New Hampshire Senate Bill SB85

New Hampshire 2025 Regular Session

• Introduced: 1/22/25
• Refer: 1/22/25
• Report Pass: 3/12/25
• Engrossed: 3/28/25
• Refer: 3/28/25
• Report Pass: 5/28/25
• Enrolled: 7/2/25
• Chaptered: 7/22/25
• Passed: 7/22/25

Caption

Relative to chartered bank lending limits.

Impact

If enacted, SB85 will affect existing state laws pertaining to banking operations, particularly those detailed in RSA 383-B. By adjusting the limits on what depository banks can lend, the bill seeks to align state regulations more closely with federal lending limits while also ensuring prudent lending practices are maintained. The proposed changes may lead to increased lending to individuals and businesses, which may foster economic growth, but could also raise concerns regarding risks associated with larger loans if not managed properly.

Summary

Senate Bill 85, known as the act relative to chartered bank lending limits, focuses on amending certain regulations governing the lending practices of depository banks. The primary provisions of the bill include raising the amount of money that a bank can loan to a single borrower and reducing the de novo status period for new banks. This legislative measure aims to enhance the lending capacity of banks, thereby potentially stimulating economic activity by allowing banks to finance larger loans under specific conditions.

Contention

Notably, the bill's introduction has generated discussions about the balance between enabling banks to engage in broader lending practices and ensuring the stability of the financial system. Critics may argue that loosening lending limits could increase the potential for over-leverage among borrowers and banks alike. Furthermore, the bill's provision regarding the shortened de novo status period for new banks may raise questions about the readiness and oversight required for new banking institutions, highlighting potential vulnerabilities in financial regulation.