II
119THCONGRESS
1
STSESSION S. 427
To require the Federal financial institutions regulatory agencies to take risk
profiles and business models of institutions into account when taking
regulatory actions, and for other purposes.
IN THE SENATE OF THE UNITED STATES
FEBRUARY5, 2025
Mr. R
OUNDS(for himself, Mr. TILLIS, Mr. HAGERTY, Ms. LUMMIS, Mr.
C
RAMER, and Mr. DAINES) introduced the following bill; which was read
twice and referred to the Committee on Banking, Housing, and Urban
Affairs
A BILL
To require the Federal financial institutions regulatory agen-
cies to take risk profiles and business models of institu-
tions into account when taking regulatory actions, and
for other purposes.
Be it enacted by the Senate and House of Representa-1
tives of the United States of America in Congress assembled, 2
SECTION 1. SHORT TITLE. 3
This Act may be cited as the ‘‘Taking Account of In-4
stitutions with Low Operation Risk Act of 2025’’ or the 5
‘‘TAILOR Act of 2025’’. 6
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SEC. 2. TAILORING REGULATION TO BUSINESS MODEL AND 1
RISK. 2
(a) D
EFINITIONS.—In this section— 3
(1) the term ‘‘Federal financial institutions reg-4
ulatory agency’’ means the Office of the Comptroller 5
of the Currency, the Board of Governors of the Fed-6
eral Reserve System, the Federal Deposit Insurance 7
Corporation, the National Credit Union Administra-8
tion, and the Bureau of Consumer Financial Protec-9
tion; and 10
(2) the term ‘‘regulatory action’’— 11
(A) means any proposed, interim, or final 12
rule or regulation; and 13
(B) does not include any action taken by 14
a Federal financial institutions regulatory agen-15
cy that is solely applicable to an individual in-16
stitution, including an enforcement action or 17
order. 18
(b) C
ONSIDERATION AND TAILORING.—For any reg-19
ulatory action occurring after the date of enactment of 20
this Act, each Federal financial institutions regulatory 21
agency shall— 22
(1) take into consideration the risk profile and 23
business models of each type of institution or class 24
of institutions subject to the regulatory action; and 25
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(2) tailor the regulatory action applicable to an 1
institution, or type of institution, in a manner that 2
limits the regulatory impact, including cost, human 3
resource allocation, and other burdens, on the insti-4
tution or type of institution as is appropriate for the 5
risk profile and business model involved. 6
(c) F
ACTORSTOCONSIDER.—In carrying out the re-7
quirements of subsection (b), each Federal financial insti-8
tutions regulatory agency shall consider— 9
(1) the aggregate impact of all applicable regu-10
latory action on the ability of institutions to flexibly 11
serve their customers and local markets on and after 12
the date of enactment of this Act; 13
(2) the potential impact that efforts to imple-14
ment the regulatory action and third-party service 15
provider actions may work to undercut efforts to tai-16
lor the regulatory action described in subsection 17
(b)(2); and 18
(3) the statutory provision authorizing the reg-19
ulatory action, the congressional intent with respect 20
to the statutory provision, and the underlying policy 21
objectives of the regulatory action. 22
(d) N
OTICE OF PROPOSED AND FINALRULE-23
MAKING.—Each Federal financial institutions regulatory 24
agency shall disclose and document in every notice of pro-25
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posed rulemaking and in any final rulemaking for a regu-1
latory action how the agency has applied subsections (b) 2
and (c). 3
(e) R
EPORTS TOCONGRESS.— 4
(1) I
NDIVIDUAL AGENCY REPORTS .—Not later 5
than 1 year after the date of enactment of this Act 6
and annually thereafter, each Federal financial insti-7
tutions regulatory agency shall submit to the Com-8
mittee on Banking, Housing, and Urban Affairs of 9
the Senate and the Committee on Financial Services 10
of the House of Representatives a report on the spe-11
cific actions taken to tailor the regulatory actions of 12
the Federal financial institutions regulatory agency 13
pursuant to the requirements of this section. 14
(f) L
IMITEDLOOK-BACKAPPLICATION.— 15
(1) I
N GENERAL.—Each Federal financial insti-16
tutions regulatory agency shall— 17
(A) conduct a review of all regulations 18
issued in final form pursuant to statutes en-19
acted during the period beginning on the date 20
that is 7 years before the date on which this 21
Act is introduced in the Senate and ending on 22
the date of enactment of this Act; and 23
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(B) apply the requirements of this section 1
to the regulations described in subparagraph 2
(A). 3
(2) R
EVISION.—Any regulation revised under 4
paragraph (1) shall be revised not later than 3 years 5
after the date of enactment of this Act. 6
SEC. 3. SHORT-FORM CALL REPORTS FOR ALL BANKS ELI-7
GIBLE FOR THE COMMUNITY BANK LEVER-8
AGE RATIO. 9
The appropriate Federal banking agencies, as defined 10
in section 3 of the Federal Deposit Insurance Act (12 11
U.S.C. 1813), shall promulgate regulations establishing a 12
reduced reporting requirement for all banks eligible for the 13
Community Bank Leverage Ratio, as defined in section 14
201(a) of the Economic Growth, Regulatory Relief, and 15
Consumer Protection Act (12 U.S.C. 5371 note), when 16
making the first and third report of condition of a year 17
as required by section 7(a) of the Federal Deposit Insur-18
ance Act (12 U.S.C. 1817(a)). 19
SEC. 4. REPORT TO CONGRESS ON MODERNIZATION OF SU-20
PERVISION. 21
Not later than 18 months after the date of enactment 22
of this Act, the appropriate Federal banking agencies, as 23
defined in section 3 of the Federal Deposit Insurance Act 24
(12 U.S.C. 1813), in consultation with State bank super-25
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visors, shall submit to the Committee on Banking, Hous-1
ing, and Urban Affairs of the Senate and the Committee 2
on Financial Services of the House of Representatives a 3
report on the modernization of bank supervision, including 4
the following factors: 5
(1) Changing bank business models. 6
(2) Examiner workforce and training. 7
(3) The structure of supervisory activities with-8
in banking agencies. 9
(4) Improving bank-supervisor communication 10
and collaboration. 11
(5) The use of supervisory technology. 12
(6) Supervisory factors uniquely applicable to 13
community banks. 14
(7) Changes in statutes necessary to achieve 15
more effective supervision. 16
Æ
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