paragraph (1) shall consider the effectiveness of the stress tests in evaluating— (A)the safety and soundness of the nonbank financial companies and bank holding companies subjected to stress tests; and (B)the stability of the United States financial system.

306.Community Bank Representation (a)Federal Reserve ActSection 10 of the Federal Reserve Act is amended— (1)in the first undesignated paragraph (12 U.S.C. 241), by striking having less than $10,000,000,000 in total assets; (2)in the second undesignated paragraph (12 U.S.C. 242), by inserting after regulation of such firms. the following: The Chairman shall select one member of the Board with demonstrated primary experience working in or supervising community banks to, in consultation with the Vice Chairman for Supervision and any other member of the Board with demonstrated primary experience working in or supervising community banks, develop policy recommendations for the Board regarding supervision and regulation of banking organizations supervised by the Board having less than $17,000,000,000 in total assets, and to oversee the supervision and regulation of such banking organizations in consultation with the Vice Chairman for Supervision and any other member of the Board with demonstrated primary experience working in or supervising community banks.; (3)in paragraph (12) (12 U.S.C. 247b)— (A)by striking The Vice Chairman for Supervision and inserting the following: (A)Vice Chairman for SupervisionThe Vice Chairman for Supervision; (B)by striking and at and inserting at; and (C)by adding at the end the following: (B)Community bank memberThe member of the Board with demonstrated primary experience working in or supervising community banks selected by the Chairman to develop policy recommendations for the Board regarding supervision and regulation of banking organizations supervised by the Board having less than $17,000,000,000 in total assets, and to oversee the supervision and regulation of such banking organizations, if different than the Vice Chairman for Supervision, shall appear before the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives at semi-annual hearings regarding the efforts, activities, objectives, and plans of the Board with respect to the conduct of supervision and regulation of banking organizations supervised by the Board having less than $17,000,000,000 in total assets.; and (4)by adding at the end the following: (13)Member of the Board for community banks annual threshold adjustment (A)In generalAt the end of each year for which the nominal gross domestic product of the United States increases (a covered year), the Board shall adjust each dollar figure described in the second undesignated paragraph of this section, paragraph (12)(B) of this section, and section 1004(a)(3) of the Federal Financial Institutions Examination Council Act of 1978 by a percentage equal to the percentage increase (if any) between— (i)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 (ii)the nominal gross domestic product of the United States for the covered year. (B)Determination of GDPIn this paragraph, the Board shall use nominal gross domestic product statistics determined by the Bureau of Economic Analysis.. (b)Federal Financial Institutions Examination Council Act of 1978Section 1004(a)(3) of the Federal Financial Institutions Examination Council Act of 1978 (12 U.S.C. 3303(a)(3)) is amended by adding at the end the following: and such Governor shall consult with the Governor with demonstrated primary experience working in or supervising community banks selected by the Chairman of the Board to develop policy recommendations for the Board regarding supervision and regulation of banking organizations supervised by the Board having less than $17,000,000,000 in total assets, and to oversee the supervision and regulation of such banking organizations,.

307.Financial Integrity and Regulation Management (a)FindingsCongress finds that— (1)the primary objective of financial regulation and supervision by the Federal banking agencies is to promote safety and soundness of depository institutions; (2)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; (3)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; (4)financial service providers should strive to ensure that all business decisions are based on factors free from unlawful prejudice or political influence; (5)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; (6)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 (7)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. (b)DefinitionsIn this section: (1)Depository institutionThe term depository institution— (A)has the meaning given the term in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813); (B)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 (C)includes an insured credit union, as such term is defined in section 101 of the Federal Credit Union Act (12 U.S.C. 1752). (2)Federal banking agencyThe term Federal banking agency— (A)has the meaning given the term in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813); and (B)includes— (i)the National Credit Union Administration; and (ii)the Bureau of Consumer Financial Protection. (3)Foreign terrorist organizationThe 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). (4)Reputational riskThe 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. (5)State sponsors of terrorismThe 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— (A)section 1754(c)(1)(A)(i) of the Export Control Reform Act of 2018 (50 U.S.C. 4813(c)(1)(A)(i)); (B)section 620A of the Foreign Assistance Act of 1961 (22 U.S.C. 2371); (C)section 40(d) of the Arms Export Control Act (22 U.S.C. 2780(d)); or (D)any other provision of law. (c)Removal of reputational risk as a consideration in the supervision of depository institutionsEach 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. (d)ProhibitionNo 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— (1)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; (2)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; (3)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; (4)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 (5)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. (e)ReportsNot 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— (1)confirms implementation of this section; and (2)describes any changes made to internal policies as a result of this section. IVRegulatory Accountability and Transparency

401.FDIC Board AccountabilitySection 2 of the Federal Deposit Insurance Act (12 U.S.C. 1812) is amended— (1)in subsection (a)— (A)in paragraph (1)— (i)in subparagraph (A), by adding and at the end; and (ii)by striking subparagraphs (B) and (C) and inserting the following: (B)4 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.; and (B)by adding at the end the following: (3)Non-voting status of the Director of the Bureau of Consumer Financial ProtectionThe Director of the Bureau of Consumer Financial Protection shall serve as a non-voting observer to the Board of Directors of the Corporation.; (2)in subsection (c)— (A)in paragraph (1), by adding at the end the following: No individual may be appointed as a member for more than two terms.; and (B)by adding at the end the following: (4)Maximum length of serviceNotwithstanding any other provision of this Act, no person shall serve as a member for more than twelve years in total.; (3)in subsection (d)(2)— (A)by striking Consumer Financial Protection Bureau each place such term appears and inserting Bureau of Consumer Financial Protection; and (B)by inserting or observer, as the case may be, after member; and (4)in subsection (f)(2), by striking or of the Consumer Financial Protection Bureau.

402.Stop Agency Fiat Enforcement of Guidance (a)In generalThe 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. (b)Guidance clarity statementA 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.. (c)DefinitionsIn this section: (1)Financial agencyThe term financial agency means the following: (A)The Bureau of Consumer Financial Protection. (B)The Department of Housing and Urban Development. (C)The Department of the Treasury. (D)The Federal Deposit Insurance Corporation. (E)The Federal Housing Finance Agency. (F)The Board of Governors of the Federal Reserve System. (G)The National Credit Union Administration. (H)The Office of the Comptroller of the Currency. (I)The Securities and Exchange Commission. (2)GuidanceThe 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)a rule promulgated pursuant to notice and comment under section 553 of title 5, United States Code; (B)a rule exempt from rulemaking requirements under section 553(a) of title 5, United States Code; (C)a rule of financial agency organization, procedure, or practice under section 553(b)(A) of title 5, United States Code; (D)a decision of a financial agency adjudication under section 554 of title 5, United States Code, or any similar statutory provision; (E)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 (F)internal executive branch legal advice or legal opinions addressed to executive branch officials.

403.Regulatory Efficiency, Verification, Itemization, and Enhanced Workflow Section 2222 of the Economic Growth and Regulatory Paperwork Reduction Act of 1996 (12 U.S.C. 3311) is amended— (1)by striking appropriate Federal banking agency each place such term appears and inserting Federal financial institutions regulatory agency; (2)by striking appropriate Federal banking agencies each place such term appears and inserting Federal financial institutions regulatory agencies; (3)in subsection (a)— (A)by striking represented on the Council; and (B)by striking once every 10 years and inserting once every 7 years; (4)in subsection (b)— (A)by redesignating paragraphs (1) and (2) as subparagraphs (A) and (B), respectively (and adjusting the margins accordingly); (B)by striking In conducting and inserting the following: (1)Solicitation of public commentIn conducting; and (C)by adding at the end the following: (2)Internal review of cumulative impactEach 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— (A)assesses the effects of such regulations on consumers’ access to financial products and services; (B)assesses the effects of such regulations on the availability of financial products and services to financial and nonfinancial firms; (C)assesses the impact of such regulations on credit availability and financial market liquidity in United States financial markets; (D)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; (E)to the extent practicable, quantifies the direct and indirect economic costs imposed by such regulations; and (F)includes recommendations to streamline, simplify, or eliminate duplicative, outdated, and unnecessarily burdensome regulations. ; (5)in subsection (c)— (A)by striking subsection (b)(2) and inserting subsection (b)(1)(B), and the internal review under subsection (b)(2),; and (B)by striking once every 10 years and inserting once every 7 years; (6)in subsection (e)— (A)in paragraph (1), by striking and at the end; (B)by redesignating paragraph (2) as paragraph (3); (C)by inserting after paragraph (1) the following: (2)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; and (D)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 (7)by adding at the end the following: (f)Federal financial institutions regulatory agency definedThe 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). .

404.American Financial Institution Regulatory Sovereignty and Transparency (a)Annual reporting on interactions between Federal banking supervisory agencies and global financial regulatory or supervisory forums (1)Board of Governors of the Federal Reserve SystemThe seventh undesignated paragraph of section 10 of the Federal Reserve Act (12 U.S.C. 247) is amended— (A)by striking The Board and inserting the following: (7)Annual report (A)In generalThe Board; (B)by striking the second sentence; and (C)by adding at the end the following: (B)Interactions with global financial regulatory or supervisory forumsThe report required under subparagraph (A) shall include a description of the Board’s interactions with global financial regulatory or supervisory forums, including— (i)a list of the global financial regulatory or supervisory forums in which the Board maintained membership during the period covered by the report; and (ii)for each such global financial regulatory or supervisory forum in the list provided pursuant to clause (i)— (I)a description of the general purposes of the global financial regulatory or supervisory forum, including a list of the current members and observers of the global financial regulatory or supervisory forum; (II)a discussion of how the general purposes of the global financial regulatory or supervisory forum align with the purposes of this Act and the other Acts that the Board implements; (III)an identification of the sources that provided a material amount of funding for the operations of the global financial regulatory or supervisory forum during the period covered by the report; (IV)a description of the organization the Board maintained during the period covered by the report to conduct interactions with the global financial regulatory or supervisory forum, including an organizational chart and an identification of the official staff of the Board with oversight responsibility for interactions with the global financial regulatory or supervisory forum; (V)a discussion of the financial regulatory or supervisory standard-setting issues under discussion at the global financial regulatory or supervisory forum during the period covered by the report; (VI)a description of the positions taken by representatives of the Board at the global financial regulatory or supervisory forum during the period covered by the report, including the rationale, objectives, and potential impacts of such positions; (VII)a summary of the meetings attended by representatives of the Board at the global financial regulatory or supervisory forum during the period covered by the report, including a discussion of the key outcomes from such meetings; (VIII)the text of any final policies, standards, or recommendations adopted by the global financial supervisory or regulatory forum during the period covered by the report, including any implementing material, annex, appendix, side letter, or similar document entered into contemporaneously or in conjunction with the underlying policy, standard, or recommendation, or an identification of a publicly available source for the text of such policy, standard, recommendation, or implementing material; (IX)a description of any amendments to Federal statutes, regulations of the Board, guidance of the Board, or changes to the Board’s supervisory practices the Board anticipates will be necessary to implement any final policies, standards, or recommendations adopted by the global financial supervisory or regulatory forum during the period covered by the report; (X)a discussion of rules proposed, rules under consideration, final rules adopted, guidance proposed, guidance under consideration, final guidance adopted, or any other similar actions taken by the Board during the period covered by the report to implement agreements of the global financial regulatory or supervisory forum, including an economic impact analysis and a justification for why the expected costs of implementing actions are at least offset by the expected benefits related to economic, national security, financial stability, or other national interests; and (XI)such other information relating to interactions with the global financial regulatory or supervisory forum during the period covered by the report separately requested in writing by the Committee on Banking, Housing, and Urban Affairs of the Senate or the Committee on Financial Services of the House of Representatives. (C)Global financial regulatory or supervisory forum defined (i)In generalIn 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— (I)the Bank for International Settlements; (II)the Basel Committee on Banking Supervision; (III)the Financial Stability Board; (IV)the International Association of Insurance Supervisors; and (V)the Network of Central Banks and Supervisors for Greening the Financial System. (ii)ExceptionThe term global financial regulatory or supervisory forum does not include— (I)international financial institutions, as defined in section 1701(c)(2) of the International Financial Institutions Act (22 U.S.C. 262r(c)(2)); or (II)any international organization with respect to which the Board participates pursuant to a treaty to which the United States is a party.. (2)Office of the Comptroller of the Currency (A)In generalThe 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:

333.Report of Comptroller (a)In generalThe Comptroller of the Currency shall make an annual report to Congress. (b)Interactions with global financial regulatory or supervisory forumsThe report required under subsection (a) shall include a description of the Comptroller’s interactions with global financial regulatory or supervisory forums, including— (1)a list of the global financial regulatory or supervisory forums in which the Comptroller maintained membership during the period covered by the report; and (2)for each such global financial regulatory or supervisory forum in the list provided pursuant to paragraph (1)— (A)a description of the general purposes of the global financial regulatory or supervisory forum, including a list of the current members and observers of the global financial regulatory or supervisory forum; (B)a discussion of how the general purposes of the global financial regulatory or supervisory forum align with the purposes of this chapter, title LXII, and the other Acts that the Comptroller implements; (C)an identification of the sources that provided a material amount of funding for the operations of the global financial regulatory or supervisory forum during the period covered by the report; (D)a description of the organization the Comptroller maintained during the period covered by the report to conduct interactions with the global financial regulatory or supervisory forum, including an organizational chart and an identification of the official staff of the Office of the Comptroller of the Currency with oversight responsibility for interactions with the global financial regulatory or supervisory forum; (E)a discussion of the financial regulatory or supervisory standard-setting issues under discussion at the global financial regulatory or supervisory forum during the period covered by the report; (F)a description of the positions taken by representatives of the Comptroller at the global financial regulatory or supervisory forum during the period covered by the report, including the rationale, objectives, and potential impacts of such positions; (G)a summary of the meetings attended by representatives of the Comptroller at the global financial regulatory or supervisory forum during the period covered by the report, including a discussion of the key outcomes from such meetings; (H)the text of any final policies, standards, or recommendations adopted by the global financial supervisory or regulatory forum during the period covered by the report, including any implementing material, annex, appendix, side letter, or similar document entered into contemporaneously or in conjunction with the underlying policy, standard, or recommendation, or an identification of a publicly available source for the text of such policy, standard, recommendation, or implementing material; (I)a description of any amendments to Federal statutes, regulations of the Comptroller, guidance of the Comptroller, or changes to the Comptroller’s supervisory practices the Comptroller anticipates will be necessary to implement any final policies, standards, or recommendations adopted by the global financial supervisory or regulatory forum during the period covered by the report; (J)a discussion of rules proposed, rules under consideration, final rules adopted, guidance proposed, guidance under consideration, final guidance adopted, or any other similar actions taken by the Comptroller during the period covered by the report to implement agreements of the global financial regulatory or supervisory forum, including an economic impact analysis and a justification for why the expected costs of implementing actions are at least offset by the expected benefits related to economic, national security, financial stability, or other national interests; and (K)such other information relating to interactions with the global financial regulatory or supervisory forum during the period covered by the report separately requested in writing by the Committee on Banking, Housing, and Urban Affairs of the Senate or the Committee on Financial Services of the House of Representatives. (c)Global financial regulatory or supervisory forum defined (1)In generalIn 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— (A)the Bank for International Settlements; (B)the Basel Committee on Banking Supervision; (C)the Financial Stability Board; (D)the International Association of Insurance Supervisors; and (E)the Network of Central Banks and Supervisors for Greening the Financial System. (2)ExceptionThe term global financial regulatory or supervisory forum does not include— (A)international financial institutions, as defined in section 1701(c)(2) of the International Financial Institutions Act (22 U.S.C. 262r(c)(2)); or (B)any international organization with respect to which the Comptroller participates pursuant to a treaty to which the United States is a party.. (B)Technical correctionChapter nine of title VII of the Revised Statutes of the United States is amended— (i)by redesignating the first section 333 (12 U.S.C. 14a; relating to data standards) as section 332; (ii)by moving such section so as to appear after section 331; and (iii)in the table of contents of such chapter, by amending the item relating to section 332 to read as follows: 332. Data standards; open data publication.. (3)Federal Deposit Insurance CorporationSection 17(a) of the Federal Deposit Insurance Act (12 U.S.C. 1827(a)) is amended by striking paragraph (3) and inserting the following: (3)Interactions with global financial regulatory or supervisory forumsThe report required under paragraph (1) shall include a description of the Corporation’s interactions with global financial regulatory or supervisory forums, including— (A)a list of the global financial regulatory or supervisory forums in which the Corporation maintained membership during the period covered by the report; and (B)for each such global financial regulatory or supervisory forum in the list provided pursuant to subparagraph (A)— (i)a description of the general purposes of the global financial regulatory or supervisory forum, including a list of the current members and observers of the global financial regulatory or supervisory forum; (ii)a discussion of how the general purposes of the global financial regulatory or supervisory forum align with the purposes of this Act and the other Acts that the Corporation implements; (iii)an identification of the sources that provided a material amount of funding for the operations of the global financial regulatory or supervisory forum during the period covered by the report; (iv)a description of the organization the Corporation maintained during the period covered by the report to conduct interactions with the global financial regulatory or supervisory forum, including an organizational chart and an identification of the official staff of the Corporation with oversight responsibility for interactions with the global financial regulatory or supervisory forum; (v)a discussion of the financial regulatory or supervisory standard-setting issues under discussion at the global financial regulatory or supervisory forum during the period covered by the report; (vi)a description of the positions taken by representatives of the Corporation at the global financial regulatory or supervisory forum during the period covered by the report, including the rationale, objectives, and potential impacts of such positions; (vii)a summary of the meetings attended by representatives of the Corporation at the global financial regulatory or supervisory forum during the period covered by the report, including a discussion of the key outcomes from such meetings; (viii)the text of any final policies, standards, or recommendations adopted by the global financial supervisory or regulatory forum during the period covered by the report, including any implementing material, annex, appendix, side letter, or similar document entered into contemporaneously or in conjunction with the underlying policy, standard, or recommendation, or an identification of a publicly available source for the text of such policy, standard, recommendation, or implementing material; (ix)a description of any amendments to Federal statutes, regulations of the Corporation, guidance of the Corporation, or changes to the Corporation’s supervisory practices the Corporation anticipates will be necessary to implement any final policies, standards, or recommendations adopted by the global financial supervisory or regulatory forum during the period covered by the report; (x)a discussion of rules proposed, rules under consideration, final rules adopted, guidance proposed, guidance under consideration, final guidance adopted, or any other similar actions taken by the Corporation during the period covered by the report to implement agreements of the global financial regulatory or supervisory forum, including an economic impact analysis and a justification for why the expected costs of implementing actions are at least offset by the expected benefits related to economic, national security, financial stability, or other national interests; and (xi)such other information relating to interactions with the global financial regulatory or supervisory forum during the period covered by the report separately requested in writing by the Committee on Banking, Housing, and Urban Affairs of the Senate or the Committee on Financial Services of the House of Representatives. (4)Global financial regulatory or supervisory forum defined (A)In generalIn 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— (i)the Bank for International Settlements; (ii)the Basel Committee on Banking Supervision; (iii)the Financial Stability Board; (iv)the International Association of Insurance Supervisors; and (v)the Network of Central Banks and Supervisors for Greening the Financial System. (B)ExceptionThe term global financial regulatory or supervisory forum does not include— (i)international financial institutions, as defined in section 1701(c)(2) of the International Financial Institutions Act (22 U.S.C. 262r(c)(2)); or (ii)any international organization with respect to which the Corporation participates pursuant to a treaty to which the United States is a party.. (b)Biannual congressional testimony on interactions with global financial regulatory or supervisory forumsParagraph (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)). VStrengthening Local Bank Funding

501.Bringing the Discount Window into the 21st CenturySection 10 of the Federal Reserve Act (12 U.S.C. 241 et seq.) is amended by inserting after paragraph (10) the following: (11)Review of discount window operations (A)In generalNot 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. (B)ContentsThe review required by subparagraph (A) shall include a consideration of— (i)the effectiveness of the discount window in providing liquidity to financial institutions, including in times of financial stress; (ii)whether the technology infrastructure, including means of communications, are sufficient to support the timely provision of liquidity, including in times of financial stress; (iii)the effectiveness of cybersecurity measures implemented with respect to discount window operations; (iv)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; (v)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; (vi)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; (vii)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; (viii)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— (I)help financial institutions better respond to rapid liquidity shortfalls; and (II)prevent broader financial instability; and (ix)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. (C)Remediation planAfter the Board of Governors completes the review required by subparagraph (A), the Board of Governors, in consultation with the Federal reserve banks, shall— (i)identify deficiencies with the discount window and areas for enhancing discount window effectiveness; and (ii)develop a written plan to remediate the identified deficiencies and implement the identified enhancements, which shall include— (I)an identification of actions that will be taken to enhance discount window effectiveness and remediate identified deficiencies; (II)timelines and milestones for implementing the plan and measures to demonstrate how the implemented improvements will be maintained on an ongoing basis; and (III)measures of managing and controlling any deficiencies and current operations until the plan is implemented in full. (D)Report to Congress on review and plan (i)In generalNot 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— (I)the findings of the review required by subparagraph (A); and (II)the remediation plan required by subparagraph (C). (ii)ConsultationBefore submitting the report required by clause (i), the Board of Governors shall— (I)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 (II)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. (iii)TestimonyThe 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. (E)Annual reports to Congress (i)Reports by the BoardThe 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). (ii)Reports by the Inspector GeneralThe 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). (F)Confidential report informationAny report required under this paragraph may contain a confidential annex containing information that, if made public, could— (i)impact monetary policy, financial stability, or cybersecurity; or (ii)significantly endanger the safety and soundness of any financial institution. (G)RepealThis 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..

