HR2835-119

Reported

Small Bank Holding Company Relief Act

119th Congress Introduced Apr 10, 2025

Summary

What This Bill Does

The Small Bank Holding Company Relief Act directs the Board of Governors of the Federal Reserve System to revise appendix C to part 225 of title 12, Code of Federal Regulations, within 180 days. That appendix is the Small Bank Holding Company and Savings and Loan Holding Company Policy Statement. The bill raises the consolidated-asset threshold for both bank holding companies and savings and loan holding companies to $25 billion. Institutions below the threshold can use the policy statement's more flexible treatment for debt and capital at the holding-company level, which is especially relevant for acquisitions, ownership transitions, and capital planning.

Who Benefits and How

Bank holding companies with assets under $25 billion benefit because more institutions can qualify for the policy statement's reduced capital restrictions and more flexible debt-to-equity treatment. Savings and loan holding companies under $25 billion receive the same expanded eligibility. Community banks and regional banks benefit if their holding companies can finance acquisitions, shareholder redemptions, or restructuring with less regulatory friction. Bank shareholders and local borrowers may benefit indirectly if qualifying holding companies use the flexibility to preserve community-bank ownership, expand lending, or complete mergers.

Who Bears the Burden and How

The Federal Reserve Board must revise the regulation within 180 days and update supervisory expectations. Federal Reserve bank examiners must apply the higher threshold when reviewing holding-company debt, capital, and acquisitions. Financial stability advocates and consumer advocates may bear a policy burden because lighter holding-company treatment applies to larger institutions than before. Competitor banks above the $25 billion threshold do not receive the same relief and may face a changed competitive line.

Key Provisions

  • Amends the Small Bank Holding Company and Savings and Loan Holding Company Policy Statement threshold to $25 billion.
  • Expands eligibility for bank holding companies below the new consolidated-asset threshold.
  • Expands eligibility for savings and loan holding companies below the new consolidated-asset threshold.
  • Requires the Federal Reserve Board to complete the regulatory revision within 180 days after enactment.

Evidence Chain:

This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers with clause-level evidence links.

At a Glance

What This Bill Does

Requires the Federal Reserve Board to revise the Small Bank Holding Company and Savings and Loan Holding Company Policy Statement within 180 days so bank holding companies and savings and loan holding companies with consolidated assets up to $25 billion can qualify for the policy statement's more flexible capital and debt treatment.

Key Policy Areas

Banking, Financial Regulation, Small Business Finance

Primary Purpose

Requires the Federal Reserve Board to revise the Small Bank Holding Company and Savings and Loan Holding Company Policy Statement within 180 days so bank holding companies and savings and loan holding companies with consolidated assets up to $25 billion can qualify for the policy statement's more flexible capital and debt treatment.

Policy Domains

Banking Financial Regulation Small Business Finance

House resolution provisions

Identified Gains
  • Bank holding company managers
  • Savings and loan holding company managers
  • Community bank shareholders
  • Regional bank employees
  • Local business borrowers
Model: codex-gpt-5 | Version: bill_summary_v2 | Source: rh
Regional bank employees: ,
Local business borrowers: ,
Community bank shareholders: ,
Bank holding company managers: ,
Savings and loan holding company managers: ,
Identified Costs
  • Federal Reserve Board
  • Federal Reserve bank examiners
  • Financial stability advocates
  • Consumer advocacy organizations
  • Banks above the $25 billion threshold
Model: codex-gpt-5 | Version: bill_summary_v2 | Source: rh
Federal Reserve Board: ,
Financial stability advocates: ,
Federal Reserve bank examiners: ,
Consumer advocacy organizations: ,
Banks above the $25 billion threshold: ,

Legislative Progress

Reported
Introduced Committee Passed
Jul 15, 2025

Additional sponsors: Mr. Downing, Mr. Barr, Ms. De La Cruz, …

Jul 15, 2025

Reported with an amendment, committed to the Committee of the …

Jul 15, 2025

Placed on the Union Calendar, Calendar No. 165.

Jul 15, 2025

Reported (Amended) by the Committee on Financial Services. H. Rept. …

Jun 10, 2025

Committee Consideration and Mark-up Session Held

Jun 10, 2025

Ordered to be Reported (Amended) by the Yeas and Nays: …

Apr 10, 2025

Introduced in House

Apr 10, 2025

Referred to the House Committee on Financial Services.

Apr 10, 2025

Mr. Donalds (for himself, Mr. Haridopolos, and Mr. Lucas) introduced …

Stakeholder Effects

cui bono?

How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.

Financial Services
9 mentions across 3 clauses
+9 positive

Bank holding companies below $25 billion, Community banks, Savings and loan holding companies below $25 billion

Financial Regulators
3 mentions across 3 clauses
-3 negative

Federal Reserve Board

2/2
sections analyzed
Full impact breakdown

Bill Structure & Actor Mappings

Who is "The Secretary" in each section?

Domains
Banking Financial Regulation Small Business Finance
Actor Mappings
"board"
→ Board of Governors of the Federal Reserve System
"federal_reserve_banks"
→ Federal Reserve bank examiners

We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.

Learn more about our methodology