Enhancing Bank Resolution Participation Act
Sponsors
Legislative Progress
ReportedMr. Huizenga introduced the following bill; which was referred to …
Summary
What This Bill Does
The Enhancing Bank Resolution Participation Act requires federal banking regulators to study whether better tools exist for handling bank failures. Specifically, it mandates the Comptroller of the Currency and FDIC to jointly examine "shelf charters" and "modified bidder qualification processes" - mechanisms that could allow non-bank investors and new players to participate in acquiring failed banks. This study directly responds to the 2023 bank failures (including Silicon Valley Bank, Signature Bank, and First Republic Bank).
Who Benefits and How
Private equity firms and non-bank investors may benefit if the study leads to regulatory changes that expand their ability to acquire failed banks. Currently, acquisitions of failed institutions are largely limited to existing chartered banks, which restricts competition. New entrants to the banking industry could also benefit from easier access to "shelf charters" - pre-approved bank charter applications that can be activated quickly when a bank fails. Taxpayers and the Deposit Insurance Fund could benefit if more bidders in bank auctions lead to better prices and less reliance on emergency taxpayer-funded backstops.
Who Bears the Burden and How
The Office of the Comptroller of the Currency (OCC) and FDIC must devote staff resources to conduct the study and prepare a report within 270 days. The Federal Reserve must be consulted, adding to their workload. Large incumbent banks that traditionally acquire failed institutions (like JPMorgan Chase, which acquired First Republic Bank) may face more competition in future bank failures if the study recommendations are implemented.
Key Provisions
- Mandates a joint OCC-FDIC study of shelf charters and modified bidder qualification processes used since 2008
- Specifically examines whether these tools could have improved outcomes in the 2023 bank failures
- Requires a report to Congress within 270 days identifying statutory and regulatory barriers
- Requires consultation with the Federal Reserve regarding Bank Holding Company Act implications
- Focuses on whether more bidders could have protected the Deposit Insurance Fund and reduced the need for Treasury emergency determinations
Evidence Chain:
This summary is derived from the structured analysis below. See "Detailed Analysis" for per-title beneficiaries/burden bearers with clause-level evidence links.
Primary Purpose
Requires the Comptroller of the Currency and FDIC to jointly study the use of shelf charters and modified bidder qualification processes in bank resolutions, particularly examining the 2023 bank failures.
Policy Domains
Legislative Strategy
"Examine whether existing regulatory tools (shelf charters and modified bidder processes) could have been used more effectively during the 2023 bank failures to reduce systemic risk and protect the Deposit Insurance Fund"
Likely Beneficiaries
- Private equity and non-bank investors seeking to acquire failed banks
- New market entrants in banking industry
- Deposit Insurance Fund (through potentially better resolution outcomes)
- Financial system stability
Likely Burden Bearers
- Office of the Comptroller of the Currency (study and report requirements)
- FDIC (study and report requirements)
- Traditional large banks (may face more competition in bank acquisitions)
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
- "the_board"
- → Board of Governors of the Federal Reserve System
- "the_secretary"
- → Secretary of the Treasury
- "the_comptroller"
- → Comptroller of the Currency (OCC)
- "the_corporation"
- → Federal Deposit Insurance Corporation (FDIC)
Key Definitions
Terms defined in this bill
Has the meaning given the term in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813)
Has the meaning given such term in the FDIC press release titled "FDIC Expands Bidder List for Troubled Institutions Plan Allows Those Without a Bank Charter to Participate in the Process" published November 26, 2008
Has the meaning given such term in the OCC report titled "Activities Permissible for National Banks and Federal Savings Associations, Cumulative" published October 2017
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