502.Keeping Deposits Local (a) Amount of reciprocal deposits that are not considered To be funds obtained by or through a deposit broker 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: (1) In general 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: (A) 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. (B) 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. (C) 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. . (b)Definition of Agent InstitutionSection 29(i)(2)(A)(i) of the Federal Deposit Insurance Act (12 U.S.C. 1831f(i)(2)(A)(i)) is amended by striking subclause (I) and inserting the following: (I)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. (c)Reciprocal deposits study (1)In generalThe Federal Deposit Insurance Corporation, in consultation with the Board of Governors of the Federal Reserve System, shall carry out a study on reciprocal deposits. (2)ContentsThe study required under paragraph (1) shall include— (A)an analysis of how reciprocal deposits have performed since 2018, which shall include— (i)the use of quantitative and qualitative data; (ii)a breakdown of the usage of reciprocal deposits by size of insured depository institution; (iii)the usage of reciprocal deposits during periods of stress; and (iv)an analysis, to the extent practicable, of end-user depositors, such as municipalities, businesses, and non-profit organizations, that drive demand for reciprocal products; (B)an analysis, to the extent practicable, of how reciprocal deposits compare to other deposit arrangements; and (C)an analysis of the benefits and potential risks of reciprocal deposits. (3)ReportNot 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 report required under paragraph (1).

503.Community Bank Deposit Access (a)In generalSection 29 of the Federal Deposit Insurance Act (12 U.S.C. 1831f) is amended by adding at the end the following: (j)Limited exception for custodial deposits (1)In generalCustodial 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. (2)DefinitionsIn this subsection: (A)Custodial depositThe 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: (i)An insured depository institution serving as agent, trustee, or custodian. (ii)A trust entity controlled by an insured depository institution serving as agent, trustee, or custodian. (iii)A State-chartered trust company serving as agent, trustee, or custodian. (iv)A plan administrator or investment advisor, acting in a formal custodial or fiduciary capacity for the benefit of a plan. (B)Eligible institutionThe 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— (i) (I)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 (II)is well capitalized; or (ii)has obtained a waiver pursuant to subsection (c). (C)PlanThe 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). (D)Plan administratorThe 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). (E)Well capitalizedThe term well capitalized has the meaning given the term in section 38(b).. (b)Interest rate restrictionSection 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: (k)Restriction on interest rate paid on certain custodial deposits (1)DefinitionsIn this subsection— (A)the terms custodial deposit, eligible institution, and well capitalized have the meanings given those terms in subsection (j); and (B)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. (2)ProhibitionA 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). (3)Limit on interest ratesThe limit on the rate of interest referred to in paragraph (2) shall be not greater than— (A)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 (B)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.. VIPromoting Bank Competition and Merger Clarity

601.Bank Competition Modernization (a)In generalSection 18(c) of the Federal Deposit Insurance Act (12 U.S.C. 1828(c)), as amended by section 103(c), is further amended— (1)in paragraph (4)(C)— (A)in clause (i), by striking or at the end; (B)in clause (ii), by striking the period at the end and inserting ; or; and (C)by adding at the end the following: (iii)the proposed merger transaction would result in an entity with less than $10,000,000,000 in assets.; and (2)by adding at the end the following: (16)For merger transactions resulting in institutions with less than $10,000,000,000 in assets (A)In generalNotwithstanding 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— (i)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 (ii)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. (B)Threshold adjustment (i)In generalAt 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— (I)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 (II)the nominal gross domestic product of the United States for the covered year. (ii)Determination of GDPIn this paragraph, the Corporation shall use nominal gross domestic product statistics determined by the Bureau of Economic Analysis.. (b)For bank holding companiesSection 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: (8)For proposed transactions resulting in companies with less than $10,000,000,000 in assets (A)In generalNotwithstanding 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— (i)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 (ii)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. (B)Threshold adjustment (i)In generalAt 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— (I)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 (II)the nominal gross domestic product of the United States for the covered year. (ii)Determination of GDPIn this paragraph, the Board shall use nominal gross domestic product statistics determined by the Bureau of Economic Analysis.. (c)For savings and loan holding companiesSection 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: (10)For proposed transactions resulting in companies with less than $10,000,000,000 in assets (A)In generalNotwithstanding 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— (i)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 (ii)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. (B)Threshold adjustment (i)In generalAt 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— (I)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 (II)the nominal gross domestic product of the United States for the covered year. (ii)Determination of GDPIn this paragraph, the Board shall use nominal gross domestic product statistics determined by the Bureau of Economic Analysis..

602.Merger Agreement Approvals Clarity and Predictability (a)StudyThe 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— (1)include an evaluation of relevant quantifiable metrics; (2)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; (3)consider the benefits and risks of utilizing different merger review approaches and procedures in compliance with the law; and (4)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. (b)ReportNot later than 1 year after the date of enactment of this Act, the Comptroller General shall issue a report to Congress containing all findings and determinations made in carrying out the study required under subsection (a). (c)DefinitionsIn this section: (1)ApplicationThe term application means an application, notice, or other similar request for permission submitted to a Federal depository institution regulatory agency. (2)Federal depository institution regulatory agencyThe 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. (3)Insured depository institutionThe term insured depository institution— (A)has the meaning given that term in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813); and (B)means an insured credit union, as defined in section 101 of the Federal Credit Union Act (12 U.S.C. 1752). (4)Insured depository institution merger applicationThe 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— (A)section 10(e) of the Home Owners’ Loan Act (12 U.S.C. 1467a(e)); (B)section 205(b) of the Federal Credit Union Act (12 U.S.C. 1785(b)); (C)section 7(j) of the Federal Deposit Insurance Act (12 U.S.C. 1817(j)); (D)section 18(c)(2) of the Federal Deposit Insurance Act (12 U.S.C. 1828(c)(2)); (E)section 3 of the Bank Holding Company Act of 1956 (12 U.S.C. 1842); and (F)section 4 of the Bank Holding Company Act of 1956 (12 U.S.C. 1843).

603.Merger Process Review (a)ReviewNot 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— (1)include an evaluation of relevant quantifiable metrics, including mean and median application processing times; (2)identify sources of delay that may hinder the timely consummation of proposals that meet the relevant statutory factors; (3)consider the benefits and risks of utilizing different merger review approaches and procedures in compliance with the law; (4)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 (5)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. (b)ReportEach Inspector General described under subsection (a) shall, at the conclusion of each review required under subsection (a), issue a report to Congress containing all findings and determinations made in carrying out the review, and publish such report online. (c)Agency responseIn response to each report issued to Congress under subsection (a), the appropriate Federal depository institution regulatory agency shall submit to Congress and publish online a written response, including a plan to implement the recommendations in the report, to the extent such implementation is appropriate. (d)DefinitionsIn this section: (1)ApplicationThe term application means an application, notice, or other similar request for permission submitted to a Federal depository institution regulatory agency. (2)Federal depository institution regulatory agencyThe 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. (3)Insured depository institutionThe term insured depository institution— (A)has the meaning given that term in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813); and (B)means an insured credit union, as defined in section 101 of the Federal Credit Union Act (12 U.S.C. 1752). (4)Insured depository institution merger applicationThe 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— (A)section 10(e) of the Home Owners’ Loan Act (12 U.S.C. 1467a(e)); (B)section 205(b) of the Federal Credit Union Act (12 U.S.C. 1785(b)); (C)section 7(j) of the Federal Deposit Insurance Act (12 U.S.C. 1817(j)); (D)section 18(c)(2) of the Federal Deposit Insurance Act (12 U.S.C. 1828(c)(2)); (E)section 3 of the Bank Holding Company Act of 1956 (12 U.S.C. 1842); and (F)section 4 of the Bank Holding Company Act of 1956 (12 U.S.C. 1843). VIIStrengthening Transparency and Involvement in Bank Resolutions

701.Least Cost Exception (a)In generalSection 13(c)(4) of the Federal Deposit Insurance Act (12 U.S.C. 1823(c)(4)) is amended— (1)in subparagraph (A)(ii), by inserting except as provided in subparagraph (I), before the total amount; (2)in subparagraph (E)(i), by inserting and except as provided in subparagraph (I), after appropriate,; and (3)by adding at the end the following: (I)Least cost resolution exception (i)In generalWith 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— (I)the Corporation determines that the selected alternative complies with the requirements of clause (iii); and (II)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. (ii)Maximum cost to the Deposit Insurance FundNot 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). (iii)Requirements describedThe requirements for the selected alternative described in clause (i) are as follows: (I)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. (II)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). (III)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— (aa)made over a period to be determined by the Corporation, but which may not be less than 5 years; and (bb)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. (iv)Report to CongressNot 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. (v)Cost determinationsAll cost determinations required under this subparagraph shall be made in accordance with subparagraphs (B) and (C). (vi)DefinitionsIn this subparagraph: (I)Covered alternativeThe 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. (II)Global systemically important banking organizationThe 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. . (b)Rule of constructionSection 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).

702.Enhancing Bank Resolution Participation (a)StudyThe 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— (1)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; (2)the use by the Federal Deposit Insurance Corporation of the modified bidder qualification process; (3)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; (4)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; (5)with respect to such receiverships, the extent to which greater use of shelf charters and modified bidder qualification processes could have— (A)expanded the pool of participants in the acquisition of the assets or liabilities of such failed insured depository institutions; (B)resulted in greater competition and diversity in market outcomes; (C)protected the Deposit Insurance Fund; or (D)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; (6)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 (7)any benefits and risks of private equity ownership of banks through the use of shelf charters and modified bidder qualification processes. (b)ReportNot 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— (1)all findings and determinations made in carrying out the study required under subsection (a); and (2)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. (c)DefinitionsIn this section: (1)Insured depository institutionThe term insured depository institution has the meaning given the term in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813). (2)Modified bidder qualification processThe 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. (3)Shelf charterThe 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. VIIIFacilitating Innovation and Bank Partnerships

801.Merchant Banking ModernizationSection 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.

802.Bank-Fintech Partnership Enhancement (a) Study on bank-Fintech partnerships (1) Study 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— (A) 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 (B) 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. (2) Report 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 Congress containing all findings and determinations made in carrying out the study required under paragraph (1). (3) Banking organization defined 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). (b) Study on credit union-Fintech partnerships (1) Study The National Credit Union Administration shall carry out a study of— (A) 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 (B) 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. (2) Report Not later than 1 year after the date of enactment of this Act, the National Credit Union Administration shall issue a report to Congress containing all findings and determinations made in carrying out the study required under subsection (a).

91 HR 6955 : Main Street Capital Access Act U.S. House of Representatives 2026-07-22 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. IIB119th CONGRESS2d SessionH. R. 6955IN THE SENATE OF THE UNITED STATESJuly 22, 2026Received; read twice and referred to the Committee on Banking, Housing, and Urban AffairsAN ACTTo make improvements to the Federal banking laws, and for other purposes.1.Short title; table of contents(a)Short titleThis Act may be cited as the Main Street Capital Access Act or the Main Street Act.(b)Table of contentsThe table of contents for this Act is as follows:Sec. 1. Short title; table of contents.Title I—New Bank Formation and Local Community AccessSec. 101. Promoting New Bank Formation.Sec. 102. New Bank Application Numbers Knowledge.Sec. 103. CDFI Fund Transparency.Sec. 104. CDFI Bond Guarantee Improvement.Title II—Tailoring Bank RegulationSec. 201. Taking Account of Institutions with Low Operation Risk.Sec. 202. Small Bank Holding Company Relief.Sec. 203. Tailoring and Indexing Enhanced Regulations.Sec. 204. Community Bank Regulatory Tailoring.Title III—Fair and Transparent Bank SupervisionSec. 301. Halting Uncertain Methods and Practices in Supervision.Sec. 302. Fair Audits and Inspections for Regulators’ Exams.Sec. 303. Supervisory Modifications for Appropriate Risk-based Testing.Sec. 304. Financial Integrity and Regulation Management.Title IV—Regulatory Accountability and TransparencySec. 401. FDIC Board Accountability.Sec. 402. Stop Agency Fiat Enforcement of Guidance.Sec. 403. Regulatory Efficiency, Verification, Itemization, and Enhanced Workflow.Title V—Strengthening Local Bank FundingSec. 501. Bringing the Discount Window into the 21st Century.Sec. 502. Keeping Deposits Local.Title VI—Promoting Bank Competition and Merger ClaritySec. 601. Bank Competition Modernization.Sec. 602. Merger Agreement Approvals Clarity and Predictability.Sec. 603. Merger Process Review.Sec. 604. Bank Failure Prevention.Title VII—Strengthening Transparency and Involvement in Bank ResolutionsSec. 701. Least Cost Exception.Sec. 702. Enhancing Bank Resolution Participation.Sec. 703. Failing Bank Acquisition Fairness.Title VIII—Facilitating Innovation and Bank PartnershipsSec. 801. Merchant Banking Modernization.Sec. 802. Bank-Fintech Partnership Enhancement.Sec. 803. Discretionary surplus fund.INew Bank Formation and Local Community Access101.Promoting New Bank FormationSection 908 of the 21st Century ROAD to Housing Act is amended—(1)in subsection (b)(2), by striking 180-day and inserting 90-day;(2)in subsection (c)—(A)in the heading, by inserting and extension after study;(B)by redesignating paragraph (2) as paragraph (3); and(C)by inserting after paragraph (1) the following:(2)Safety and soundness determination; extension of pilot program(A)DeterminationNot earlier than January 1, 2031, and not later than June 30, 2031, the Federal banking agencies may, jointly, determine that subsections (a) and (b) have had a significant adverse effect on the safety and soundness of qualifying community banks.(B)ExtensionUnless the Federal banking agencies make the determination described in subparagraph (A), the authorities under subsections (a) and (b) shall be permanent.(C)TerminationIf the Federal banking agencies make the determination described in subparagraph (A)—(i)subsections (a) and (b) shall only apply to a qualifying community bank that became an insured depository institution before the date of such determination; and(ii)the Federal banking agencies 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, and make such report available to the public, containing such determination and the reasons for such determination.; and(3)in subsection (e)(6)(B), by striking between January 1, 2026, and December 31, 2028 and inserting on or after January 1, 2026.

