HR4544-119

What This Bill Does

This bill is aimed at making it easier to start new banks and credit unions. It requires federal financial institution regulators to review application forms for de novo regulated institutions, gather information from other federal agencies or public sources where practicable, and review capital-raising restrictions in consultation with the Securities and Exchange Commission. Each regulator must report annually for five years to the House Financial Services Committee and Senate Banking Committee and publish the report online.

The bill also requires regulators to assign caseworkers to de novo applicants that request help, create a voluntary mentor-protege list connecting new applicants with recently approved institutions, and develop stakeholder engagement plans with state banking and credit-union regulators, rural institutions, community development financial institutions, minority depository institutions, and recently approved regulated institutions. It defines the covered regulators and institutions and reduces the Federal Reserve surplus fund by $24 million effective September 1, 2036.

Who Benefits and How

De novo bank organizers benefit from simpler forms, fewer duplicative information requests, application tutorials, and a named caseworker at the regulator. De novo credit union organizers benefit from the same caseworker and mentor pathways for share-insurance and chartering processes. Rural bank organizers, community development financial institution organizers, and minority depository institution organizers benefit because regulators must consult stakeholders and consider reforms that support those categories of new institutions. Recently approved community banks and credit unions benefit from a formal way to volunteer as mentors. State banking regulators and state credit-union supervisors benefit from required federal consultation on cooperation and federal insurance questions.

Who Bears the Burden and How

Federal Deposit Insurance Corporation application staff, Federal Reserve bank application staff, Office of the Comptroller of the Currency chartering staff, and National Credit Union Administration chartering staff must review forms, assign caseworkers, prepare reports, publish information, maintain mentor lists, run workshops, and develop consultation plans. Securities and Exchange Commission investor-protection staff must participate in capital-raising review. Congressional banking committee staff must review annual agency reports and five-year engagement plans. The Federal Reserve surplus account bears the budget offset through a $24 million reduction in 2036.

Key Provisions

• Requires federal bank and credit union regulators to review and streamline de novo application forms.
• Directs regulators to reduce duplicative applicant information requests by using other federal sources where practicable.
• Requires consultation with the Securities and Exchange Commission on de novo capital-raising restrictions and investor protections.
• Requires application caseworkers for applicants that request a primary point of contact.
• Establishes voluntary mentor-protege information for applicants and recently approved institutions.
• Requires state and stakeholder engagement plans for rural institutions, community development financial institutions, and minority depository institutions.
• Reduces the Federal Reserve surplus fund by $24 million effective September 1, 2036.