Us Congress 2025-2026 Regular Session

Us Congress House Bill HB478 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	I
2	2	119THCONGRESS
3	3	1
4	4	STSESSION H. R. 478
5	5	To require the appropriate Federal banking agencies to establish a 3-year
6	6	phase-in period for de novo financial institutions to comply with Federal
7	7	capital standards, to provide relief for de novo rural community banks,
8	8	and for other purposes.
9	9	IN THE HOUSE OF REPRESENTATIVES
10	10	JANUARY16, 2025
11	11	Mr. B
12	12	ARRintroduced the following bill; which was referred to the Committee
13	13	on Financial Services
14	14	A BILL
15	15	To require the appropriate Federal banking agencies to es-
16	16	tablish a 3-year phase-in period for de novo financial
17	17	institutions to comply with Federal capital standards,
18	18	to provide relief for de novo rural community banks,
19	19	and for other purposes.
20	20	Be it enacted by the Senate and House of Representa-1
21	21	tives of the United States of America in Congress assembled, 2
22	22	SECTION 1. SHORT TITLE. 3
23	23	This Act may be cited as the ‘‘Promoting New Bank 4
24	24	Formation Act’’. 5
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27	27	•HR 478 IH
28	28	SEC. 2. PHASE-IN OF CAPITAL STANDARDS. 1
29	29	The Federal banking agencies shall issue rules that 2
30	30	provide for a 3-year phase-in period for a depository insti-3
31	31	tution or depository institution holding company to meet 4
32	32	any Federal capital requirements that would otherwise be 5
33	33	applicable to the depository institution or depository insti-6
34	34	tution holding company, beginning on— 7
35	35	(1) the date on which the depository institution 8
36	36	became an insured depository institution; or 9
37	37	(2) in the case of a depository institution hold-10
38	38	ing company, the date on which the depository insti-11
39	39	tution subsidiary of the depository institution hold-12
40	40	ing company became an insured depository institu-13
41	41	tion. 14
42	42	SEC. 3. CHANGES TO BUSINESS PLANS. 15
43	43	(a) I
44	44	NGENERAL.—During the 3-year period begin-16
45	45	ning on the date on which a depository institution became 17
46	46	an insured depository institution, the insured depository 18
47	47	institution or its depository institution holding company 19
48	48	may request to deviate from a business plan that has been 20
49	49	approved by the appropriate Federal banking agency by 21
50	50	submitting a request to such agency pursuant to this sec-22
51	51	tion. 23
52	52	(b) R
53	53	EVIEW OFCHANGES.—An appropriate Federal 24
54	54	banking agency shall, not later than the end of the 30- 25
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57	57	•HR 478 IH
58	58	day period beginning on the receipt of a request under 1
59	59	subsection (a)— 2
60	60	(1) approve, conditionally approve, or deny such 3
61	61	request; and 4
62	62	(2) notify the applicant of such decision and, if 5
63	63	the agency denies the request— 6
64	64	(A) provide the applicant with the reason 7
65	65	for such denial; and 8
66	66	(B) suggest changes to the request that, if 9
67	67	adopted, would allow the agency to approve 10
68	68	such request. 11
69	69	(c) R
70	70	ESULT OFFAILURETOACT.—If an appropriate 12
71	71	Federal banking agency fails to approve or deny a request 13
72	72	within the 30-day period required under subsection (b), 14
73	73	such request shall be deemed to be approved. 15
74	74	SEC. 4. RURAL COMMUNITY DEPOSITORY INSTITUTION LE-16
75	75	VERAGE RATIO. 17
76	76	(a) I
77	77	NGENERAL.—During the 3-year period begin-18
78	78	ning on the date on which a rural depository institution 19
79	79	became an insured depository institution, the Community 20
80	80	Bank Leverage Ratio for the rural community bank shall 21
81	81	be 8 percent. 22
82	82	(b) P
83	83	HASE-INAUTHORITY.—The Federal banking 23
84	84	agencies shall issue rules to phase-in the Community Bank 24
85	85	Leverage Ratio described under subsection (a) with re-25
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88	88	•HR 478 IH
89	89	spect to a rural depository institution by setting lower 1
90	90	Community Bank Leverage Ratio percentages during the 2
91	91	first 2 years of the 3-year period described under sub-3
92	92	section (a). 4
93	93	(c) D
94	94	EFINITIONS.—In this section: 5
95	95	(1) C
96	96	OMMUNITY BANK LEVERAGE RATIO .—The 6
97	97	term ‘‘Community Bank Leverage Ratio’’ has the 7
98	98	meaning given that term under section 201(a) of the 8
99	99	Economic Growth, Regulatory Relief, and Consumer 9
100	100	Protection Act (12 U.S.C. 5371 note). 10
101	101	(2) R
102	102	URAL DEPOSITORY INSTITUTION .—The 11
103	103	term ‘‘rural depository institution’’ means a deposi-12
104	104	tory institution— 13
105	105	(A) with total consolidated assets of less 14
106	106	than $10,000,000,000; and 15
107	107	(B) located in a rural area, as defined 16
108	108	under section 1026.35(b)(iv)(A) of title 12, 17
109	109	Code of Federal Regulations. 18
110	110	SEC. 5. AGRICULTURAL LOAN AUTHORITY FOR FEDERAL 19
111	111	SAVINGS ASSOCIATIONS. 20
112	112	Section 5(c) of the Home Owners’ Loan Act (12 21
113	113	U.S.C. 1464(c)) is amended— 22
114	114	(1) in paragraph (1), by adding at the end the 23
115	115	following: 24
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118	118	•HR 478 IH
119	119	‘‘(V) AGRICULTURAL LOANS .—Secured or 1
120	120	unsecured loans for agricultural purposes.’’; and 2
121	121	(2) in paragraph (2)(A), by striking ‘‘business, 3
122	122	or agricultural’’ and inserting ‘‘or business’’. 4
123	123	SEC. 6. STUDY ON DE NOVO INSURED DEPOSITORY INSTI-5
124	124	TUTIONS. 6
125	125	(a) S
126	126	TUDY.—The Federal banking agencies shall, 7
127	127	jointly, carry out a study on— 8
128	128	(1) the principal causes for the low number of 9
129	129	de novo insured depository institutions in the 10- 10
130	130	year period ending on the date of enactment of this 11
131	131	Act; and 12
132	132	(2) ways to promote more de novo insured de-13
133	133	pository institutions in areas currently underserved 14
134	134	by insured depository institutions. 15
135	135	(b) R
136	136	EPORT TOCONGRESS.—Not later than the end 16
137	137	of the 1-year period beginning on the date of enactment 17
138	138	of this Act, the Federal banking agencies shall, jointly, 18
139	139	issue a report to Congress containing all findings and de-19
140	140	terminations made in carrying out the study required 20
141	141	under subsection (a). 21
142	142	SEC. 7. DEFINITIONS. 22
143	143	In this Act, the terms ‘‘appropriate Federal banking 23
144	144	agency’’, ‘‘depository institution’’, ‘‘depository institution 24
145	145	holding company’’, ‘‘Federal banking agency’’, and ‘‘in-25
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148	148	•HR 478 IH
149	149	sured depository institution’’ have the meaning given those 1
150	150	terms, respectively, under section 3 of the Federal Deposit 2
151	151	Insurance Act. 3
152	152	Æ
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