102.New Bank Application Numbers Knowledge(a)Annual report on national bank and Federal savings association charter applicationsThe 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:(1)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.(2)The mean and median times for preliminary approval of such applications.(3)The mean and median times for final approval of such applications.(4)To the extent practicable, common reasons leading to the denial, withdrawal, or expiration of preliminary approval of such applications.(b)Annual report on Federal credit union charter applicationsThe National Credit Union Administration shall publish an annual report that includes the following, or with respect to any equivalent procedure used by the agency includes the following:(1)The number of Federal credit union charter applications received, approved on a final basis, denied, withdrawn, inactive, or returned pending resubmission.(2)The mean and median times for final approval of such applications.(3)To the extent practicable, common reasons leading to application denial, withdrawal, inactivity, or to applications being returned for resubmission.(c)Annual report on depository institution holding company applications(1)In generalThe 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:(A)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.(B)The mean and median times to approve such applications.(C)To the extent practicable, common reasons leading to denial or withdrawal of such applications.(2)Top-tier depository institution holding company definedIn 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.(d)Annual report on Federal deposit insurance applicationsThe 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:(1)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.(2)The mean and median times to approve such applications.(3)To the extent practicable, common reasons leading to denial or withdrawal of such applications.(e)Annual report on State depository institution and State credit union charter applications(1)In generalThe 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:(A)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.(B)The mean and median times to approve such applications, with times for each State shown separately.(C)To the extent practicable, common reasons leading to denial or withdrawal of such applications.(2)DefinitionsIn this subsection:(A)StateThe term State means any State of the United States, the District of Columbia, and any territory of the United States.(B)State depository institutionThe term State depository institution means—(i)a State depository institution, as defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813); and(ii)a State credit union, as defined in section 101 of the Federal Credit Union Act (12 U.S.C. 1752).103.CDFI Fund TransparencySection 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:(5)Annual testimonyThe 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—(A)the operations of the Fund during the previous year;(B)steps the Secretary and the Fund are taking to support community development financial institutions through the financial agent mentor-protégé program; and(C)steps the Secretary and the Fund are taking to coordinate with regulators to ensure certification and reporting requirements are appropriately streamlined for community development financial institutions. .104.CDFI Bond Guarantee Improvement(a)Sense of CongressIt 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.(b)Guarantees for bonds and notes issued for community or economic development purposes(1)In generalSection 114A of the Community Development Banking and Financial Institutions Act of 1994 (12 U.S.C. 4713a) is amended—(A)in subsection (c)(2)—(i)by striking , multiplied by an amount equal to the outstanding principal balance of issued notes or bonds; and(ii)by inserting outstanding before principal amount;(B)by amending subsection (e)(2) to read as follows:(2)Limitation on guarantee amountThe 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.;(C)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(D)in subsection (k), by striking September 30, 2014 and inserting December 31, 2028.(2)Clerical amendmentThe 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:Sec. 114A. Guarantees for bonds and notes issued for community or economic development purposes..(c)Report on the CDFI Bond Guarantee ProgramNot 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).IITailoring Bank Regulation201.Taking Account of Institutions with Low Operation Risk(a)Tailoring regulation to business model and risk(1)DefinitionsIn this subsection—(A)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(B)the term regulatory action—(i)means any proposed, interim, or final rule or regulation; and(ii)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.(2)Consideration and tailoringFor any regulatory action occurring after the date of enactment of this Act, each Federal financial institutions regulatory agency shall—(A)take into consideration the risk profile and business models of each type of institution or class of institutions subject to the regulatory action; and(B)tailor the regulatory action applicable to a class 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.(3)Factors to considerIn carrying out the requirements of paragraph (2) with respect to a regulatory action, each Federal financial institutions regulatory agency shall consider—(A)the aggregate effect of all applicable regulatory actions promulgated by such agency 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;(B)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(C)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.(4)Notice of proposed and final rulemakingEach 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).(5)Reports to Congress(A)Agency reportingNot 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.(B)GAO reportingNot 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). (b)Short-form call reports for all banks eligible for the community bank leverage ratioThe appropriate Federal banking agencies, as defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813), shall establish 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)).(c)Report to Congress on modernization of supervisionNot 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:(1)Changing bank business models.(2)Examiner workforce and training.(3)The structure of supervisory activities within banking agencies.(4)Improving bank-supervisor communication and collaboration.(5)The use of supervisory technology.(6)Supervisory factors uniquely applicable to community banks.(7)Changes in statutes necessary to achieve more effective supervision.202.Small Bank Holding Company ReliefNot 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.203.Tailoring and Indexing Enhanced Regulations(a)Periodic adjustments to thresholdsThe Financial Stability Act of 2010 (12 U.S.C. 5311 et seq.) is amended by adding at the end the following:177.Periodic adjustments to thresholds(a)In general(1)AdjustmentNot later than 1 year after the date of enactment of this section, and every 5 years thereafter, the Board of Governors shall increase each threshold described in subsection (b) by the ratio, if greater than 1, of the annual value of the economic indicator selected by the Board of Governors as appropriate for that threshold under paragraph (2)(B) for the calendar year preceding the year in which the adjustment is calculated under this section, to the published annual value of such economic indicator for the calendar year preceding April 1, 2026.(2)Selection of economic indicatorsNot later than 3 months after the date of enactment of this section, the Board of Governors shall—(A)complete a study on the advantages and disadvantages of the use of either nominal United States gross domestic product (as published by the Department of Commerce) or the Consumer Price Index (as published by the Department of Labor) to adjust periodically the quantitative regulatory thresholds described in subsection (b);(B)for each threshold described in subsection (b), select either nominal United States gross domestic product (as published by the Department of Commerce) or the Consumer Price Index (as published by the Department of Labor) as appropriate for adjusting such threshold;(C)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—(i)all findings and determinations made in carrying out the study required under subparagraph (A); and(ii)all selections made under subparagraph (B).(b)Covered thresholdsThe thresholds described in this subsection are the following:(1)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.(2)Each bank holding company total consolidated asset amount in—(A)sections 116(a), 121(a), 163(b), 164, 165(a)(1), 165(h)(2), 165(j)(1) of this Act; and(B)section 401(f) of the Economic Growth, Regulatory Relief, and Consumer Protection Act.(3)Each financial company total consolidated asset amount in section 165(i)(2)(A) of this Act.(c)Currency of informationThe 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 or Department of Labor, as appropriate.(d)Rounding(1)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.(2)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.(e)PublicationNot 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.(f)Implementation periodAny 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).178.Periodic adjustments to thresholds established by rule(a)Agency reviewNot 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—(1)any regulation—(A)implementing section 165 of this Act; or(B)making specific cross-reference to any regulation of the Board of Governors implementing section 165 of this Act; and(2)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.(b)Modifications requiredThe 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 the economic indicator selected by the agency as appropriate for that threshold under paragraph (1) for the calendar year preceding the year in which the adjustment is calculated under this section, to the published annual value of such economic indicator 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—(1)not later than 3 months after the date of enactment of this subsection, for each threshold identified by each review conducted under subsection (a), select either nominal United States gross domestic product (as published by the Department of Commerce) or the Consumer Price Index (as published by the Department of Labor) as appropriate for adjusting such threshold, and use the values of such selected economic indicator most recently published as of the date of commencement of the review to compute the ratio described in this subsection;(2)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(3)seek to adjust such thresholds, to the extent feasible, with rounding consistent with section 177(d) of this Act.(c)ReportUpon 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)..(b)Clerical amendmentThe 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:Sec. 177. Periodic adjustments to thresholds.Sec. 178. Periodic adjustments to thresholds established by rule..204.Community Bank Regulatory Tailoring(a)Periodic adjustments to thresholds(1)In general(A)AdjustmentBy 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 (b) shall be increased by the ratio, if greater than 1, of the annual value of the economic indicator selected by the Board of Governors of the Federal Reserve System as appropriate for that dollar amount under subparagraph (B) for the calendar year preceding the year in which the adjustment is calculated under this section, to the published annual value of such economic indicator for the calendar year preceding April 1, 2026.(B)Selection of economic indicatorsNot later than 3 months after the date of enactment of this Act, the Board of Governors of the Federal Reserve System shall—(i)complete a study on the advantages and disadvantages of the use of either nominal United States gross domestic product (as published by the Department of Commerce) or the Consumer Price Index (as published by the Department of Labor) to adjust periodically the dollar amounts described in subsection (b);(ii)for each dollar amount described in subsection (b), select either nominal United States gross domestic product (as published by the Department of Commerce) or the Consumer Price Index (as published by the Department of Labor) as appropriate for adjusting such dollar amount;(iii)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—(I)all findings and determinations made in carrying out the study required under clause (i); and(II)all selections made under clause (ii).(2)Currency of informationThe 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 or Department of Labor, as appropriate.(3)Rounding(A)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.(B)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.(C)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.(D)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.(E)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.(F)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.(G)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.(H)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.(I)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.(J)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.(K)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.(L)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.(4)PublicationNot 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.(5)Implementation periodThe 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).(b)Dollar amountsThe dollar amounts described in this subsection are the dollar amounts described in each of the following:(1)Section 5(c)(3)(C)(ii) of the Bank Holding Company Act of 1956 (12 U.S.C. 1844(c)(3)(C)(ii)).(2)Section 809(a) of the Community Reinvestment Act of 1977 (12 U.S.C. 2908(a)).(3)Sections 202(4), 203(1), and 204 of the Depository Institution Management Interlocks Act (12 U.S.C. 3201 et seq.).(4)Sections 210(o), 210(r)(1)(A)(i), and section 956(f) Dodd-Frank Wall Street Reform and Consumer Protection Act (12 U.S.C. 5301 et seq.).(5)Sections 202(a)(6), 202(b)(1)(A), 202(c)(1)(A)(iii), 216(b)(2)(B)(iii)(II), 216(f)(2), 216(i)(4)(B), 216(j)(2)(A), and 216(o)(4) of the Federal Credit Union Act (12 U.S.C. 1751 et seq.).(6)Sections 7(a)(12), 11(p)(1)(A)(i), 36(i)(1)(B), 36(j), 38(b)(2)(A)(ii), and 38(k)(2)(B)(iii) of the Federal Deposit Insurance Act (12 U.S.C. 1811 et seq.).(7)Section 2(10) of the Federal Home Loan Bank Act (12 U.S.C. 1422(10)).(8)Sections 7(a)(1) and 22(h)(5)(C) of the Federal Reserve Act (12 U.S.C. 221 et seq.).(9)The second paragraph (3) of section 304(i) (relating to Exemption from certain disclosure requirements) and section 309(a) of the Home Mortgage Disclosure Act of 1975 (12 U.S.C. 2801 et seq.).(10)Section 5(u)(2)(A) of the Home Owners’ Loan Act (12 U.S.C. 1464(u)(2)(A)).(11)Section 909(a)(1) of the International Lending Supervision Act of 1983 (12 U.S.C. 3908(a)(1)).(12)Section 3(1)(B)(iv) of the Real Estate Settlement Procedures Act of 1974 (12 U.S.C. 2602(1)(B)(iv)).(13)Section 5136A(a)(2)(D)(ii) of the Revised Statutes of the United States (12 U.S.C. 24a(a)(2)(D)(ii)).(14)Section 129C(b)(2)(F)(i) of the Truth in Lending Act (15 U.S.C. 1639c(b)(2)(F)(i)).IIIFair and Transparent Bank Supervision301.Halting Uncertain Methods and Practices in Supervision(a)FindingsCongress finds that—(1)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;(2)the CAMELS rating system relies heavily on examiner judgment, which can lead to subjective and inconsistent ratings across similar institutions;(3)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(4)examination and supervision, as well as the CAMELS rating system, should focus on a financial institution’s material financial condition or solvency.(b)Amendments to the CAMELS Rating System(1)In generalThe Federal Financial Institutions Examination Council Act of 1978 (12 U.S.C. 3301 et seq.) is amended by adding at the end the following:1012.Amendments to the CAMELS Rating System(a)In generalThe Council shall make recommendations to amend the Uniform Financial Institutions Rating System, and the CAMELS components thereunder, to—(1)establish articulable, clear, and reviewable criteria for assessing each CAMELS component;(2)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;(3)revise the management component of the CAMELS components to limit the assessment under such component to articulable, clear, and reviewable measures of an institution’s management in relation to its risk profile;(4)ensure that composite ratings consider the financial institution’s compliance with—(A)section 21 of the Federal Deposit Insurance Act (12 U.S.C. 1829b);(B)chapter 2 of title I of Public Law 91–508 (12 U.S.C. 1951 et seq.);(C)subchapter II of chapter 53 of title 31, United States Code; and(D)any other applicable requirements and implementing regulations relating to the prevention of money laundering and terrorist financing; and(5)ensure that composite ratings are determined based on a transparent methodology that is limited to the objective criteria established for each CAMELS component.(b)RulemakingNot 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).(c)Public comment periodIn issuing the rules required under subsection (b), the Federal financial institutions regulatory agencies shall—(1)publish a notice of proposed rulemaking with respect to such rules; and(2)provide for a public comment period of not less than 90 days.(d)Rule of constructionNothing 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..(2)Well managed definition(A)Bank Holding Company Act of 1956Section 2(o)(9)(A) of the Bank Holding Company Act of 1956 (12 U.S.C. 1841(o)(9)(A)) is amended—(i)by striking achievement of and all that follows through a CAMEL and inserting achievement of a CAMEL;(ii)by striking ; and and inserting ; or; and(iii)by striking clause (ii).(B)Revised Statutes of the United StatesSection 5136A(g)(6)(A) of the Revised Statutes of the United States (12 U.S.C. 24a(g)(6)(A)) is amended—(i)by striking agency— and all that follows through the achievement and inserting agency, the achievement;(ii)by striking ; and and inserting ; or; and(iii)by striking clause (ii).302.Fair Audits and Inspections for Regulators’ Exams(a)Timeliness of examinations and examination reportsThe 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:1013.Timeliness of examinations and examination reports(a)Timeliness of examinationsA 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.(b)Final examination reportA 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—(1)the exit interview for an examination of the institution; or(2)the provision of additional material information by the institution relating to the examination.(c)Exit interview requirementWithin 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.(d)Examination materialsUpon 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..(b)Timeliness of required prudential private letter rulingsThe 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:1014.Timeliness of required prudential private letter rulings(a)Authority and regulation(1)In generalEach 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—(A)the agency’s non-objection to the financial institution conducting a particular activity;(B)the agency’s interpretation of a law or regulation as applied to a particular matter;(C)the agency’s interpretation of how generally accepted accounting principles or accounting objectives, standards, and requirements apply to a particular matter; or(D)the agency’s application of any supervisory guidance, statement of policy, or interpretive rule to a particular matter.(2)Covered action definedIn this subsection and with respect to a covered financial institution, the term covered action means—(A)any action in connection with a regulated activity that the covered financial institution is taking or is intending to take, including—(i)entering into a transaction;(ii)issuing a product or service; or(iii)changing the corporate structure of the covered financial institution; and(B)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)).(b)Contents of requestThe procedures established under subsection (a) shall provide that a request for written advice made under the procedures shall be in writing and contain—(1)the nature of the request;(2)applicable facts relating to the matter;(3)applicable law, regulations, or generally accepted accounting principles relating to the matter; and(4)a summary of the request.(c)Response to requestA Federal financial institutions regulatory agency receiving a request for written advice under subsection (a) shall, not later than 30 days after receiving the request—(1)provide the financial institution making the request with written notification confirming receipt of the request and stating whether the request contains all of the information required under subsection (b); and(2)if the request does not contain all of the information required under subsection (b)—(A)provide the financial institution with an explanation of what information is missing; and(B)notify the financial institution that the financial institution may provide the missing information to the agency within 30 days.(d)Providing missing informationIf 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 within 30 days of the date the financial institution receives the explanation of the missing information under subsection (c).(e)DeterminationA 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)—(1)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);(2)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(3)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.(f)Limited binding effectWritten advice issued by a Federal financial institutions regulatory agency under the procedures established under this section—(1)shall be binding on the agency with respect to the financial institution requesting the written advice and the specific facts described in the request;(2)may be relied upon by the financial institution requesting the written advice in good faith; and(3)shall not be binding on the agency with respect to any other person or institution and shall not be treated as precedent.(g)Confidentiality and privilege(1)Treatment of written adviceWritten 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.(2)Publishing of anonymized or redacted summariesA Federal financial institutions regulatory agency may publish anonymized or redacted summaries of rulings for informational purposes.(h)Modification or revocationA Federal financial institutions regulatory agency may modify or revoke written advice issued under this section only if—(1)the requesting financial institution made a material misstatement or omission of fact;(2)there has been a change in controlling law; or(3)the ruling is inconsistent with a final rule or judicial decision issued after the date the written advice was issued.(i)Reasonable feesEach 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—(1)shall be based on the estimated cost to the agency of reviewing, analyzing, and responding to the request;(2)may vary based on the complexity of the request or the size of the requesting institution; and(3)shall be prescribed by regulation.(j)FinalityWritten advice issued under the procedures established under this section shall not be construed as a final agency action..(c)Office of Independent Examination Review(1)In generalThe 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:1015.Office of Independent Examination Review(a)EstablishmentThere is established in the Council an Office of Independent Examination Review (the Office).(b)Board of Independent Examination Review(1)In generalThe 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.(2)QualificationsThe President shall appoint 1 member of the Board from each of the following classes of individuals:(A)Individuals who have been employed by a Federal financial institutions regulatory agency.(B)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—(i)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;(ii)have academic or private sector experience relating to financial services; or(iii)have relevant work-related experience in consumer affairs or compliance with consumer protection laws with respect to financial institutions.(C)Individuals with at least 10 years private sector financial services senior management-level experience.(3)Prohibition on certain individuals serving as a Board memberThe President may not appoint an individual as a member of the Board if the individual—(A)is, or was during the previous 2-year period, employed by a Federal financial institutions regulatory agency or a Federal reserve bank; or(B)is, or was during the previous 2-year period, employed by a financial institution.(4)ConsultationIn appointing members of the Board, the President shall consult with the Federal financial institutions regulatory agencies and financial institutions.(5)Term(A)In generalEach 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.(B)Term limitationNo individual may serve more than 2 full terms on the Board.(6)Political affiliationNot more than 2 members of the Board shall be members of the same political party.(7)Quorum(A)In general3 members of the Board shall constitute a quorum.(B)Initial quorumDuring 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.(8)Rate of payThe 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. (c)StaffingThe 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.(d)DutiesThe Board shall—(1)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;(2)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;(3)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;(4)conduct a continuing and regular program of examination quality assurance on a sample for all examination types conducted by the Federal financial institutions regulatory agencies;(5)carry out an independent review of any supervisory appeal initiated under section 1016; and(6)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.(e)Confidentiality(1)In generalThe Board and the Council shall keep confidential—(A)all meetings, discussions, and information provided by financial institutions and Federal financial institutions regulatory agencies that involve confidential supervisory information or privileged information;(B)all information and communications exchanged between a financial institution and the Office of Independent Examination Review; and(C)all information and communications exchanged between a Federal financial institutions regulatory agency and the Office of Independent Examination Review.(2)Submission of information does not constitute a waiverSection 18(x) of the Federal Deposit Insurance Act (12 U.S.C. 1828(x)) and section 205(j) of the Federal Credit Union Act (12 U.S.C. 1785(j)) 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 sections 18(x) and 205(j) apply to the submission of information described in such sections 18(x) and 205(j).(3)Sharing of information without waiving privilegeThe 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))..