To require the appropriate Federal banking agencies to establish a 3-year phase-in period for de novo financial institutions to comply with Federal capital standards, to provide relief for de novo rural community banks, and for other purposes.
Analysis under review: This bill has generated analysis that may be too generic or incomplete. Clause-level evidence remains available below.
Summary
What This Bill Does
The bill creates congressional findings documenting the impact of bank closures on underserved communities, the slowdown in de novo bank formation since the financial crisis, Federal Reserve data showing 44 deeply affected, defines definitions establishing key terms for the Act including appropriate Federal banking agency, depository institution, depository institution holding company, Community Bank Leverage Ratio, financial institution, and requires mandate for federal banking agencies to issue rules providing a 3-year phase-in period for newly chartered financial institutions to meet Federal capital requirements, beginning from the date FDIC deposit. It relies on exemptions, compliance mandates, definition changes, and reporting requirements. The main policy areas are Finance and Agriculture.
Who Benefits and How
De novo financial institutions could face lower compliance burdens, De novo rural community banks under B in assets could face lower compliance burdens, and Federal savings associations (thrifts) could gain revenue opportunities.
Who Bears the Burden and How
Federal banking regulators would take on compliance duties and Federal banking regulators (OCC, FDIC, Federal Reserve) would take on compliance duties.
Key Provisions
- Creates congressional findings documenting the impact of bank closures on underserved communities, the slowdown in de novo bank formation since the financial crisis, Federal Reserve data showing 44 deeply affected...
- Defines definitions establishing key terms for the Act including appropriate Federal banking agency, depository institution, depository institution holding company, Community Bank Leverage Ratio, financial institution...
- Requires mandate for federal banking agencies to issue rules providing a 3-year phase-in period for newly chartered financial institutions to meet Federal capital requirements, beginning from the date FDIC deposit...
- Requires during the 3-year de novo period, financial institutions may request deviations from approved business plans.
- Sets the Community Bank Leverage Ratio at 8% for rural community banks during their first 3 years after obtaining FDIC deposit insurance, with a phase-in requiring banking agencies to set lower ratios during the first 2...
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
The bill creates congressional findings documenting the impact of bank closures on underserved communities, the slowdown in de novo bank formation since the financial crisis, Federal Reserve data showing 44 deeply affected, defines definitions establishing key terms for the Act including appropriate Federal banking agency, depository institution, depository institution holding company, Community Bank Leverage Ratio, financial institution, and requires mandate for federal banking agencies to issue rules providing a 3-year phase-in period for newly chartered financial institutions to meet Federal capital requirements, beginning from the date FDIC deposit.
Key Policy Areas
Finance, Agriculture
Primary Purpose
The bill creates congressional findings documenting the impact of bank closures on underserved communities, the slowdown in de novo bank formation since the financial crisis, Federal Reserve data showing 44 deeply affected, defines definitions establishing key terms for the Act including appropriate Federal banking agency, depository institution, depository institution holding company, Community Bank Leverage Ratio, financial institution, and requires mandate for federal banking agencies to issue rules providing a 3-year phase-in period for newly chartered financial institutions to meet Federal capital requirements, beginning from the date FDIC deposit.
Policy Domains
Sec. 4-5 -- Capital Standards Phase-In and Business Plan Flexibility
Identified Gains
- De novo financial institutions
- De novo rural community banks under B in assets
- Federal savings associations (thrifts)
- Agricultural borrowers
- Rural lending markets
Identified Costs
- Federal banking regulators
- Federal banking regulators (OCC, FDIC, Federal Reserve)
Legislative Progress
IntroducedMrs. Hyde-Smith introduced the following bill; which was read twice …
Stakeholder Effects
cui bono?How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.
De novo financial institutions, De novo rural community banks under B in assets, Financial institutions under billion in rural areas
Federal banking regulators, Federal banking regulators (OCC, FDIC, Federal Reserve)
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
- "appropriate_federal_banking_agencies"
- → OCC, FDIC, Federal Reserve
- "appropriate_federal_banking_agencies"
- → OCC, FDIC, Federal Reserve
- "appropriate_federal_banking_agencies"
- → OCC, FDIC, Federal Reserve
Key Definitions
Terms defined in this bill
As defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813).
As defined under section 201(a) of the Economic Growth, Regulatory Relief, and Consumer Protection Act.
A depository institution or depository institution holding company.
A financial institution with total consolidated assets less than billion, located in a rural area as defined in 12 CFR 1026.35(b)(2)(iv)(A).
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