Small Bank Holding Company Relief Act
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
House resolution provisions
Identified Gains
- Bank holding company managers
- Savings and loan holding company managers
- Community bank shareholders
- Regional bank employees
- Local business borrowers
Identified Costs
- Federal Reserve Board
- Federal Reserve bank examiners
- Financial stability advocates
- Consumer advocacy organizations
- Banks above the $25 billion threshold
Sponsors
Legislative Progress
ReportedAdditional sponsors: Mr. Downing, Mr. Barr, Ms. De La Cruz, …
Reported with an amendment, committed to the Committee of the …
Placed on the Union Calendar, Calendar No. 165.
Reported (Amended) by the Committee on Financial Services. H. Rept. …
Committee Consideration and Mark-up Session Held
Ordered to be Reported (Amended) by the Yeas and Nays: …
Introduced in House
Referred to the House Committee on Financial Services.
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.
Bank holding companies below $25 billion, Community banks, Savings and loan holding companies below $25 billion
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
- "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