(2)DefinitionsSection 1003 of the Federal Financial Institutions Examination Council Act of 1978 (12 U.S.C. 3302) is amended—(A)in paragraph (2), by striking and at the end; and(B)by adding at the end the following:(4)the term Board means the Board of Independent Examination Review established under section 1015(b);(5)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;(6)the term insured depository institution has the meaning given that term in section 3 of the Federal Deposit Insurance Act; and(7)the term insured credit union has the meaning given that term in section 101 of the Federal Credit Union Act..(d)Right to independent review of material supervisory determinationsThe 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:1016.Right to independent review of material supervisory determinations(a)In generalA 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 Federal financial institutions regulatory agency and the Board may not conduct concurrent reviews.(b)Notice(1)TimingA 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.(2)ExtensionThe 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.(3)Identification of determinationThe written notice shall—(A)identify the material supervisory determination that is the subject of the requested independent examination review;(B)state the reasons why the institution believes that the material supervisory determination is incorrect or should otherwise be modified; and(C)include—(i)a clear and complete statement of all relevant facts and issues;(ii)all arguments that the institution wishes to present; and(iii)all relevant and material documents in the possession of the institution that the institution wishes to be considered.(4)Information made available to institutionA financial 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 financial institution with all examination and factual information relied upon by the Federal financial institutions regulatory agency in making the material supervisory determination. The Federal financial institutions regulatory agency shall provide such information to the financial institution not later than 14 days after receiving the request.(5)Submission of recordAfter 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.(c)Determination; right to hearing(1)In generalThe Board shall—(A)determine the merits on the record, including whether the material supervisory determination being reviewed should be upheld, canceled, or modified; or(B)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, except that such 60-day period may be extended if both the financial institution and the Board agree to such extension.(2)Right to obtain testimonyA 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.(3)Basis of decisionThe Board shall issue a written decision based upon the record of the examination, supplemented by the record established before the Board and at any hearing.(4)Standard of reviewThe 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 the examiners or the Federal financial institutions regulatory agency, but shall independently determine the appropriateness of the material supervisory determination based upon the relevant statutes, regulations, other appropriate guidance, and the evidentiary record.(5)Policy mattersThe 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.(d)Final decisionA decision by the Board on an independent review under this section shall—(1)be made not later than 60 days after the record has been closed; and(2)be deemed final and shall bind the agency whose supervisory determination was the subject of the review and the financial institution requesting the review.(e)Referral of violationsIf 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.(f)Annual report(1)In generalThe 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.(2)ConfidentialityIn 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.(g)Retaliation prohibited(1)In generalA Federal financial institutions regulatory agency may not—(A)retaliate against a financial institution, including service providers, or any institution-affiliated party, for exercising appellate rights under this section; or(B)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.(2)RetaliationFor 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.(h)RulemakingThe Board shall issue rules, consistent with subchapter II of chapter 5 of title 5, United States Code (commonly referred to as the Administrative Procedure Act), to establish procedures for hearings described under this section, including that—(1)a financial institution may appear at the hearing personally or through counsel;(2)a financial institution may provide an oral and written presentation at the hearing;(3)the Board may ask questions of any person participating in the hearing;(4)the hearing shall not be governed by the Federal Rules of Evidence; and(5)the Board shall have a verbatim transcript of the hearing prepared.(i)Rule of constructionNothing in this section may be construed—(1)to affect the right of a Federal financial institutions regulatory agency to take enforcement or other supervisory actions related to a material supervisory determination under review under this section; or(2)to prohibit the review under this section of a material supervisory determination with respect to which there is an ongoing enforcement or other supervisory action. .(e)Additional amendments(1)Regulatory appeals process, ombudsman, and alternative dispute resolution(A)In generalSection 309 of the Riegle Community Development and Regulatory Improvement Act of 1994 (12 U.S.C. 4806) is amended—(i)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);(ii)by striking subsections (a), (b), and (c);(iii)by redesignating subsections (d), (e), (f), and (g) as subsections (a), (b), (c), and (d), respectively;(iv)in subsection (b), as so redesignated—(I)in paragraph (2)—(aa)in subparagraph (B), by striking and at the end;(bb)in subparagraph (C), by striking the period and inserting ; and; and(cc)by adding at the end the following:(D)ensure that appropriate safeguards exist for protecting any party from retaliation by any agency for exercising rights under this subsection.; and(II)by adding at the end the following:(6)RetaliationFor 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.; and(v)in paragraph (1)(A) of subsection (c), as so redesignated—(I)in clause (ii), by striking ; and and inserting a semicolon;(II)in clause (iii), by striking ; and and inserting a semicolon; and(III)by adding at the end the following:(iv)any issue specifically listed in an exam report as a matter requiring attention by the institution’s management or board of directors; and(v)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.(B)EffectNothing in this subsection affects the authority of a Federal banking agency (as defined in section 304(b)) to take enforcement or other supervisory action.(2)Federal Credit Union ActSection 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.(3)Federal Financial Institutions Examination Council ActThe Federal Financial Institutions Examination Council Act of 1978 (12 U.S.C. 3301 et seq.) is amended—(A)in section 1003 (12 U.S.C. 3302)—(i)by striking paragraph (1) and inserting the following:(1)the term Federal financial institutions regulatory agencies—(A)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(B)includes the Bureau of Consumer Financial Protection for purposes of sections 1012 through 1015;; and(ii)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;;(B)in section 1004(a)(4) (12 U.S.C. 3303), by striking Consumer Financial Protection Bureau and inserting Bureau of Consumer Financial Protection; and(C)in section 1005 (12 U.S.C. 3304)—(i)by striking One-fifth and inserting One-fourth; and(ii)by inserting described under section 1003(1)(A) after agencies.(f)Election of forum for review of supervisory enforcement(1)Federal Deposit Insurance ActSection 8 of the Federal Deposit Insurance Act (12 U.S.C. 1818) is amended—(A)in subsection (b), by adding at the end the following:(11)HearingWith 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—(A)the appropriate Federal banking agency; or(B)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.;(B)in subsection (e), by adding at the end the following:(8)HearingWith 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—(A)the appropriate Federal banking agency; or(B)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.;(C)in subsection (h)—(i)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(ii)by adding at the end the following:(4)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.(5)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.;(D)in subsection (i)(2)—(i)by amending subparagraph (E)(ii) to read as follows:(ii)Finality of assessmentIf, 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.;(ii)by amending subparagraph (H) to read as follows:(H)HearingThe insured depository institution or institution-affiliated party against whom any penalty is assessed under this paragraph shall be afforded a hearing before—(i)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(ii)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.; and(iii)by amending subparagraph (I)(ii) to read as follows:(ii)Appropriateness of penalty not reviewableIn 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.; and(E)by adding at the end the following:(x)Savings clauseNothing in subsection (b)(11)(B), (e)(8)(B), or (i)(2)(H)(ii) shall be construed to—(1)limit the authority of a Federal banking agency to initiate an administrative enforcement action; or(2)impair the validity of any consent order..(2)Federal Credit Union ActSection 206 of the Federal Credit Union Act (12 U.S.C. 1786) is amended—(A)in subsection (e), by adding at the end the following:(5)HearingWith respect to any notice properly issued and served upon an insured credit union, credit union which has insured accounts, or an institution-affiliated party under this subsection, such insured credit union, credit union which has insured accounts, or institution-affiliated party shall be afforded a hearing before—(A)the Administration; or(B)if such insured credit union, credit union which has insured accounts, or institution-affiliated party 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.;(B)in subsection (g), by adding at the end the following:(8)HearingWith 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—(A)the Administration; or(B)if such institution-affiliated party 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.;(C)in subsection (j)—(i)in paragraph (1), by striking (other than the hearing provided for in subsection (i)(3) of this section) and inserting (other than the hearing provided for in subsection (e)(5)(B), (g)(8)(B), (i)(3), or (k)(2)(H)(ii)); and(ii)by adding at the end the following:(4)Any hearing provided for in subsection (e)(5)(B), (g)(8)(B), (i)(3), or (k)(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.(5)Any final decision of a United States district court made pursuant to a respondent’s election under subsection (e)(5)(B), (g)(8)(B), (i)(3), or (k)(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.;(D)in subsection (k)(2)—(i)by amending subparagraph (E)(ii) to read as follows:(ii)Finality of assessmentIf, 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.;(ii)by amending subparagraph (H) to read as follows:(H)HearingThe insured credit union or institution-affiliated party against whom any penalty is assessed under this paragraph shall be afforded a hearing before—(i)the Administration, if such insured credit union or institution-affiliated party submits a request for such hearing within 20 days after the issuance of the notice of assessment; or(ii)the appropriate United States district court, if such insured credit union or institution-affiliated party submits a request for such hearing and forum within 20 days after the issuance of the notice of assessment.; and(iii)by amending subparagraph (I)(ii) to read as follows:(ii)Appropriateness of penalty not reviewableIn any civil action under clause (i), except a civil action tried in a United States district court pursuant to subsection (e)(5)(B), (g)(8)(B), or (k)(2)(H)(ii), the validity and appropriateness of the penalty shall not be subject to review.; and(E)by adding at the end the following:(x)Savings clauseNothing in subsection (e)(5)(B), (g)(8)(B), or (k)(2)(H)(ii) shall be construed to—(1)limit the authority of the Administration to initiate an administrative enforcement action; or(2)impair the validity of any consent order..303.Supervisory Modifications for Appropriate Risk-based Testing(a)Examination relief for certain well managed and well capitalized financial institutions(1)Insured depository institutionsSection 10(d) of the Federal Deposit Insurance Act (12 U.S.C. 1820(d)) is amended by adding at the end the following:(11)Examination relief for certain well managed and well capitalized insured depository institutions(A)In generalNotwithstanding paragraphs (1) and (2), the following shall apply to a well managed and well capitalized insured depository institution with $6,000,000,000 or less in consolidated assets:(i)Alternating limited-scope examinationsAfter 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.(ii)Combined examinationsIf 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.(B)ExceptionSubparagraph (A) shall not apply to an insured depository institution if—(i)the insured depository institution is currently subject to a formal enforcement proceeding or order by the Corporation or the appropriate Federal banking agency; or(ii)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.(C)RulemakingNot 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—(i)establish procedures for the limited-scope examinations described in subparagraph (A)(i);(ii)establish procedures for reviewing insured depository institutions described under subparagraph (A), that—(I)experience material changes in financial condition or operational risk profile between scheduled examinations; or(II)have failed to comply with Federal or State banking laws and regulations; and(iii)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.(D)Rule of constructionNothing 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 appropriate to ensure safety and soundness or compliance with applicable laws.(E)DefinitionsIn this paragraph:(i)Consumer compliance examinationThe 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).(ii)Well capitalizedThe term well capitalized has the meaning given that term in section 38(b).(iii)Well managedWith 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..(2)Insured credit unionsSection 204 of the Federal Credit Union Act (12 U.S.C. 1784) is amended by adding at the end the following:(h)Examination relief for certain well managed and well capitalized insured credit unions(1)In generalNotwithstanding any other provision of this section, the following shall apply to a well managed and well capitalized insured credit union with $6,000,000,000 or less in consolidated assets:(A)Alternating limited-scope examinationsAfter 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.(B)Combined examinationsIf 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.(2)ExceptionParagraph (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.(3)RulemakingNot 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—(A)establish procedures for the limited-scope examinations described in paragraph (1)(A);(B)establish procedures for reviewing insured credit unions that—(i)experience material changes in financial condition or operational risk profile between scheduled examinations; or(ii)have failed to comply with Federal or State banking laws and regulations; and(C)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.(4)Rule of constructionNothing 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 appropriate to ensure safety and soundness or compliance with applicable laws.(5)DefinitionsIn this paragraph:(A)Consumer compliance examinationThe 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).(B)Well capitalizedThe term well capitalized has the meaning given that term in section 216(c).(C)Well managedWith 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..(b)Examination practices(1)Insured depository institutionsSection 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:(12)Examination practicesWith 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—(A)ensure the examination is led by, to the maximum extent practicable, an examiner with significant experience as an examiner;(B)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;(C)make every effort, to the maximum extent practicable, to schedule the examination at a time that is convenient for the institution; and(D)to the maximum extent practicable, give the institution advance notice of issues expected to be covered in the examination.(13)ReportIn its annual report to Congress, each Federal banking agency shall include—(A)information on how the agency is complying with paragraphs (11) and (12); and(B)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—(i)the average experience of examiners, including the average number of years of examiner experience of those who lead on-site examinations;(ii)the average number of examiners utilized; and(iii)the average amount of time the agency spends visiting such institutions for on-site examinations..(2)Insured credit unionsSection 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:(i)Examination practicesWith 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—(1)ensure the examination is led by, to the maximum extent practicable, an examiner with significant experience as an examiner;(2)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;(3)make every effort, to the maximum extent practicable, to schedule the examination at a time that is convenient for the credit union; and(4)to the maximum extent practicable, give the credit union advance notice of issues expected to be covered in the examination.(j)ReportIn its annual report to Congress, the National Credit Union Administration shall include—(1)information on how the Administration is complying with subsections (h) and (i); and(2)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—(A)the average experience of examiners, including the average number of years of examiner experience of those who lead on-site examinations;(B)the average number of examiners utilized; and(C)the average amount of time the Administration spends visiting such credit unions for on-site examinations..304.Financial Integrity and Regulation Management(a)FindingsCongress finds that—(1)the primary objective of financial regulation and supervision by the Federal banking agencies is to promote safety and soundness of depository institutions;(2)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;(3)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;(4)financial service providers should strive to ensure that all business decisions are based on factors free from unlawful prejudice or political influence;(5)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;(6)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(7)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.(b)DefinitionsIn this section:(1)Depository institutionThe term depository institution—(A)has the meaning given the term in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813);(B)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(C)includes an insured credit union, as such term is defined in section 101 of the Federal Credit Union Act (12 U.S.C. 1752).(2)Federal banking agencyThe term Federal banking agency—(A)has the meaning given the term in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813); and(B)includes—(i)the National Credit Union Administration; and(ii)the Bureau of Consumer Financial Protection.(3)Foreign terrorist organizationThe 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).(4)Reputational riskThe 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.(5)State sponsors of terrorismThe 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—(A)section 1754(c)(1)(A)(i) of the Export Control Reform Act of 2018 (50 U.S.C. 4813(c)(1)(A)(i));(B)section 620A of the Foreign Assistance Act of 1961 (22 U.S.C. 2371);(C)section 40(d) of the Arms Export Control Act (22 U.S.C. 2780(d)); or(D)any other provision of law.(c)Study on reputational riskNot later than 1 year after the date of the enactment of this Act, each Federal banking agency shall—(1)carry out a study to evaluate the use of reputational risk in the supervision of depository institutions; and(2)determine whether the removal of reputational risk in the supervision of depository institutions would threaten the safety and soundness of those depository institutions.(d)Removal of reputational risk as a consideration in the supervision of depository institutionsIf a Federal banking agency determines, under subsection (c), that the removal of reputational risk in the supervision of depository institutions would not threaten the safety and soundness of those depository institutions, the 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.(e)ProhibitionIf a Federal banking agency determines, under subsection (c), that the removal of reputational risk in the supervision of depository institutions would not threaten the safety and soundness of those depository institutions, the agency may not engage in rulemaking, the issuance of guidance, supervision activities, or enforcement activities related to the reputational risk of a depository institution or the managing of reputational risk by a depository institution, including—(1)establishing any rule, regulation, requirement, standard, or supervisory expectation concerning or related to the reputational risk of a depository institution, or the management thereof, whether binding or not;(2)conducting any examination, assessment, data collection, or other supervisory exercise concerning or related to reputational risk of a depository institution, or the management thereof;(3)issuing any examination finding, supervisory criticism, or other supervisory or examination communication concerning or related to reputational risk of a depository institution, or the management thereof;(4)making any supervisory ratings decision or determination that is based, in whole or in part, on any matter concerning or related to reputational risk of a depository institution, or the management thereof; and(5)taking any formal or informal enforcement action that is based, in whole or in part, on any matter concerning or related to reputational risk of a depository institution, or the management thereof.(f)ReportsNot 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—(1)confirms implementation of this section; and(2)describes any changes made to internal policies as a result of this section.IVRegulatory Accountability and Transparency401.FDIC Board AccountabilitySection 2 of the Federal Deposit Insurance Act (12 U.S.C. 1812) is amended—(1)by striking Consumer Financial Protection Bureau each place such term appears and inserting Bureau of Consumer Financial Protection; (2)by amending subsection (a)(1)(C) to read as follows:(C)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.; and(3)in subsection (c)—(A)in paragraph (1), by adding at the end the following: No individual may be appointed as a member for more than two terms.; and(B)by adding at the end the following:(4)Maximum length of serviceNotwithstanding any other provision of this Act, no person shall serve as a member for more than twelve years in total..402.Stop Agency Fiat Enforcement of Guidance(a)In generalEach 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.(b)Guidance clarity statementA 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..(c)DefinitionsIn this section:(1)Financial agencyThe term financial agency means the following:(A)The Bureau of Consumer Financial Protection.(B)The Department of Housing and Urban Development.(C)The Department of the Treasury.(D)The Federal Deposit Insurance Corporation.(E)The Federal Housing Finance Agency.(F)The Board of Governors of the Federal Reserve System.(G)The National Credit Union Administration.(H)The Office of the Comptroller of the Currency.(I)The Securities and Exchange Commission.(2)GuidanceThe 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)a rule promulgated pursuant to notice and comment under section 553 of title 5, United States Code;(B)a rule exempt from rulemaking requirements under section 553(a) of title 5, United States Code;(C)a rule of financial agency organization, procedure, or practice under section 553(b)(A) of title 5, United States Code;(D)a decision of a financial agency adjudication under section 554 of title 5, United States Code, or any similar statutory provision;(E)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(F)internal executive branch legal advice or legal opinions addressed to executive branch officials.403.Regulatory Efficiency, Verification, Itemization, and Enhanced WorkflowSection 2222 of the Economic Growth and Regulatory Paperwork Reduction Act of 1996 (12 U.S.C. 3311) is amended—(1)by striking appropriate Federal banking agency each place such term appears and inserting Federal financial institutions regulatory agency;(2)by striking appropriate Federal banking agencies and inserting Federal financial institutions regulatory agencies;(3)in subsection (a)—(A)by striking represented on the Council; and(B)by striking once every 10 years and inserting once every 8 years;(4)in subsection (b)—(A)by redesignating paragraphs (1) and (2) as subparagraphs (A) and (B), respectively (and adjusting the margins accordingly);(B)by striking In conducting and inserting the following:(1)Solicitation of public commentIn conducting; and(C)by adding at the end the following:(2)Internal review of cumulative impactEach 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—(A)assesses the effects of such regulations on consumers’ access to financial products and services;(B)assesses the effects of such regulations on the availability of financial products and services to financial and nonfinancial firms;(C)assesses the impact of such regulations on credit availability and financial market liquidity in United States financial markets;(D)assess the effects of such regulations on consumer protection; (E)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;(F)to the extent practicable, quantifies the direct and indirect economic costs imposed by such regulations; and(G)includes recommendations to streamline or eliminate duplicative, outdated, and unnecessarily burdensome regulations.;(5)in subsection (c)—(A)by striking subsection (b)(2) and inserting subsection (b)(1)(B), and the internal review under subsection (b)(2),; and(B)by striking once every 10 years and inserting once every 8 years;(6)in subsection (e)—(A)in paragraph (1), by striking and at the end;(B)by redesignating paragraph (2) as paragraph (3);(C)by inserting after paragraph (1) the following:(2)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; and(D)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(7)by adding at the end the following:(f)Federal financial institutions regulatory agency definedThe 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). .VStrengthening Local Bank Funding501.Bringing the Discount Window into the 21st CenturySection 10 of the Federal Reserve Act (12 U.S.C. 241 et seq.) is amended by inserting after paragraph (10) the following:(11)Review of discount window operations(A)In generalNot 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.(B)ContentsThe review required by subparagraph (A) shall include a consideration of—(i)the effectiveness of the discount window in providing liquidity to financial institutions, including in times of financial stress;(ii)whether the technology infrastructure, including means of communications, are sufficient to support the timely provision of liquidity, including in times of financial stress;(iii)the effectiveness of cybersecurity measures implemented with respect to discount window operations;(iv)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;(v)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;(vi)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;(vii)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;(viii)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—(I)help financial institutions better respond to rapid liquidity shortfalls; and(II)prevent broader financial instability; and(ix)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.(C)Remediation planAfter the Board of Governors completes the review required by subparagraph (A), the Board of Governors, in consultation with the Federal reserve banks, shall—(i)identify deficiencies with the discount window and areas for enhancing discount window effectiveness; and(ii)develop a written plan to remediate the identified deficiencies and implement the identified enhancements, which shall include—(I)an identification of actions that will be taken to enhance discount window effectiveness and remediate identified deficiencies;(II)timelines and milestones for implementing the plan and measures to demonstrate how the implemented improvements will be maintained on an ongoing basis; and(III)measures of managing and controlling any deficiencies and current operations until the plan is implemented in full.(D)Report to Congress on review and plan(i)In generalNot 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—(I)the findings of the review required by subparagraph (A); and(II)the remediation plan required by subparagraph (C).(ii)ConsultationBefore submitting the report required by clause (i), the Board of Governors shall—(I)provide a copy of the proposed report to the Comptroller of the Currency, the Federal Deposit Insurance Corporation, the National Credit Union Administration, and the Secretary of the Treasury; and(II)provide the Comptroller of the Currency, the Federal Deposit Insurance Corporation, the National Credit Union Administration, and the Secretary of the Treasury with an opportunity to provide feedback on the report.(iii)TestimonyThe 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.(E)Annual reports to Congress(i)Reports by the BoardThe 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).(ii)Reports by the Inspector GeneralThe 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).(F)Confidential report informationAny report required under this paragraph may contain a confidential annex containing information that, if made public, could—(i)impact monetary policy, financial stability, or cybersecurity; or(ii)significantly endanger the safety and soundness of any financial institution.(G)RepealThis 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..502.Keeping Deposits Local(a)Amount of reciprocal deposits that are not considered To be funds obtained by or through a deposit brokerSection 29(i)(1)(C) of the Federal Deposit Insurance Act (12 U.S.C. 1831f(i)(1)(C)) is amended by striking $96,333,333,333 and inserting $250,000,000,000. (b)Definition of Agent InstitutionSection 29(i) of the Federal Deposit Insurance Act (12 U.S.C. 1831f(i)) is amended—(1)in paragraph (2)(A)—(A)in clause (i), by striking subclause (I) and inserting the following:(I)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;(B)by redesignating clauses (ii) and (iii) as clauses (iii) and (iv), respectively; and(C)by inserting after clause (i) the following:(ii)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;; and(2)by adding at the end the following:(3)Reservation of authorityIf 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..(c)Reciprocal deposits study(1)In generalThe Federal Deposit Insurance Corporation, in consultation with the Board of Governors of the Federal Reserve System, shall carry out a study on reciprocal deposits.(2)ContentsThe study required under paragraph (1) shall include—(A)an analysis of how reciprocal deposits have performed since 2018, which shall include—(i)the use of quantitative and qualitative data;(ii)a breakdown of the usage of reciprocal deposits by size of insured depository institution;(iii)the usage of reciprocal deposits during periods of stress; and(iv)an analysis, to the extent practicable, of end-user depositors, such as municipalities, businesses, and non-profit organizations, that drive demand for reciprocal products;(B)an analysis, to the extent practicable, of how reciprocal deposits compare to other deposit arrangements; and(C)an analysis of the benefits and potential risks of reciprocal deposits.(3)ReportNot 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).VIPromoting Bank Competition and Merger Clarity601.Bank Competition Modernization(a)In generalSection 18(c) of the Federal Deposit Insurance Act (12 U.S.C. 1828(c)), as amended by section 604(c), is further amended—(1)in paragraph (4)(C)—(A)in clause (i), by striking or at the end;(B)in clause (ii), by striking the period at the end and inserting ; or; and(C)by adding at the end the following:(iii)the proposed merger transaction would result in an entity with less than $10,000,000,000 in assets and would not result in there being only one insured depository institution with a physical presence in any relevant metropolitan statistical area.; and (2)by adding at the end the following:(16)For merger transactions resulting in institutions with less than $10,000,000,000 in assets and that would not result in there being only one insured depository institution with a physical presence in any relevant metropolitan statistical areaNotwithstanding paragraph (5), if a proposed merger transaction would result in an institution with less than $10,000,000,000 in assets and would not result in there being only one insured depository institution with a physical presence in any relevant metropolitan statistical area, then the responsible agency shall not consider whether such merger transaction would—(A)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(B)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..(b)For bank holding companiesSection 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:(8)For proposed transactions resulting in companies with less than $10,000,000,000 in assets and that would not result in there being only one insured depository institution with a physical presence in any relevant metropolitan statistical areaNotwithstanding 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 and would not result in there being only one insured depository institution with a physical presence in any relevant metropolitan statistical area, then the Board shall not consider whether such acquisition, merger, or consolidation would—(A)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(B)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..(c)For savings and loan holding companiesSection 10(e) of the Home Owners’ Loan Act (12 U.S.C. 1467a(e)), as amended by section 604(b), is further amended by adding at the end the following:(10)For proposed transactions resulting in companies with less than $10,000,000,000 in assets and that would not result in there being only one insured depository institution with a physical presence in any relevant metropolitan statistical areaNotwithstanding 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 and would not result in there being only one insured depository institution with a physical presence in any relevant metropolitan statistical area, then the Board shall not consider whether the transaction would—(A)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(B)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..602.Merger Agreement Approvals Clarity and Predictability(a)StudyThe 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—(1)include an evaluation of relevant quantifiable metrics;(2)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;(3)consider the benefits and risks of utilizing different merger review approaches and procedures in compliance with the law; and(4)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.(b)ReportNot 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).(c)DefinitionsIn this section:(1)ApplicationThe term application means an application, notice, or other similar request for permission submitted to a Federal depository institution regulatory agency.(2)Federal depository institution regulatory agencyThe 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.(3)Insured depository institutionThe term insured depository institution—(A)has the meaning given that term in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813); and(B)means an insured credit union, as defined in section 101 of the Federal Credit Union Act (12 U.S.C. 1752).(4)Insured depository institution merger applicationThe 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—(A)section 10(e) of the Home Owners’ Loan Act (12 U.S.C. 1467a(e));(B)section 205(b) of the Federal Credit Union Act (12 U.S.C. 1785(b));(C)section 7(j) of the Federal Deposit Insurance Act (12 U.S.C. 1817(j));(D)section 18(c)(2) of the Federal Deposit Insurance Act (12 U.S.C. 1828(c)(2));(E)section 3 of the Bank Holding Company Act of 1956 (12 U.S.C. 1842); and(F)section 4 of the Bank Holding Company Act of 1956 (12 U.S.C. 1843).603.Merger Process Review(a)ReviewNot 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—(1)include an evaluation of relevant quantifiable metrics, including mean and median application processing times;(2)identify sources of delay that may hinder the timely consummation of proposals that meet the relevant statutory factors;(3)consider the benefits and risks of utilizing different merger review approaches and procedures in compliance with the law;(4)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(5)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.(b)ReportEach 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.(c)Agency responseIn 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.(d)DefinitionsIn this section:(1)ApplicationThe term application means an application, notice, or other similar request for permission submitted to a Federal depository institution regulatory agency.(2)Federal depository institution regulatory agencyThe 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.(3)Insured depository institutionThe term insured depository institution—(A)has the meaning given that term in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813); and(B)means an insured credit union, as defined in section 101 of the Federal Credit Union Act (12 U.S.C. 1752).(4)Insured depository institution merger applicationThe 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—(A)section 10(e) of the Home Owners’ Loan Act (12 U.S.C. 1467a(e));(B)section 205(b) of the Federal Credit Union Act (12 U.S.C. 1785(b));(C)section 7(j) of the Federal Deposit Insurance Act (12 U.S.C. 1817(j));(D)section 18(c)(2) of the Federal Deposit Insurance Act (12 U.S.C. 1828(c)(2));(E)section 3 of the Bank Holding Company Act of 1956 (12 U.S.C. 1842); and(F)section 4 of the Bank Holding Company Act of 1956 (12 U.S.C. 1843).604.Bank Failure Prevention(a)Bank holding companiesSection 3(b)(1) of the Bank Holding Company Act of 1956 (12 U.S.C. 1842(b)(1)) is amended—(1)by striking Upon receiving and inserting the following:(A)In generalUpon receiving;(2)by striking required and inserting acquired;(3)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(4)by adding at the end the following:(B)Complete record on an application(i)Notice to applicantNot 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—(I)confirms the record on the application is complete; or(II)details all additional information that is required for the record on that application to be complete.(ii)Extension of noticeNotwithstanding clause (i), the Board may, if an application is complex, extend the 30-day period described under clause (i) for an additional period not to exceed 60 days.(iii)Receipt of response; deeming of complete recordUpon 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—(I)determines that the applicant’s response was materially deficient; and(II)not later than 30 days after the date on which the Board received the response, provides the applicant a detailed notice describing the deficiencies.(iv)Treatment of third-party informationIn 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.(C)Deadline for determination(i)In generalNotwithstanding 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.(ii)Failure to make a determinationIf 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.(iii)Tolling of periodThe 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)..(b)Savings and loan holding companiesSection 10(e) of the Home Owners’ Loan Act (12 U.S.C. 1467a(e)) is amended—(1)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;(2)by redesignating paragraph (7) as paragraph (9); and(3)by inserting after paragraph (6) the following:(7)Complete record on an application(A)Notice to applicantNot 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—(i)confirms the record on the application is complete; or(ii)details all additional information that is required for the record on that application to be complete.(B)Extension of noticeNotwithstanding subparagraph (A), the Board may, if an application is complex, extend the 30-day period described under subparagraph (A) for a period not to exceed 60 days.(C)Receipt of response; deeming of complete recordUpon 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—(i)determines that the applicant’s response was materially deficient; and(ii)not later than 30 days after the date on which the Board received the response, provides the applicant a detailed notice describing the deficiencies.(D)Treatment of third-party informationIn 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.(8)Deadline for determination(A)In generalNotwithstanding 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.(B)Failure to make a determinationIf 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.(C)Tolling of periodThe 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)..(c)Insured depository institutionsSection 18(c) of the Federal Deposit Insurance Act (12 U.S.C. 1828(c)) is amended by adding at the end the following:(14)Complete record on an application(A)Notice to applicantNot 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—(i)confirms the record on the application is complete; or(ii)details all additional information that is required for the record on that application to be complete.(B)Extension of noticeNotwithstanding subparagraph (A), the responsible agency may, if an application is complex, extend the 30-day period described under subparagraph (A) for a period not to exceed 60 days.(C)Receipt of response; deeming of complete recordUpon 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—(i)determines that the applicant’s response was materially deficient; and(ii)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.(D)Treatment of third-party informationIn 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.(15)Deadline for determination(A)In generalNotwithstanding 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.(B)Failure to make a determinationIf 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.(C)Tolling of periodThe 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)..VIIStrengthening Transparency and Involvement in Bank Resolutions701.Least Cost Exception(a)In generalSection 13(c)(4) of the Federal Deposit Insurance Act (12 U.S.C. 1823(c)(4)) is amended—(1)in subparagraph (A)(ii), by inserting except as provided in subparagraph (I), before the total amount;(2)in subparagraph (E)(i), by inserting and except as provided in subparagraph (I), after appropriate,; and(3)by adding at the end the following:(I)Least cost resolution exception(i)In generalWith 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—(I)the Corporation determines that the selected alternative complies with the requirements of clause (iii); and(II)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.(ii)Maximum cost to the Deposit Insurance FundNot 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).(iii)Requirements describedThe requirements for the selected alternative described in clause (i) are as follows:(I)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.(II)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).(III)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—(aa)made over a period to be determined by the Corporation, but which may not be less than 5 years; and(bb)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.(iv)Report to CongressNot 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.(v)Cost determinationsAll cost determinations required under this subparagraph shall be made in accordance with subparagraphs (B) and (C).(vi)DefinitionsIn this subparagraph:(I)Covered alternativeThe 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.(II)Global systemically important banking organizationThe 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..(b)Rule of constructionSection 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).702.Enhancing Bank Resolution Participation(a)StudyThe 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—(1)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;(2)the use by the Federal Deposit Insurance Corporation of the modified bidder qualification process;(3)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;(4)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;(5)with respect to such receiverships, the extent to which greater use of shelf charters and modified bidder qualification processes could have—(A)expanded the pool of participants in the acquisition of the assets or liabilities of such failed insured depository institutions;(B)resulted in greater competition and diversity in market outcomes;(C)protected the Deposit Insurance Fund; or(D)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;(6)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(7)any benefits and risks of private equity ownership of banks through the use of shelf charters and modified bidder qualification processes.(b)ReportNot 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—(1)all findings and determinations made in carrying out the study required under subsection (a); and(2)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.(c)DefinitionsIn this section:(1)Insured depository institutionThe term insured depository institution has the meaning given the term in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813).(2)Modified bidder qualification processThe 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.(3)Shelf charterThe 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 2017.703.Failing Bank Acquisition Fairness(a)Concentration limit exceptions only available to avoid serious adverse economic or financial effects(1)Concentration limits with respect to deposits(A)Federal Deposit Insurance ActThe Federal Deposit Insurance Act (12 U.S.C. 1811 et seq.) is amended—(i)in section 18(c)(13)—(I)by amending subparagraph (B) to read as follows:(B)Subparagraph (A) shall not apply to an interstate merger transaction if—(i)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(ii)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).; and(II)in subparagraph (C)—(aa)in clause (i), by striking and at the end;(bb)in clause (ii), by striking the period at the end and inserting a semicolon; and(cc)by adding at the end the following:(iii)the term qualified bid means an application, proposed application, or bid from a company where—(I)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(II)upon consummation of the transaction, the resulting insured depository institution is well capitalized;(iv)the term well capitalized—(I)with respect to an insured depository institution, has the meaning given such term in section 38(b) (12 U.S.C. 1831o(b));(II)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));(III)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(IV)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(v)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)).; and(ii)in section 44, by amending subsection (e) to read as follows:(e)Exception for Banks in Default or in Danger of Default(1)General exceptionThe 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—(A)the merger transaction involves 1 or more banks in default or in danger of default; or(B)the Corporation provides assistance under section 13(c) to facilitate such merger transaction. (2)Concentration limit exceptionThe responsible agency may, without regard to subsection (b)(2), approve an application under subsection (a)(1) for approval of a merger transaction if—(A)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(B)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).(3)Qualified bid definedIn this subsection, the term qualified bid has the meaning given that term in section 18(c)(13)(C)..(B)Bank Holding Company Act of 1956The Bank Holding Company Act of 1956 (12 U.S.C. 1841 et seq.) is amended—(i)in section 3(d), by amending paragraph (5) to read as follows:(5)Exception for banks in default or in danger of default(A)General exceptionThe Board may, without regard to subparagraph (B) or (D) of paragraph (1) or paragraph (3), approve an application pursuant to paragraph (1)(A) if—(i)the application is for an acquisition of 1 or more banks in default or in danger of default; or(ii)the application is for an acquisition with respect to which assistance is provided under section 13(c) of the Federal Deposit Insurance Act.(B)Concentration limit exceptionThe Board may, without regard to paragraph (2), approve an application pursuant to paragraph (1)(A) if—(i)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(ii)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).(C)Qualified bid definedIn this paragraph, the term qualified bid has the meaning given that term in section 18(c)(13)(C) of the Federal Deposit Insurance Act.; and(ii)in section 4(i)(8), by amending subparagraph (B) to read as follows:(B)ExceptionSubparagraph (A) shall not apply to an acquisition if—(i)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(ii)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). .(2)Concentration limit with respect to consolidated liabilitiesSection 14(c) of the Bank Holding Company Act of 1956 (12 U.S.C. 1852(c)) is amended—(A)by redesignating paragraphs (1), (2), and (3) as subparagraphs (A), (B), and (C), respectively;(B)by striking With the and inserting the following:(1)In generalWith the; and(C)by adding at the end the following:(2)LimitationThe 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)..(b)Congressional notification and justification for waivers(1)In generalWhenever 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)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;(B)a description of alternative bids or outcomes considered, including efforts to solicit and encourage bids from entities that would not require a waiver;(C)an explanation of why alternative bids were not selected, if applicable; and(D)any recommendations for legislative or regulatory changes to improve competition in future insured depository institution resolutions.(2)Public disclosureThe 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.(c)Limitation on considering bad faith bids in least cost determinationSection 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:(J)Limitation on considering bad faith bidsIn making a determination under this paragraph of whether an exercise of authority is the least costly to the Deposit Insurance Fund, any application, proposed application, or bid that would result in violation of—(i)section 18(c)(13) or 44(b)(2), or(ii)section 3(d)(2), 4(i)(8), or 14 of the Bank Holding Company Act of 1956,shall not be considered a possible method for meeting the Corporation’s obligation under this section for purposes of subparagraph (A)..VIIIFacilitating Innovation and Bank Partnerships801.Merchant Banking Modernization(a)In generalSection 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 Main Street 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.(b)Merchant banking study(1)In generalNot later than 1 year after the date of enactment of this Act, the Board of Governors of the Federal Reserve System shall carry out a study on merchant banking investments to assess—(A)the number, investment size, holding period, and risk characteristics of merchant banking investments by financial holding companies, with the assessment of investment sizes and holding periods based on the average, median, and distribution of the investment sizes and holding periods;(B)the types of businesses, projects, assets, and activities in which such merchant banking investments are made, including the extent to which such merchant banking investments support infrastructure projects and housing development and construction; and(C)any information, analyses, or findings related to merchant banking investments that the Board determines to be relevant.(2)ReportNot later than the end of the 18-month period beginning on the date of enactment of this Act, the Board 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 this subsection.802.Bank-Fintech Partnership Enhancement(a)Study on bank-Fintech partnerships(1)StudyThe 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—(A)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(B)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.(2)ReportNot 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).(3)Banking organization definedIn 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).(b)Study on credit union-Fintech partnerships(1)StudyThe National Credit Union Administration shall carry out a study of—(A)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(B)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.(2)ReportNot 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).803.Discretionary surplus fund(a)In generalThe dollar amount specified under section 7(a)(3)(A) of the Federal Reserve Act (12 U.S.C. 289(a)(3)(A)) is reduced by $425,000,000.(b)Effective dateThe amendment made by subsection (a) shall take effect on September 1, 2036. Passed the House of Representatives July 21, 2026.Kevin F. McCumber,Clerk.

91 HR 6955 RH: Main Street Capital Access Act U.S. House of Representatives 2026-04-20 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. IBUnion Calendar No. 535119th CONGRESS2d SessionH. R. 6955[Report No. 119–617]IN THE HOUSE OF REPRESENTATIVESJanuary 7, 2026Mr. Hill of Arkansas (for himself, Mr. Barr, Mr. Huizenga, Mr. Lucas, Mr. Sessions, Mrs. Wagner, Mr. Williams of Texas, Mr. Emmer, Mr. Loudermilk, Mr. Davidson, Mr. Rose, Mr. Steil, Mr. Timmons, Mr. Stutzman, Mr. Norman, Mr. Meuser, Mrs. Kim, Mr. Donalds, Mr. Garbarino, Mr. Fitzgerald, Mr. Flood, Mr. Lawler, Ms. De La Cruz, Mr. Ogles, Mr. Nunn of Iowa, Mrs. McClain, Ms. Salazar, Mr. Downing, Mr. Haridopolos, and Mr. Moore of North Carolina) introduced the following bill; which was referred to the Committee on Financial ServicesApril 20, 2026Additional sponsors: Mr. Kennedy of Utah, Mr. Knott, Mr. Calvert, and Mrs. FedorchakApril 20, 2026Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printedStrike out all after the enacting clause and insert the part printed in italicFor text of introduced bill, see copy of bill as introduced on January 7, 2026A BILLTo make improvements to the Federal banking laws, and for other purposes.1.Short title; table of contents(a)Short titleThis Act may be cited as the Main Street Capital Access Act or the Main Street Act.(b)Table of contentsThe table of contents for this Act is as follows:Sec. 1. Short title; table of contents.Title I—New Bank Formation and Local Community AccessSec. 101. Promoting New Bank Formation.Sec. 102. New Bank Application Numbers Knowledge.Sec. 103. Rural Depositories Revitalization Studies.Sec. 104. Community Investment and Prosperity.Sec. 105. CDFI Fund Transparency.Sec. 106. CDFI Bond Guarantee Improvement.Title II—Tailoring Bank RegulationSec. 201. Taking Account of Institutions with Low Operation Risk.Sec. 202. Small Bank Holding Company Relief.Sec. 203. Community Bank Leverage Improvement and Flexibility for Transparency.Sec. 204. Tailoring and Indexing Enhanced Regulations.Sec. 205. Community Bank Regulatory Tailoring.Sec. 206. Credit Union Board Modernization.Title III—Fair and Transparent Bank SupervisionSec. 301. Halting Uncertain Methods and Practices in Supervision.Sec. 302. Fair Audits and Inspections for Regulators’ Exams.Sec. 303. Supervisory Modifications for Appropriate Risk-based Testing.Sec. 304. Tailored Regulatory Updates for Supervisory Testing.Sec. 305. Financial Integrity and Regulation Management.Title IV—Regulatory Accountability and TransparencySec. 401. FDIC Board Accountability.Sec. 402. Stop Agency Fiat Enforcement of Guidance.Sec. 403. Regulatory Efficiency, Verification, Itemization, and Enhanced Workflow.Sec. 404. American Financial Institution Regulatory Sovereignty and Transparency.Title V—Strengthening Local Bank FundingSec. 501. Bringing the Discount Window into the 21st Century.Sec. 502. Keeping Deposits Local.Sec. 503. Community Bank Deposit Access.Title VI—Promoting Bank Competition and Merger ClaritySec. 601. Bank Competition Modernization.Sec. 602. Merger Agreement Approvals Clarity and Predictability.Sec. 603. Merger Process Review.Sec. 604. Bank Failure Prevention.Title VII—Strengthening Transparency and Involvement in Bank ResolutionsSec. 701. Least Cost Exception.Sec. 702. Enhancing Bank Resolution Participation.Sec. 703. Failing Bank Acquisition Fairness.Sec. 704. Systemic Risk Authority Transparency.Title VIII—Facilitating Innovation and Bank PartnershipsSec. 801. Merchant Banking Modernization.Sec. 802. Bank-Fintech Partnership Enhancement.INew Bank Formation and Local Community Access101.Promoting New Bank Formation(a)Phase-In of capital standardsNotwithstanding 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—(1)the date on which the depository institution became an insured depository institution; or(2)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.(b)Changes to business plans(1)In generalDuring 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.(2)Review of changesThe 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)—(A)approve, conditionally approve, or deny such request; and(B)notify the applicant of such decision and, if the agency denies the request—(i)provide the applicant with the reason for such denial; and(ii)suggest changes to the request that, if adopted, would allow the agency to approve such request.(3)Result of failure to actIf 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.(c)Rural community depository institution leverage ratio(1)In generalDuring 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—(A)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(B)7.5 percent.(2)Phase-In authorityThe 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).(3)DefinitionsIn this subsection:(A)Community Bank Leverage RatioThe 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).(B)Rural areaThe term rural area means—(i)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(ii)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.(C)Rural depository institutionThe term rural depository institution means a depository institution—(i)with total consolidated assets of less than $10,000,000,000; and(ii)located in a rural area.(d)Agricultural loan authority for Federal savings associationsSection 5(c) of the Home Owners’ Loan Act (12 U.S.C. 1464(c)) is amended—(1)in paragraph (1), by adding at the end the following:(V)Agricultural loansSecured or unsecured loans for agricultural purposes.; and(2)in paragraph (2)(A), by striking business, or agricultural and inserting or business.(e)Study on de novo insured depository institutions(1)StudyThe Federal banking agencies shall, jointly, carry out a study on—(A)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(B)ways to promote more de novo insured depository institutions in areas currently underserved by insured depository institutions.(2)Report to CongressNot 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).(f)DefinitionsIn 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).102.New Bank Application Numbers Knowledge(a)Annual report on national bank and Federal savings association charter applicationsThe 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:(1)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.(2)The mean and median times for preliminary approval of such applications.(3)The mean and median times for final approval of such applications.(4)To the extent practicable, common reasons leading to the denial, withdrawal, or expiration of preliminary approval of such applications.(b)Annual report on Federal credit union charter applicationsThe 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:(1)The number of Federal credit union charter applications received, approved on a final basis, denied, withdrawn, inactive, or returned pending resubmission.(2)The mean and median times for final approval of such applications.(3)To the extent practicable, common reasons leading to application denial, withdrawal, inactivity, or to applications being returned for resubmission.(c)Annual report on depository institution holding company applications(1)In generalThe 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:(A)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.(B)The mean and median times to approve such applications.(C)To the extent practicable, common reasons leading to denial or withdrawal of such applications.(2)Top-tier depository institution holding company definedIn 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.(d)Annual report on Federal deposit insurance applicationsThe 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:(1)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.(2)The mean and median times to approve such applications.(3)To the extent practicable, common reasons leading to denial or withdrawal of such applications.(e)Annual report on State depository institution and State credit union charter applications(1)In generalThe 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:(A)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.(B)The mean and median times to approve such applications, with times for each State shown separately.(C)To the extent practicable, common reasons leading to denial or withdrawal of such applications.(2)DefinitionsIn this subsection:(A)StateThe term State means any State of the United States, the District of Columbia, and any territory of the United States.(B)State depository institutionThe term State depository institution means—(i)a State depository institution, as defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813); and(ii)a State credit union, as defined in section 101 of the Federal Credit Union Act (12 U.S.C. 1752).103.Rural Depositories Revitalization Studies(a)Study on rural depository institutionsThe Federal banking agencies shall, jointly, carry out a study—(1)to identify methods to improve the growth, capital adequacy, and profitability of depository institutions in the United States that primarily serve rural areas; and(2)to identify Federal statutes (other than appropriations Acts) or regulations of the Federal banking agencies that limit—(A)the methods identified under paragraph (1); or(B)the establishment of de novo depository institutions in rural areas.(b)Report on rural depository institutionsNot 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).(c)Study on rural credit unionsThe National Credit Union Administration shall carry out a study—(1)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(2)to identify Federal statutes (other than appropriations Acts) or regulations of the National Credit Union Administration that limit—(A)the methods identified under paragraph (1); or(B)the establishment of de novo insured credit unions in rural areas.(d)Report on rural credit unionsNot 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).(e)DefinitionsIn this section:(1)Depository institutionThe term depository institution has the meaning given that term in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813).(2)Federal banking agenciesThe 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.(3)Insured credit unionThe term insured credit union has the meaning given that term in section 101 of the Federal Credit Union Act (12 U.S.C. 1752). (4)Rural areaThe term rural area means—(A)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(B)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.104.Community Investment and Prosperity(a)Revised Statutes of the United StatesThe 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.(b)Federal Reserve ActThe 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 20.105.CDFI Fund TransparencySection 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:(5)Annual testimonyThe 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..106.CDFI Bond Guarantee Improvement(a)Sense of CongressIt 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.(b)Guarantees for bonds and notes issued for community or economic development purposes(1)In generalSection 114A of the Community Development Banking and Financial Institutions Act of 1994 (12 U.S.C. 4713a) is amended—(A)in subsection (c)(2)—(i)by striking , multiplied by an amount equal to the outstanding principal balance of issued notes or bonds; and(ii)by inserting outstanding before principal amount;(B)by amending subsection (e)(2) to read as follows:(2)Limitation on guarantee amountThe 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.;(C)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(D)in subsection (k), by striking September 30, 2014 and inserting December 31, 2028.(2)Clerical amendmentThe 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:Sec. 114A. Guarantees for bonds and notes issued for community or economic development purposes..(c)Report on the CDFI Bond Guarantee ProgramNot 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).IITailoring Bank Regulation201.Taking Account of Institutions with Low Operation Risk(a)Tailoring regulation to business model and risk(1)DefinitionsIn this subsection—(A)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(B)the term regulatory action—(i)means any proposed, interim, or final rule or regulation; and(ii)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.(2)Consideration and tailoringFor any regulatory action occurring after the date of enactment of this Act, each Federal financial institutions regulatory agency shall—(A)take into consideration the risk profile and business models of each type of institution or class of institutions subject to the regulatory action; and(B)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.(3)Factors to considerIn carrying out the requirements of paragraph (2) with respect to a regulatory action, each Federal financial institutions regulatory agency shall consider—(A)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;(B)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(C)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.(4)Notice of proposed and final rulemakingEach 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).(5)Reports to Congress(A)Agency reportingNot 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.(B)GAO reportingNot 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). (b)Short-form call reports for all banks eligible for the community bank leverage ratioThe 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)).(c)Report to Congress on modernization of supervisionNot 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:(1)Changing bank business models.(2)Examiner workforce and training.(3)The structure of supervisory activities within banking agencies.(4)Improving bank-supervisor communication and collaboration.(5)The use of supervisory technology.(6)Supervisory factors uniquely applicable to community banks.(7)Changes in statutes necessary to achieve more effective supervision.202.Small Bank Holding Company ReliefNot 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.203.Community Bank Leverage Improvement and Flexibility for Transparency(a)Community Bank Leverage Ratio(1)In generalSection 201 of the Economic Growth, Regulatory Relief, and Consumer Protection Act (12 U.S.C. 5371 note) is amended—(A)in subsection (a)(3)(A), by striking $10,000,000,000 and inserting $15,000,000,000; and(B)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.(2)Rulemaking deadlineNot 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.(b)Review of the Community Bank Leverage Ratio(1)In generalThe 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—(A)those qualifying community banks with fewer assets; and(B)providing regulatory compliance burden relief so that the CBLR is simple to apply.(2)ReportNot 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—(A)all findings and determinations made in carrying out the review under paragraph (1); and(B)specific recommendations on modifications, if any, to—(i)the calculation of the numerator and denominator of the CBLR;(ii)the treatment of specific asset classes or exposures to better reflect the risk profiles of community banks;(iii)the definition of and qualifying criteria for a qualifying community bank;(iv)enhancements to the procedures for opting into or out of the CBLR framework, including streamlined reporting and transition mechanisms;(v)the grace period to facilitate the transition to and from a modified CBLR regime; and(vi)any statutory changes that may be needed to address such recommendations.(3)Qualifying community bank definedIn 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).204.Tailoring and Indexing Enhanced Regulations(a)Threshold adjustments To account for historical increases in current-Dollar United States gross domestic product(1)Federal Reserve ActSection 11 of the Federal Reserve Act (12 U.S.C. 248) is amended—(A)by redesignating the second subsection (s) (relating to assessments) as subsection (t); and(B)in subsection (t), as so redesignated—(i)in paragraph (2), by striking $100,000,000,000 each place that term appears and inserting $150,000,000,000; and(ii)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.(2)Bank Holding Company Act of 1956Section 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.(3)Financial Stability Act of 2010The Financial Stability Act of 2010 (12 U.S.C. 5311 et seq.) is amended—(A)in section 116(a) (12 U.S.C. 5326(a)), by striking $250,000,000,000 and inserting $370,000,000,000;(B)in section 121(a) (12 U.S.C. 5331(a)), by striking $250,000,000,000 and inserting $370,000,000,000;(C)in section 163(b) (12 U.S.C. 5363(b))—(i)by striking $250,000,000,000 each place that term appears and inserting $370,000,000,000; and(ii)by striking $10,000,000,000 and inserting $15,000,000,000;(D)in section 164 (12 U.S.C. 5364), by striking $250,000,000,000 and inserting $370,000,000,000; and(E)in section 165 (12 U.S.C. 5365)—(i)in subsection (a)—(I)in paragraph (1), by striking $250,000,000,000 and inserting $370,000,000,000; and(II)in paragraph (2)(C), by striking $100,000,000,000 and inserting $150,000,000,000;(ii)in subsection (h)(2), by striking $50,000,000,000 each place that term appears and inserting $75,000,000,000;(iii)in subsection (i)(2)(A), by striking $250,000,000,000 and inserting $370,000,000,000; and(iv)in subsection (j)(1), by striking $250,000,000,000 and inserting $370,000,000,000.(4)Economic Growth, Regulatory Relief, and Consumer Protection ActSection 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.(b)Periodic adjustments to thresholds To account for future increases in current-Dollar United States gross domestic product(1)In generalThe Financial Stability Act of 2010 (12 U.S.C. 5311 et seq.) is further amended by adding at the end the following:177.Periodic adjustments to thresholds to account for increases in current-dollar United States gross domestic product(a)In generalBy 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.(b)Covered thresholdsThe thresholds described in this subsection are the following:(1)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.(2)Each bank holding company total consolidated asset amount in—(A)sections 116(a), 121(a), 163(b), 164, 165(a)(1), 165(h)(2), and 165(j)(1) of this Act; and(B)section 401(f) of the Economic Growth, Regulatory Relief, and Consumer Protection Act.(3)Each financial company total consolidated asset amount in section 165(i)(2)(A) of this Act.(c)Currency of informationThe 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.(d)Rounding(1)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.(2)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.(e)PublicationNot 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.(f)Implementation periodAny 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).178.Adjustments to thresholds established by rule to account for increases in current-dollar United States gross domestic product(a)Agency reviewNot 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—(1)any regulation—(A)implementing section 165 of this Act; or(B)making specific cross-reference to any regulation of the Board of Governors implementing section 165 of this Act; and(2)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.(b)Modifications requiredThe 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—(1)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;(2)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(3)seek to adjust such thresholds, to the extent feasible, with rounding consistent with section 177(d) of this Act.(c)ReportUpon 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)..(2)Clerical amendmentThe 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:Sec. 177. Periodic adjustments to thresholds to account for increases in current-dollar United States gross domestic product.Sec. 178. Adjustments to thresholds established by rule to account for increases in current-dollar United States gross domestic product..205.Community Bank Regulatory Tailoring(a)Threshold adjustments to account for historical increases in current-dollar United States Gross Domestic Product(1)Bank holding company act of 1956The Bank Holding Company Act of 1956 (12 U.S.C. 1841 et seq.) is amended—(A)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(B)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.(2)Community reinvestment act of 1977Section 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.(3)Depository institution management interlocks actThe Depository Institution Management Interlocks Act (12 U.S.C. 3201 et seq.) is amended—(A)in section 202(4) (12 U.S.C. 3201(4)), by striking $100,000,000 and inserting $600,000,000;(B)in section 203(1) (12 U.S.C. 3202(1)), by striking $50,000,000 and inserting $110,000,000; and(C)in section 204 (12 U.S.C. 3203)—(i)by striking $2,500,000,000 and inserting $10,000,000,000; and(ii)by striking $1,500,000,000 and inserting $10,000,000,000.(4)Dodd-Frank wall street reform and consumer protection actThe Dodd-Frank Wall Street Reform and Consumer Protection Act (12 U.S.C. 5301 et seq.) is amended—(A)in section 210 (12 U.S.C. 5390)—(i)in subsection (o), by striking $50,000,000,000 in each place it appears and inserting $105,000,000,000; and(ii)in subsection (r), by striking $1,000,000 and inserting $5,000,000; and(B)in section 956(f) (12 U.S.C. 5641(f)), by striking $1,000,000,000 and inserting $3,000,000,000.(5)Federal credit union actThe Federal Credit Union Act (12 U.S.C. 1751 et seq.) is amended—(A)in section 202 (12 U.S.C. 1782)—(i)in subsection (a)(6)(C)(iii)—(I)in the heading, by striking De MINIMUS and inserting De MINIMIS; and(II)by striking $10,000,000 and inserting $34,000,000;(ii)in subsection (a)(6)(D)—(I)by striking $500,000,000 and inserting $2,000,000,000; and(II)by striking $10,000,000 and inserting $34,000,000;(iii)in subsection (b)(1)(A), by striking $50,000,000 each place that term appears and inserting $170,000,000; and(iv)in subsection (c)(1)(A)(iii), by striking $50,000,000 each place that term appears and inserting $170,000,000; and(B)in section 216 (12 U.S.C. 1790d)—(i)in subsection (f)(2), by striking $10,000,000 and inserting $34,000,000;(ii)in subsection (i)(4)(B), by striking $5,000,000 and inserting $17,000,000;(iii)in subsection (j)(2)(A), by striking $25,000,000 and inserting $51,000,000; and(iv)in subsection (o)(4), by striking $10,000,000 and inserting $34,000,000.(6)Federal deposit insurance actThe Federal Deposit Insurance Act (12 U.S.C. 1811 et seq.) is amended—(A)in section 7(a)(12) (12 U.S.C. 1817(a)(12)), by striking $5,000,000,000 and inserting $8,000,000,000;(B)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;(C)in section 36 (12 U.S.C. 1831m)—(i)in subsection (i), by striking $5,000,000,000 each place that term appears and inserting $21,000,000,000; and(ii)in subsection (j), by striking $150,000,000 each place that term appears and inserting $800,000,000; and(D)in section 38 (12 U.S.C. 1831o)—(i)in subsection (b), by striking $300,000,000 and inserting $2,000,000,000; and(ii)in subsection (k)—(I)by striking $50,000,000 and inserting $110,000,000; and(II)by striking $75,000,000 and inserting $150,000,000.(7)Federal home loan bank actSection 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.(8)Federal reserve actThe Federal Reserve Act (12 U.S.C. 221 et seq.) is amended—(A)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(B)in section 22(h)(5)(C) (12 U.S.C. 375b(h)(5)(C)) by striking $100,000,000 and inserting $500,000,000.(9)Home mortgage disclosure act of 1975The Home Mortgage Disclosure Act of 1975 (12 U.S.C. 2801 et seq.) is amended—(A)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(B)in section 309(a) (12 U.S.C. 2808(a)), by striking $10,000,000 and inserting $180,000,000.(10)Home owners’ loan actSection 5(u) of the Home Owners’ Loan Act (12 U.S.C. 1464(u)) is amended—(A)in paragraph (2)(A)(i), by striking $500,000 and inserting $3,000,000; and(B)in paragraph (2)(A)(ii), by striking $30,000,000 and inserting $160,000,000.(11)International lending supervision act of 1983Section 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.(12)Real estate settlement procedures act of 1974Section 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.(13)Revised statutes of the united statesSection 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.(14)Truth in lending actSection 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.(b)Threshold adjustments to account for historical increases in current-dollar United States Gross Domestic Product(1)In generalBy 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.(2)Currency of informationThe 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.(3)Rounding(A)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.(B)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.(C)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.(D)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.(E)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.(F)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.(G)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.(H)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.(I)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.(J)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.(K)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.(L)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.(4)PublicationNot 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.(5)Implementation periodThe 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).206.Credit Union Board ModernizationSection 113 of the Federal Credit Union Act (12 U.S.C. 1761b) is amended—(1)by striking monthly each place such term appears;(2)in the matter preceding paragraph (1), by striking The board of directors and inserting the following:(a)In generalThe board of directors;(3)in subsection (a) (as so designated), by striking shall meet at least once a month and; and(4)by adding at the end the following:(b)MeetingsThe board of directors of a Federal credit union shall meet as follows:(1)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.(2)Not less than six times annually, with at least one meeting held during each fiscal quarter, with respect to a Federal credit union—(A)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(B)with a capability of management rating under such composite rating of either 1 or

2.(3)Not less frequently than once a month, with respect to a Federal credit union—(A)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(B)with a capability of management rating under such composite rating of either 3, 4, or 5..IIIFair and Transparent Bank Supervision301.Halting Uncertain Methods and Practices in Supervision(a)FindingsCongress finds that—(1)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;(2)the CAMELS rating system relies heavily on examiner judgment, which can lead to subjective and inconsistent ratings across similar institutions;(3)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(4)examination and supervision, as well as the CAMELS rating system, should focus on a financial institution’s material financial condition or solvency.(b)Amendments to the CAMELS Rating System(1)In generalThe Federal Financial Institutions Examination Council Act of 1978 (12 U.S.C. 3301 et seq.) is amended by adding at the end the following:1012.Amendments to the CAMELS Rating System(a)In generalThe Council shall make recommendations to amend the Uniform Financial Institutions Rating System, and the CAMELS components thereunder, to—(1)establish articulable, clear, and reviewable criteria for assessing each CAMELS component;(2)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;(3)either—(A)eliminate the management component of the CAMELS rating system; or(B)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;(4)ensure that composite ratings consider the financial institution’s compliance with—(A)section 21 of the Federal Deposit Insurance Act (12 U.S.C. 1829b);(B)chapter 2 of title I of Public Law 91–508 (12 U.S.C. 1951 et seq.);(C)subchapter II of chapter 53 of title 31, United States Code; and(D)any other applicable requirements and implementing regulations relating to the prevention of money laundering and terrorist financing; and(5)ensure that composite ratings are determined based on a transparent methodology that is limited to the objective criteria established for each CAMELS component.(b)RulemakingNot 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).(c)Public comment periodIn issuing the rules required under subsection (b), the Federal financial institutions regulatory agencies shall—(1)publish a notice of proposed rulemaking with respect to such rules; and(2)provide for a public comment period of not less than 90 days.(d)Rule of constructionNothing 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..(2)Well managed definitionSection 2(o)(9)(A) of the Bank Holding Company Act of 1956 (12 U.S.C. 1841(o)(9)(A)) is amended—(A)by striking achievement of and all that follows through a CAMEL and inserting achievement of a CAMEL;(B)by striking ; and and inserting ; or; and(C)by striking clause (ii).302.Fair Audits and Inspections for Regulators’ Exams(a)Timeliness of examinations and examination reportsThe 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:1013.Timeliness of examinations and examination reports(a)Timeliness of examinationsA 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.(b)Final examination reportA 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—(1)the exit interview for an examination of the institution; or(2)the provision of additional material information by the institution relating to the examination.(c)Exit interview requirementWithin 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.(d)Examination materialsUpon 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..(b)Timeliness of required prudential private letter rulingsThe 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:1014.Timeliness of required prudential private letter rulings(a)Authority and regulation(1)In generalEach 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—(A)the agency’s non-objection to the financial institution conducting a particular activity;(B)the agency’s interpretation of a law or regulation as applied to a particular matter;(C)the agency’s interpretation of how generally accepted accounting principles or accounting objectives, standards, and requirements apply to a particular matter; or(D)the agency’s application of any supervisory guidance, statement of policy, or interpretive rule to a particular matter.(2)Covered action definedIn this subsection and with respect to a covered financial institution, the term covered action means—(A)any action in connection with a regulated activity that the covered financial institution is taking or is intending to take, including—(i)entering into a transaction;(ii)issuing a product or service; or(iii)changing the corporate structure of the covered financial institution; and(B)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)).(b)Contents of requestThe procedures established under subsection (a) shall provide that a request for written advice made under the procedures shall be in writing and contain—(1)the nature of the request;(2)applicable facts relating to the matter;(3)applicable law, regulation, or generally accepted accounting principles relating to the matter; and(4)a summary of the request.(c)Response to requestA Federal financial institutions regulatory agency receiving a request for written advice under subsection (a) shall, not later than 30 days after receiving the request—(1)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(2)if the request does not contain all of the information required under subsection (b)—(A)provide the financial institution with an explanation of what information is missing; and(B)notify the financial institution that the financial institution may provide the missing information to the agency within 30 days.(d)Providing missing informationIf 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).(e)DeterminationA 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)—(1)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);(2)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(3)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.(f)Limited binding effectWritten advice issued by a Federal financial institutions regulatory agency under the procedures established under this section—(1)shall be binding on the agency with respect to the financial institution requesting the written advice and the specific facts described in the request;(2)may be relied upon by the financial institution requesting the written advice in good faith; and(3)shall not be binding on the agency with respect to any other person or institution and shall not be treated as precedent.(g)Confidentiality and privilege(1)Treatment of written adviceWritten 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.(2)Publishing of anonymized or redacted summariesA Federal financial institutions regulatory agency may publish anonymized or redacted summaries of rulings for informational purposes.(h)Modification or revocationA Federal financial institutions regulatory agency may modify or revoke written advice issued under this section only if—(1)the requesting financial institution made a material misstatement or omission of fact;(2)there has been a change in controlling law; or(3)the ruling is inconsistent with a final rule or judicial decision issued after the date the written advice was issued.(i)Reasonable feesEach 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—(1)shall be based on the estimated cost to the agency of reviewing, analyzing, and responding to the request;(2)may vary based on the complexity of the request or the size of the requesting institution; and(3)shall be prescribed by regulation.(j)FinalityWritten advice issued under the procedures established under this section shall not be construed as a final agency action..(c)Office of Independent Examination Review(1)In generalThe 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:1015.Office of Independent Examination Review(a)EstablishmentThere is established in the Council an Office of Independent Examination Review (the Office).(b)Board of Independent Examination Review(1)In generalThe 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.(2)QualificationsThe President shall appoint 1 member of the Board from each of the following classes of individuals:(A)Individuals who have been employed by a Federal financial institutions regulatory agency.(B)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—(i)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;(ii)have academic or private sector experience relating to financial services; or(iii)have relevant work-related experience in consumer affairs or compliance with consumer protection laws with respect to financial institutions.(C)Individuals with at least 10 years private sector financial services senior management-level experience.(3)Prohibition on certain individuals serving as a Board memberThe President may not appoint an individual as a member of the Board if the individual—(A)is, or was during the previous 2-year period, employed by a Federal financial institutions regulatory agency or a Federal reserve bank; or(B)is, or was during the previous 2-year period, employed by a financial institution.(4)ConsultationIn appointing members of the Board, the President shall consult with the Federal financial institutions regulatory agencies and financial institutions.(5)Term(A)In generalEach 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.(B)Term limitationNo individual may serve more than 2 full terms on the Board.(6)Political affiliationNot more than 2 members of the Board shall be members of the same political party.(7)Quorum(A)In general3 members of the Board shall constitute a quorum.(B)Initial quorumDuring 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.(8)Rate of payThe 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. (c)StaffingThe 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.(d)DutiesThe Board shall—(1)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;(2)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;(3)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;(4)conduct a continuing and regular program of examination quality assurance for all examination types conducted by the Federal financial institutions regulatory agencies;(5)carry out an independent review of any supervisory appeal initiated under section 1016; and(6)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.(e)Confidentiality(1)In generalThe Board and the Council shall keep confidential—(A)all meetings, discussions, and information provided by financial institutions and Federal financial institutions regulatory agencies that involve confidential supervisory information or privileged information;(B)all information and communications exchanged between a financial institution and the Office of Independent Examination Review; and(C)all information and communications exchanged between a Federal financial institutions regulatory agency and the Office of Independent Examination Review.(2)Submission of information does not constitute a waiverSection 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).(3)Sharing of information without waiving privilegeThe 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))..(2)DefinitionsSection 1003 of the Federal Financial Institutions Examination Council Act of 1978 (12 U.S.C. 3302) is amended—(A)in paragraph (2), by striking and at the end; and(B)by adding at the end the following:(4)the term Board means the Board of Independent Examination Review established under section 1015(b);(5)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;(6)the term insured depository institution has the meaning given that term in section 3 of the Federal Deposit Insurance Act; and(7)the term insured credit union has the meaning given that term in section 101 of the Federal Credit Union Act..(d)Right to independent review of material supervisory determinationsThe 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:1016.Right to independent review of material supervisory determinations(a)In generalA 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.(b)Notice(1)TimingA 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.(2)ExtensionThe 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.(3)Identification of determinationThe written notice shall—(A)identify the material supervisory determination that is the subject of the requested independent examination review;(B)state the reasons why the institution believes that the material supervisory determination is incorrect or should otherwise be modified; and(C)include—(i)a clear and complete statement of all relevant facts and issues;(ii)all arguments that the institution wishes to present; and(iii)all relevant and material documents in the possession of the institution that the institution wishes to be considered.(4)Information made available to institutionAn 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.(5)Submission of recordAfter 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.(c)Determination; right to hearing(1)In generalThe Board shall—(A)determine the merits on the record, including whether the material supervisory determination being reviewed should be upheld, canceled, or modified; or(B)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.(2)Right to obtain testimonyA 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.(3)Basis of decisionThe Board shall issue a written decision based upon the record of the examination, supplemented by the record established at any hearing.(4)Standard of reviewThe 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.(5)Policy mattersThe 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.(d)Final decisionA decision by the Board on an independent review under this section shall—(1)be made not later than 60 days after the record has been closed; and(2)be deemed final and shall bind the agency whose supervisory determination was the subject of the review and the financial institution requesting the review.(e)Referral of violationsIf 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.(f)Annual report(1)In generalThe 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.(2)ConfidentialityIn 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.(g)Retaliation prohibited(1)In generalA Federal financial institutions regulatory agency may not—(A)retaliate against a financial institution, including service providers, or any institution-affiliated party, for exercising appellate rights under this section; or(B)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.(2)RetaliationFor 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.(h)RulemakingThe Board shall issue rules to establish procedures for hearings described under this section, including that—(1)a financial institution may appear at the hearing personally or through counsel;(2)a financial institution may provide an oral and written presentation at the hearing;(3)the Board may ask questions of any person participating in the hearing;(4)the hearing shall not be governed by the Federal Rules of Evidence; and(5)the Board shall have a verbatim transcript of the hearing prepared.(i)Safety and soundness exceptionThe 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..(e)Additional amendments(1)Regulatory appeals process, ombudsman, and alternative dispute resolution(A)In generalSection 309 of the Riegle Community Development and Regulatory Improvement Act of 1994 (12 U.S.C. 4806) is amended—(i)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);(ii)by striking subsections (a), (b), and (c);(iii)by redesignating subsections (d), (e), (f), and (g) as subsections (a), (b), (c), and (d), respectively;(iv)in subsection (b), as so redesignated—(I)in paragraph (2)—(aa)in subparagraph (B), by striking and at the end;(bb)in subparagraph (C), by striking the period and inserting ; and; and(cc)by adding at the end the following:(D)ensure that appropriate safeguards exist for protecting any party from retaliation by any agency for exercising rights under this subsection.; and(II)by adding at the end the following:(6)RetaliationFor 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.; and(v)in paragraph (1)(A) of subsection (c), as so redesignated—(I)in clause (ii), by striking ; and and inserting a semicolon;(II)in clause (iii), by striking ; and and inserting a semicolon; and(III)by adding at the end the following:(iv)any issue specifically listed in an exam report as a matter requiring attention by the institution’s management or board of directors; and(v)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.(B)EffectNothing 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.(2)Federal Credit Union ActSection 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.(3)Federal Financial Institutions Examination Council ActThe Federal Financial Institutions Examination Council Act of 1978 (12 U.S.C. 3301 et seq.) is amended—(A)in section 1003 (12 U.S.C. 3302)—(i)by striking paragraph (1) and inserting the following:(1)the term Federal financial institutions regulatory agencies—(A)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(B)includes the Bureau of Consumer Financial Protection for purposes of sections 1012 through 1015;; and(ii)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;;(B)in section 1004(a)(4) (12 U.S.C. 3303), by striking Consumer Financial Protection Bureau and inserting Bureau of Consumer Financial Protection; and(C)in section 1005 (12 U.S.C. 3304)—(i)by striking One-fifth and inserting One-fourth; and(ii)by inserting described under section 1003(1)(A) after agencies.(f)Election of forum for review of supervisory enforcementSection 8 of the Federal Deposit Insurance Act (12 U.S.C. 1818) is amended—(1)in subsection (b), by adding at the end the following:(11)HearingWith 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—(A)the appropriate Federal banking agency; or(B)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.;(2)in subsection (e), by adding at the end the following:(8)HearingWith 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—(A)the appropriate Federal banking agency; or(B)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.;(3)in subsection (h)—(A)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(B)by adding at the end the following:(4)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.(5)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.;(4)in subsection (i)(2)—(A)by amending subparagraph (E)(ii) to read as follows:(ii)Finality of assessmentIf, 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.;(B)by amending subparagraph (H) to read as follows:(H)HearingThe insured depository institution or institution-affiliated party against whom any penalty is assessed under this paragraph shall be afforded a hearing before—(i)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(ii)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.; and(C)by amending subparagraph (I)(ii) to read as follows:(ii)Appropriateness of penalty not reviewableIn 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.; and(5)by adding at the end the following:(x)Savings clauseNothing in subsection (b)(11)(B), (e)(8)(B), or (i)(2)(H)(ii) shall be construed to—(1)limit the authority of a Federal banking agency to initiate an administrative enforcement action; or(2)impair the validity of any consent order..303.Supervisory Modifications for Appropriate Risk-based Testing(a)Examination relief for certain well managed and well capitalized financial institutions(1)Insured depository institutionsSection 10(d) of the Federal Deposit Insurance Act (12 U.S.C. 1820(d)) is amended by adding at the end the following:(11)Examination relief for certain well managed and well capitalized insured depository institutions(A)In generalThe following shall apply to a well managed and well capitalized insured depository institution with $6,000,000,000 or less in consolidated assets:(i)Alternating limited-scope examinationsAfter 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.(ii)Combined examinationsIf 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.(B)ExceptionSubparagraph (A) shall not apply to an insured depository institution if—(i)the insured depository institution is currently subject to a formal enforcement proceeding or order by the Corporation or the appropriate Federal banking agency; or(ii)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.(C)RulemakingNot 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—(i)establish procedures for the limited-scope examinations described in subparagraph (A)(i);(ii)establish procedures for reviewing insured depository institutions described under subparagraph (A), that—(I)experience material changes in financial condition or operational risk profile between scheduled examinations; or(II)have failed to comply with Federal or State banking laws and regulations; and(iii)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.(D)Rule of constructionNothing 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.(E)DefinitionsIn this paragraph:(i)Consumer compliance examinationThe 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).(ii)Well capitalizedThe term well capitalized has the meaning given that term in section 38(b).(iii)Well managedWith 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..(2)Insured credit unionsSection 204 of the Federal Credit Union Act (12 U.S.C. 1784) is amended by adding at the end the following:(h)Examination relief for certain well managed and well capitalized insured credit unions(1)In generalThe following shall apply to a well managed and well capitalized insured credit union with $6,000,000,000 or less in consolidated assets:(A)Alternating limited-scope examinationsAfter 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.(B)Combined examinationsIf 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.(2)ExceptionParagraph (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.(3)RulemakingNot 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—(A)establish procedures for the limited-scope examinations described in paragraph (1)(A);(B)establish procedures for reviewing insured credit unions that—(i)experience material changes in financial condition or operational risk profile between scheduled examinations; or(ii)have failed to comply with Federal or State banking laws and regulations; and(C)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.(4)Rule of constructionNothing 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.(5)DefinitionsIn this paragraph:(A)Consumer compliance examinationThe 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).(B)Well capitalizedThe term well capitalized has the meaning given that term in section 216(c).(C)Well managedWith 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..(b)Examination practices(1)Insured depository institutionsSection 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:(12)Examination practicesWith 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—(A)ensure the examination is led by, to the maximum extent practicable, an examiner with significant experience as an examiner;(B)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;(C)make every effort, to the maximum extent practicable, to schedule the examination at a time that is convenient for the institution; and(D)to the maximum extent practicable, give the institution advance notice of issues expected to be covered in the examination.(13)ReportIn its annual report to Congress, each Federal banking agency shall include—(A)information on how the agency is complying with paragraphs (11) and (12); and(B)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—(i)the average experience of examiners, including the average number of years of examiner experience of those who lead on-site examinations;(ii)the average number of examiners utilized; and(iii)the average amount of time the agency spends visiting such institutions for on-site examinations..(2)Insured credit unionsSection 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:(i)Examination practicesWith 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—(1)ensure the examination is led by, to the maximum extent practicable, an examiner with significant experience as an examiner;(2)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;(3)make every effort, to the maximum extent practicable, to schedule the examination at a time that is convenient for the credit union; and(4)to the maximum extent practicable, give the credit union advance notice of issues expected to be covered in the examination.(j)ReportIn its annual report to Congress, the National Credit Union Administration shall include—(1)information on how the Administration is complying with subsections (h) and (i); and(2)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—(A)the average experience of examiners, including the average number of years of examiner experience of those who lead on-site examinations;(B)the average number of examiners utilized; and(C)the average amount of time the Administration spends visiting such credit unions for on-site examinations..304.Tailored Regulatory Updates for Supervisory TestingSection 10(d) of the Federal Deposit Insurance Act (12 U.S.C. 1820(d)) is amended—(1)in paragraph (4)(A), by striking $3,000,000,000 and inserting $6,000,000,000; and(2)in paragraph (10), by striking $3,000,000,000 and inserting $6,000,000,000.305.Financial Integrity and Regulation Management(a)FindingsCongress finds that—(1)the primary objective of financial regulation and supervision by the Federal banking agencies is to promote safety and soundness of depository institutions;(2)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;(3)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;(4)financial service providers should strive to ensure that all business decisions are based on factors free from unlawful prejudice or political influence;(5)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;(6)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(7)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.(b)DefinitionsIn this section:(1)Depository institutionThe term depository institution—(A)has the meaning given the term in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813);(B)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(C)includes an insured credit union, as such term is defined in section 101 of the Federal Credit Union Act (12 U.S.C. 1752).(2)Federal banking agencyThe term Federal banking agency—(A)has the meaning given the term in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813); and(B)includes—(i)the National Credit Union Administration; and(ii)the Bureau of Consumer Financial Protection.(3)Foreign terrorist organizationThe 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).(4)Reputational riskThe 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.(5)State sponsors of terrorismThe 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—(A)section 1754(c)(1)(A)(i) of the Export Control Reform Act of 2018 (50 U.S.C. 4813(c)(1)(A)(i));(B)section 620A of the Foreign Assistance Act of 1961 (22 U.S.C. 2371);(C)section 40(d) of the Arms Export Control Act (22 U.S.C. 2780(d)); or(D)any other provision of law.(c)Removal of reputational risk as a consideration in the supervision of depository institutionsEach 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.(d)ProhibitionNo 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—(1)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;(2)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;(3)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;(4)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(5)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.(e)ReportsNot 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—(1)confirms implementation of this section; and(2)describes any changes made to internal policies as a result of this section.IVRegulatory Accountability and Transparency401.FDIC Board AccountabilitySection 2 of the Federal Deposit Insurance Act (12 U.S.C. 1812) is amended—(1)by striking Consumer Financial Protection Bureau each place such term appears and inserting Bureau of Consumer Financial Protection; (2)by amending subsection (a)(1)(C) to read as follows:(C)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.; and(3)in subsection (c)—(A)in paragraph (1), by adding at the end the following: No individual may be appointed as a member for more than two terms.; and(B)by adding at the end the following:(4)Maximum length of serviceNotwithstanding any other provision of this Act, no person shall serve as a member for more than twelve years in total..402.Stop Agency Fiat Enforcement of Guidance(a)In generalThe 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.(b)Guidance clarity statementA 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..(c)DefinitionsIn this section:(1)Financial agencyThe term financial agency means the following:(A)The Bureau of Consumer Financial Protection.(B)The Department of Housing and Urban Development.(C)The Department of the Treasury.(D)The Federal Deposit Insurance Corporation.(E)The Federal Housing Finance Agency.(F)The Board of Governors of the Federal Reserve System.(G)The National Credit Union Administration.(H)The Office of the Comptroller of the Currency.(I)The Securities and Exchange Commission.(2)GuidanceThe 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)a rule promulgated pursuant to notice and comment under section 553 of title 5, United States Code;(B)a rule exempt from rulemaking requirements under section 553(a) of title 5, United States Code;(C)a rule of financial agency organization, procedure, or practice under section 553(b)(A) of title 5, United States Code;(D)a decision of a financial agency adjudication under section 554 of title 5, United States Code, or any similar statutory provision;(E)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(F)internal executive branch legal advice or legal opinions addressed to executive branch officials.403.Regulatory Efficiency, Verification, Itemization, and Enhanced WorkflowSection 2222 of the Economic Growth and Regulatory Paperwork Reduction Act of 1996 (12 U.S.C. 3311) is amended—(1)by striking appropriate Federal banking agency each place such term appears and inserting Federal financial institutions regulatory agency;(2)by striking appropriate Federal banking agencies and inserting Federal financial institutions regulatory agencies;(3)in subsection (a)—(A)by striking represented on the Council; and(B)by striking once every 10 years and inserting once every 8 years;(4)in subsection (b)—(A)by redesignating paragraphs (1) and (2) as subparagraphs (A) and (B), respectively (and adjusting the margins accordingly);(B)by striking In conducting and inserting the following:(1)Solicitation of public commentIn conducting; and(C)by adding at the end the following:(2)Internal review of cumulative impactEach 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—(A)assesses the effects of such regulations on consumers’ access to financial products and services;(B)assesses the effects of such regulations on the availability of financial products and services to financial and nonfinancial firms;(C)assesses the impact of such regulations on credit availability and financial market liquidity in United States financial markets;(D)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;(E)to the extent practicable, quantifies the direct and indirect economic costs imposed by such regulations; and(F)includes recommendations to streamline or eliminate duplicative, outdated, and unnecessarily burdensome regulations.;(5)in subsection (c)—(A)by striking subsection (b)(2) and inserting subsection (b)(1)(B), and the internal review under subsection (b)(2),; and(B)by striking once every 10 years and inserting once every 8 years;(6)in subsection (e)—(A)in paragraph (1), by striking and at the end;(B)by redesignating paragraph (2) as paragraph (3);(C)by inserting after paragraph (1) the following:(2)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; and(D)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(7)by adding at the end the following:(f)Federal financial institutions regulatory agency definedThe 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). .404.American Financial Institution Regulatory Sovereignty and Transparency(a)Annual reporting on interactions between Federal banking supervisory agencies and global financial regulatory or supervisory forums(1)Board of Governors of the Federal Reserve SystemThe seventh undesignated paragraph of section 10 of the Federal Reserve Act (12 U.S.C. 247) is amended—(A)by striking The Board and inserting the following:(7)Annual report(A)In generalThe Board;(B)by striking the second sentence; and(C)by adding at the end the following:(B)Interactions with global financial regulatory or supervisory forumsThe report required under subparagraph (A) shall include a description of the Board’s interactions with global financial regulatory or supervisory forums, including—(i)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;(ii)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;(iii)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(iv)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.(C)Global financial regulatory or supervisory forum defined(i)In generalIn 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—(I)the Bank for International Settlements;(II)the Basel Committee on Banking Supervision;(III)the Financial Stability Board;(IV)the International Association of Insurance Supervisors; and(V)the Network of Central Banks and Supervisors for Greening the Financial System.(ii)ExceptionThe term global financial regulatory or supervisory forum does not include—(I)international financial institutions, as defined in section 1701(c)(2) of the International Financial Institutions Act (22 U.S.C. 262r(c)(2)); or(II)any international organization with respect to which the Board participates pursuant to a treaty to which the United States is a party..(2)Office of the Comptroller of the Currency(A)In generalThe 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:333.Report of Comptroller(a)In generalThe Comptroller of the Currency shall make an annual report to Congress.(b)Interactions with global financial regulatory or supervisory forumsThe report required under subsection (a) shall include a description of the Comptroller’s interactions with global financial regulatory or supervisory forums, including—(1)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;(2)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(3)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(4)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.(c)Global financial regulatory or supervisory forum defined(1)In generalIn 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—(A)the Bank for International Settlements;(B)the Basel Committee on Banking Supervision;(C)the Financial Stability Board;(D)the International Association of Insurance Supervisors; and(E)the Network of Central Banks and Supervisors for Greening the Financial System.(2)ExceptionThe term global financial regulatory or supervisory forum does not include—(A)international financial institutions, as defined in section 1701(c)(2) of the International Financial Institutions Act (22 U.S.C. 262r(c)(2)); or(B)any international organization with respect to which the Comptroller participates pursuant to a treaty to which the United States is a party..(B)Technical correctionChapter nine of title VII of the Revised Statutes of the United States is amended—(i)by redesignating the first section 333 (12 U.S.C. 14a; relating to data standards) as section 332;(ii)by moving such section so as to appear after section 331; and(iii)in the table of contents of such chapter, by amending the item relating to section 332 to read as follows:332. Data standards; open data publication..(3)Federal Deposit Insurance CorporationSection 17(a) of the Federal Deposit Insurance Act (12 U.S.C. 1827(a)) is amended by striking paragraph (3) and inserting the following:(3)Interactions with global financial regulatory or supervisory forumsThe report required under paragraph (1) shall include a description of the Corporation’s interactions with global financial regulatory or supervisory forums, including—(A)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;(B)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;(C)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(D)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.(4)Global financial regulatory or supervisory forum defined(A)In generalIn 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—(i)the Bank for International Settlements;(ii)the Basel Committee on Banking Supervision;(iii)the Financial Stability Board;(iv)the International Association of Insurance Supervisors; and(v)the Network of Central Banks and Supervisors for Greening the Financial System.(B)ExceptionThe term global financial regulatory or supervisory forum does not include—(i)international financial institutions, as defined in section 1701(c)(2) of the International Financial Institutions Act (22 U.S.C. 262r(c)(2)); or(ii)any international organization with respect to which the Corporation participates pursuant to a treaty to which the United States is a party..(b)Biannual congressional testimony on interactions with global financial regulatory or supervisory forumsParagraph (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)).VStrengthening Local Bank Funding501.Bringing the Discount Window into the 21st CenturySection 10 of the Federal Reserve Act (12 U.S.C. 241 et seq.) is amended by inserting after paragraph (10) the following:(11)Review of discount window operations(A)In generalNot 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.(B)ContentsThe review required by subparagraph (A) shall include a consideration of—(i)the effectiveness of the discount window in providing liquidity to financial institutions, including in times of financial stress;(ii)whether the technology infrastructure, including means of communications, are sufficient to support the timely provision of liquidity, including in times of financial stress;(iii)the effectiveness of cybersecurity measures implemented with respect to discount window operations;(iv)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;(v)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;(vi)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;(vii)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;(viii)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—(I)help financial institutions better respond to rapid liquidity shortfalls; and(II)prevent broader financial instability; and(ix)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.(C)Remediation planAfter the Board of Governors completes the review required by subparagraph (A), the Board of Governors, in consultation with the Federal reserve banks, shall—(i)identify deficiencies with the discount window and areas for enhancing discount window effectiveness; and(ii)develop a written plan to remediate the identified deficiencies and implement the identified enhancements, which shall include—(I)an identification of actions that will be taken to enhance discount window effectiveness and remediate identified deficiencies;(II)timelines and milestones for implementing the plan and measures to demonstrate how the implemented improvements will be maintained on an ongoing basis; and(III)measures of managing and controlling any deficiencies and current operations until the plan is implemented in full.(D)Report to Congress on review and plan(i)In generalNot 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—(I)the findings of the review required by subparagraph (A); and(II)the remediation plan required by subparagraph (C).(ii)ConsultationBefore submitting the report required by clause (i), the Board of Governors shall—(I)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(II)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.(iii)TestimonyThe 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.(E)Annual reports to Congress(i)Reports by the BoardThe 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).(ii)Reports by the Inspector GeneralThe 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).(F)Confidential report informationAny report required under this paragraph may contain a confidential annex containing information that, if made public, could—(i)impact monetary policy, financial stability, or cybersecurity; or(ii)significantly endanger the safety and soundness of any financial institution.(G)RepealThis 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..502.Keeping Deposits Local(a)Amount of reciprocal deposits that are not considered To be funds obtained by or through a deposit brokerSection 29(i) of the Federal Deposit Insurance Act (12 U.S.C. 1831f(i)) is amended by striking paragraph (1) and inserting the following:(1)In generalThe 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:(A)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.(B)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.(C)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..(b)Definition of Agent InstitutionSection 29(i) of the Federal Deposit Insurance Act (12 U.S.C. 1831f(i)) is amended—(1)in paragraph (2)(A)—(A)in clause (i), by striking subclause (I) and inserting the following:(I)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;(B)by redesignating clauses (ii) and (iii) as clauses (iii) and (iv), respectively; and(C)by inserting after clause (i) the following:(ii)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;; and(2)by adding at the end the following:(3)Reservation of authorityIf 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..(c)Reciprocal deposits study(1)In generalThe Federal Deposit Insurance Corporation, in consultation with the Board of Governors of the Federal Reserve System, shall carry out a study on reciprocal deposits.(2)ContentsThe study required under paragraph (1) shall include—(A)an analysis of how reciprocal deposits have performed since 2018, which shall include—(i)the use of quantitative and qualitative data;(ii)a breakdown of the usage of reciprocal deposits by size of insured depository institution;(iii)the usage of reciprocal deposits during periods of stress; and(iv)an analysis, to the extent practicable, of end-user depositors, such as municipalities, businesses, and non-profit organizations, that drive demand for reciprocal products;(B)an analysis, to the extent practicable, of how reciprocal deposits compare to other deposit arrangements; and(C)an analysis of the benefits and potential risks of reciprocal deposits.(3)ReportNot 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).503.Community Bank Deposit Access(a)In generalSection 29 of the Federal Deposit Insurance Act (12 U.S.C. 1831f) is amended by adding at the end the following:(j)Limited exception for custodial deposits(1)In generalCustodial 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.(2)Reservation of authorityIf 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.(3)DefinitionsIn this subsection:(A)Custodial depositThe 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:(i)An insured depository institution serving as agent, trustee, or custodian.(ii)A trust entity controlled by an insured depository institution serving as agent, trustee, or custodian.(iii)A State-chartered trust company serving as agent, trustee, or custodian.(iv)A plan administrator or investment advisor, acting in a formal custodial or fiduciary capacity for the benefit of a plan.(B)Eligible institutionThe 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—(i)(I)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(II)is well capitalized;(ii)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(iii)has obtained a waiver pursuant to subsection (c).(C)PlanThe 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).(D)Plan administratorThe 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).(E)Well capitalizedThe term well capitalized has the meaning given the term in section 38(b)..(b)Interest rate restrictionSection 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:(k)Restriction on interest rate paid on certain custodial deposits(1)DefinitionsIn this subsection—(A)the terms custodial deposit, eligible institution, and well capitalized have the meanings given those terms in subsection (j); and(B)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.(2)ProhibitionA 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).(3)Limit on interest ratesThe limit on the rate of interest referred to in paragraph (2) shall be not greater than—(A)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(B)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..VIPromoting Bank Competition and Merger Clarity601.Bank Competition Modernization(a)In generalSection 18(c) of the Federal Deposit Insurance Act (12 U.S.C. 1828(c)), as amended by section 604(c), is further amended—(1)in paragraph (4)(C)—(A)in clause (i), by striking or at the end;(B)in clause (ii), by striking the period at the end and inserting ; or; and(C)by adding at the end the following:(iii)the proposed merger transaction would result in an entity with less than $10,000,000,000 in assets.; and (2)by adding at the end the following:(16)For merger transactions resulting in institutions with less than $10,000,000,000 in assets(A)In generalNotwithstanding 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—(i)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(ii)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.(B)Threshold adjustment(i)In generalAt 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—(I)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(II)the nominal gross domestic product of the United States for the covered year.(ii)Determination of GDPIn this paragraph, the Corporation shall use nominal gross domestic product statistics determined by the Bureau of Economic Analysis..(b)For bank holding companiesSection 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:(8)For proposed transactions resulting in companies with less than $10,000,000,000 in assets(A)In generalNotwithstanding 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—(i)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(ii)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.(B)Threshold adjustment(i)In generalAt 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—(I)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(II)the nominal gross domestic product of the United States for the covered year.(ii)Determination of GDPIn this paragraph, the Board shall use nominal gross domestic product statistics determined by the Bureau of Economic Analysis..(c)For savings and loan holding companiesSection 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:(10)For proposed transactions resulting in companies with less than $10,000,000,000 in assets(A)In generalNotwithstanding 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—(i)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(ii)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.(B)Threshold adjustment(i)In generalAt 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—(I)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(II)the nominal gross domestic product of the United States for the covered year.(ii)Determination of GDPIn this paragraph, the Board shall use nominal gross domestic product statistics determined by the Bureau of Economic Analysis..602.Merger Agreement Approvals Clarity and Predictability(a)StudyThe 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—(1)include an evaluation of relevant quantifiable metrics;(2)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;(3)consider the benefits and risks of utilizing different merger review approaches and procedures in compliance with the law; and(4)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.(b)ReportNot 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).(c)DefinitionsIn this section:(1)ApplicationThe term application means an application, notice, or other similar request for permission submitted to a Federal depository institution regulatory agency.(2)Federal depository institution regulatory agencyThe 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.(3)Insured depository institutionThe term insured depository institution—(A)has the meaning given that term in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813); and(B)means an insured credit union, as defined in section 101 of the Federal Credit Union Act (12 U.S.C. 1752).(4)Insured depository institution merger applicationThe 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—(A)section 10(e) of the Home Owners’ Loan Act (12 U.S.C. 1467a(e));(B)section 205(b) of the Federal Credit Union Act (12 U.S.C. 1785(b));(C)section 7(j) of the Federal Deposit Insurance Act (12 U.S.C. 1817(j));(D)section 18(c)(2) of the Federal Deposit Insurance Act (12 U.S.C. 1828(c)(2));(E)section 3 of the Bank Holding Company Act of 1956 (12 U.S.C. 1842); and(F)section 4 of the Bank Holding Company Act of 1956 (12 U.S.C. 1843).603.Merger Process Review(a)ReviewNot 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—(1)include an evaluation of relevant quantifiable metrics, including mean and median application processing times;(2)identify sources of delay that may hinder the timely consummation of proposals that meet the relevant statutory factors;(3)consider the benefits and risks of utilizing different merger review approaches and procedures in compliance with the law;(4)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(5)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.(b)ReportEach 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.(c)Agency responseIn 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.(d)DefinitionsIn this section:(1)ApplicationThe term application means an application, notice, or other similar request for permission submitted to a Federal depository institution regulatory agency.(2)Federal depository institution regulatory agencyThe 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.(3)Insured depository institutionThe term insured depository institution—(A)has the meaning given that term in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813); and(B)means an insured credit union, as defined in section 101 of the Federal Credit Union Act (12 U.S.C. 1752).(4)Insured depository institution merger applicationThe 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—(A)section 10(e) of the Home Owners’ Loan Act (12 U.S.C. 1467a(e));(B)section 205(b) of the Federal Credit Union Act (12 U.S.C. 1785(b));(C)section 7(j) of the Federal Deposit Insurance Act (12 U.S.C. 1817(j));(D)section 18(c)(2) of the Federal Deposit Insurance Act (12 U.S.C. 1828(c)(2));(E)section 3 of the Bank Holding Company Act of 1956 (12 U.S.C. 1842); and(F)section 4 of the Bank Holding Company Act of 1956 (12 U.S.C. 1843).604.Bank Failure Prevention(a)Bank holding companiesSection 3(b)(1) of the Bank Holding Company Act of 1956 (12 U.S.C. 1842(b)(1)) is amended—(1)by striking Upon receiving and inserting the following:(A)In generalUpon receiving;(2)by striking required and inserting acquired;(3)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(4)by adding at the end the following:(B)Complete record on an application(i)Notice to applicantNot 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—(I)confirms the record on the application is complete; or(II)details all additional information that is required for the record on that application to be complete.(ii)Extension of noticeNotwithstanding clause (i), the Board may, if an application is complex, extend the 30-day period described under clause (i) for an additional 30 days.(iii)Receipt of response; deeming of complete recordUpon 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—(I)determines that the applicant’s response was materially deficient; and(II)not later than 30 days after the date on which the Board received the response, provides the applicant a detailed notice describing the deficiencies.(iv)Treatment of third-party informationIn 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.(C)Deadline for determination(i)In generalNotwithstanding 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.(ii)Failure to make a determinationIf 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.(iii)Tolling of periodThe 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)..(b)Savings and loan holding companiesSection 10(e) of the Home Owners’ Loan Act (12 U.S.C. 1467a(e)) is amended—(1)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;(2)by redesignating paragraph (7) as paragraph (9); and(3)by inserting after paragraph (6) the following:(7)Complete record on an application(A)Notice to applicantNot 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—(i)confirms the record on the application is complete; or(ii)details all additional information that is required for the record on that application to be complete.(B)Extension of noticeNotwithstanding subparagraph (A), the Board may, if an application is complex, extend the 30-day period described under subparagraph (A) for an additional 30 days.(C)Receipt of response; deeming of complete recordUpon 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—(i)determines that the applicant’s response was materially deficient; and(ii)not later than 30 days after the date on which the Board received the response, provides the applicant a detailed notice describing the deficiencies.(D)Treatment of third-party informationIn 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.(8)Deadline for determination(A)In generalNotwithstanding 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.(B)Failure to make a determinationIf 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.(C)Tolling of periodThe 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)..(c)Insured depository institutionsSection 18(c) of the Federal Deposit Insurance Act (12 U.S.C. 1828(c)) is amended by adding at the end the following:(14)Complete record on an application(A)Notice to applicantNot 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—(i)confirms the record on the application is complete; or(ii)details all additional information that is required for the record on that application to be complete.(B)Extension of noticeNotwithstanding 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.(C)Receipt of response; deeming of complete recordUpon 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—(i)determines that the applicant’s response was materially deficient; and(ii)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.(D)Treatment of third-party informationIn 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.(15)Deadline for determination(A)In generalNotwithstanding 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.(B)Failure to make a determinationIf 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.(C)Tolling of periodThe 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)..VIIStrengthening Transparency and Involvement in Bank Resolutions701.Least Cost Exception(a)In generalSection 13(c)(4) of the Federal Deposit Insurance Act (12 U.S.C. 1823(c)(4)) is amended—(1)in subparagraph (A)(ii), by inserting except as provided in subparagraph (I), before the total amount;(2)in subparagraph (E)(i), by inserting and except as provided in subparagraph (I), after appropriate,; and(3)by adding at the end the following:(I)Least cost resolution exception(i)In generalWith 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—(I)the Corporation determines that the selected alternative complies with the requirements of clause (iii); and(II)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.(ii)Maximum cost to the Deposit Insurance FundNot 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).(iii)Requirements describedThe requirements for the selected alternative described in clause (i) are as follows:(I)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.(II)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).(III)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—(aa)made over a period to be determined by the Corporation, but which may not be less than 5 years; and(bb)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.(iv)Report to CongressNot 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.(v)Cost determinationsAll cost determinations required under this subparagraph shall be made in accordance with subparagraphs (B) and (C).(vi)DefinitionsIn this subparagraph:(I)Covered alternativeThe 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.(II)Global systemically important banking organizationThe 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..(b)Rule of constructionSection 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).702.Enhancing Bank Resolution Participation(a)StudyThe 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—(1)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;(2)the use by the Federal Deposit Insurance Corporation of the modified bidder qualification process;(3)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;(4)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;(5)with respect to such receiverships, the extent to which greater use of shelf charters and modified bidder qualification processes could have—(A)expanded the pool of participants in the acquisition of the assets or liabilities of such failed insured depository institutions;(B)resulted in greater competition and diversity in market outcomes;(C)protected the Deposit Insurance Fund; or(D)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;(6)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(7)any benefits and risks of private equity ownership of banks through the use of shelf charters and modified bidder qualification processes.(b)ReportNot 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—(1)all findings and determinations made in carrying out the study required under subsection (a); and(2)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.(c)DefinitionsIn this section:(1)Insured depository institutionThe term insured depository institution has the meaning given the term in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813).(2)Modified bidder qualification processThe 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.(3)Shelf charterThe 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 2017.703.Failing Bank Acquisition Fairness(a)Concentration limit exceptions only available to avoid serious adverse economic or financial effects(1)Concentration limits with respect to deposits(A)Federal Deposit Insurance ActThe Federal Deposit Insurance Act (12 U.S.C. 1811 et seq.) is amended—(i)in section 18(c)(13)—(I)by amending subparagraph (B) to read as follows:(B)Subparagraph (A) shall not apply to an interstate merger transaction if—(i)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(ii)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).; and(II)in subparagraph (C)—(aa)in clause (i), by striking and at the end;(bb)in clause (ii), by striking the period at the end and inserting a semicolon; and(cc)by adding at the end the following:(iii)the term qualified bid means an application, proposed application, or bid from a company where—(I)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(II)upon consummation of the transaction, the resulting insured depository institution is well capitalized;(iv)the term well capitalized—(I)with respect to an insured depository institution, has the meaning given such term in section 38(b) (12 U.S.C. 1831o(b));(II)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));(III)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(IV)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(v)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)).; and(ii)in section 44, by amending subsection (e) to read as follows:(e)Exception for Banks in Default or in Danger of Default(1)General exceptionThe 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—(A)the merger transaction involves 1 or more banks in default or in danger of default; or(B)the Corporation provides assistance under section 13(c) to facilitate such merger transaction. (2)Concentration limit exceptionThe responsible agency may, without regard to subsection (b)(2), approve an application under subsection (a)(1) for approval of a merger transaction if—(A)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(B)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).(3)Qualified bid definedIn this subsection, the term qualified bid has the meaning given that term in section 18(c)(13)(C)..(B)Bank Holding Company Act of 1956The Bank Holding Company Act of 1956 (12 U.S.C. 1841 et seq.) is amended—(i)in section 3(d), by amending paragraph (5) to read as follows:(5)Exception for banks in default or in danger of default(A)General exceptionThe Board may, without regard to subparagraph (B) or (D) of paragraph (1) or paragraph (3), approve an application pursuant to paragraph (1)(A) if—(i)the application is for an acquisition of 1 or more banks in default or in danger of default; or(ii)the application is for an acquisition with respect to which assistance is provided under section 13(c) of the Federal Deposit Insurance Act.(B)Concentration limit exceptionThe Board may, without regard to paragraph (2), approve an application pursuant to paragraph (1)(A) if—(i)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(ii)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).(C)Qualified bid definedIn this paragraph, the term qualified bid has the meaning given that term in section 18(c)(13)(C) of the Federal Deposit Insurance Act.; and(ii)in section 4(i)(8), by amending subparagraph (B) to read as follows:(B)ExceptionSubparagraph (A) shall not apply to an acquisition if—(i)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(ii)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). .(2)Concentration limit with respect to consolidated liabilitiesSection 14(c) of the Bank Holding Company Act of 1956 (12 U.S.C. 1852(c)) is amended—(A)by redesignating paragraphs (1), (2), and (3) as subparagraphs (A), (B), and (C), respectively;(B)by striking With the and inserting the following:(1)In generalWith the; and(C)by adding at the end the following:(2)LimitationThe 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)..(b)Congressional notification and justification for waivers(1)In generalWhenever 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)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;(B)a description of alternative bids or outcomes considered, including efforts to solicit and encourage bids from entities that would not require a waiver;(C)an explanation of why alternative bids were not selected, if applicable; and(D)any recommendations for legislative or regulatory changes to improve competition in future insured depository institution resolutions.(2)Public disclosureThe 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.(c)Limitation on considering bad faith bids in least cost determinationSection 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:(J)Limitation on considering bad faith bidsIn 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—(i)section 18(c)(13) or 44(b)(2); or(ii)section 3(d)(2), 4(i)(8), or 14 of the Bank Holding Company Act of 1956..704.Systemic Risk Authority Transparency(a)GAO reviewSection 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:(iv)GAO review(I)In generalThe 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—(aa)the basis for the determination;(bb)the purpose for which any action was taken pursuant to such clause;(cc)the likely effect of the determination and such action on the incentives and conduct of insured depository institutions and uninsured depositors;(dd)any mismanagement by the executives and board of the insured depository institution that contributed to the failure of the insured depository institution;(ee)a review of the compensation practices of the insured depository institution;(ff)any supervisory or regulatory shortcomings with respect to the appropriate Federal banking agency of the insured depository institution;(gg)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(hh)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.(II)Rule of constructionNothing 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..(b)Appropriate federal banking agency reportSection 13(c) of the Federal Deposit Insurance Act (12 U.S.C. 1823(c)) is amended by adding at the end the following:(12)Appropriate federal banking agency report(A)In generalThe 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:(i)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—(I)reports of examination and inspection that relate to the failed insured depository institution in the previous 3-year period;(II)formal communications of a material supervisory determination conveyed to the failed insured depository institution in the previous 3-year period; and(III)any additional exam reports and correspondence that the appropriate Federal banking agency determines may be relevant to the failure of the insured depository institution.(ii)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.(iii)Any supervisory or regulatory shortcomings by such appropriate Federal banking agency with respect to the insured depository institution.(iv)Any dynamics that the appropriate Federal banking agency determines may have contributed to the failure of the insured depository institution.(v)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.(B)Protection of sensitive information(i)Effect on privilegeThe provision of any information by a Federal banking agency under this paragraph may not be construed as—(I)waiving, destroying, or otherwise affecting any privilege applicable to the information; or(II)waiving any exemption applicable to the information under section 552 of title 5, United States Code (commonly known as the Freedom of Information Act).(ii)Transparency(I)In generalA Federal banking agency shall publish materials contained in a report required under subparagraph (A) to the fullest extent possible to promote transparency.(II)Consultation on omitting materialsIf 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.(III)Omitting materialsIf, 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.(iii)PrivilegeFor purposes of this subparagraph, the term privilege includes any work-product, attorney-client, or other privilege recognized under Federal or State law.(C)Report extensionA Federal banking agency may extend a deadline described under subparagraph (A) for an additional 60 days, if the Federal banking agency—(i)faces ongoing circumstances that require the Federal banking agency to prioritize activities to promote stability of the U.S. banking system; and(ii)notifies the Congress of such extension and the reasons for such extension.(D)Consolidated reportsA 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.(E)Rule of constructionNothing 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..VIIIFacilitating Innovation and Bank Partnerships801.Merchant Banking ModernizationSection 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.802.Bank-Fintech Partnership Enhancement(a)Study on bank-Fintech partnerships(1)StudyThe 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—(A)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(B)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.(2)ReportNot 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).(3)Banking organization definedIn 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).(b)Study on credit union-Fintech partnerships(1)StudyThe National Credit Union Administration shall carry out a study of—(A)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(B)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.(2)ReportNot 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).April 20, 2026Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed