Us Congress 2025-2026 Regular Session

Us Congress Senate Bill SB427 Compare Versions

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

Old	New	Differences
1	1	II
2	2	119THCONGRESS
3	3	1
4	4	STSESSION S. 427
5	5	To require the Federal financial institutions regulatory agencies to take risk
6	6	profiles and business models of institutions into account when taking
7	7	regulatory actions, and for other purposes.
8	8	IN THE SENATE OF THE UNITED STATES
9	9	FEBRUARY5, 2025
10	10	Mr. R
11	11	OUNDS(for himself, Mr. TILLIS, Mr. HAGERTY, Ms. LUMMIS, Mr.
12	12	C
13	13	RAMER, and Mr. DAINES) introduced the following bill; which was read
14	14	twice and referred to the Committee on Banking, Housing, and Urban
15	15	Affairs
16	16	A BILL
17	17	To require the Federal financial institutions regulatory agen-
18	18	cies to take risk profiles and business models of institu-
19	19	tions into account when taking regulatory actions, and
20	20	for other purposes.
21	21	Be it enacted by the Senate and House of Representa-1
22	22	tives of the United States of America in Congress assembled, 2
23	23	SECTION 1. SHORT TITLE. 3
24	24	This Act may be cited as the ‘‘Taking Account of In-4
25	25	stitutions with Low Operation Risk Act of 2025’’ or the 5
26	26	‘‘TAILOR Act of 2025’’. 6
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29	29	•S 427 IS
30	30	SEC. 2. TAILORING REGULATION TO BUSINESS MODEL AND 1
31	31	RISK. 2
32	32	(a) D
33	33	EFINITIONS.—In this section— 3
34	34	(1) the term ‘‘Federal financial institutions reg-4
35	35	ulatory agency’’ means the Office of the Comptroller 5
36	36	of the Currency, the Board of Governors of the Fed-6
37	37	eral Reserve System, the Federal Deposit Insurance 7
38	38	Corporation, the National Credit Union Administra-8
39	39	tion, and the Bureau of Consumer Financial Protec-9
40	40	tion; and 10
41	41	(2) the term ‘‘regulatory action’’— 11
42	42	(A) means any proposed, interim, or final 12
43	43	rule or regulation; and 13
44	44	(B) does not include any action taken by 14
45	45	a Federal financial institutions regulatory agen-15
46	46	cy that is solely applicable to an individual in-16
47	47	stitution, including an enforcement action or 17
48	48	order. 18
49	49	(b) C
50	50	ONSIDERATION AND TAILORING.—For any reg-19
51	51	ulatory action occurring after the date of enactment of 20
52	52	this Act, each Federal financial institutions regulatory 21
53	53	agency shall— 22
54	54	(1) take into consideration the risk profile and 23
55	55	business models of each type of institution or class 24
56	56	of institutions subject to the regulatory action; and 25
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59	59	•S 427 IS
60	60	(2) tailor the regulatory action applicable to an 1
61	61	institution, or type of institution, in a manner that 2
62	62	limits the regulatory impact, including cost, human 3
63	63	resource allocation, and other burdens, on the insti-4
64	64	tution or type of institution as is appropriate for the 5
65	65	risk profile and business model involved. 6
66	66	(c) F
67	67	ACTORSTOCONSIDER.—In carrying out the re-7
68	68	quirements of subsection (b), each Federal financial insti-8
69	69	tutions regulatory agency shall consider— 9
70	70	(1) the aggregate impact of all applicable regu-10
71	71	latory action on the ability of institutions to flexibly 11
72	72	serve their customers and local markets on and after 12
73	73	the date of enactment of this Act; 13
74	74	(2) the potential impact that efforts to imple-14
75	75	ment the regulatory action and third-party service 15
76	76	provider actions may work to undercut efforts to tai-16
77	77	lor the regulatory action described in subsection 17
78	78	(b)(2); and 18
79	79	(3) the statutory provision authorizing the reg-19
80	80	ulatory action, the congressional intent with respect 20
81	81	to the statutory provision, and the underlying policy 21
82	82	objectives of the regulatory action. 22
83	83	(d) N
84	84	OTICE OF PROPOSED AND FINALRULE-23
85	85	MAKING.—Each Federal financial institutions regulatory 24
86	86	agency shall disclose and document in every notice of pro-25
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89	89	•S 427 IS
90	90	posed rulemaking and in any final rulemaking for a regu-1
91	91	latory action how the agency has applied subsections (b) 2
92	92	and (c). 3
93	93	(e) R
94	94	EPORTS TOCONGRESS.— 4
95	95	(1) I
96	96	NDIVIDUAL AGENCY REPORTS .—Not later 5
97	97	than 1 year after the date of enactment of this Act 6
98	98	and annually thereafter, each Federal financial insti-7
99	99	tutions regulatory agency shall submit to the Com-8
100	100	mittee on Banking, Housing, and Urban Affairs of 9
101	101	the Senate and the Committee on Financial Services 10
102	102	of the House of Representatives a report on the spe-11
103	103	cific actions taken to tailor the regulatory actions of 12
104	104	the Federal financial institutions regulatory agency 13
105	105	pursuant to the requirements of this section. 14
106	106	(f) L
107	107	IMITEDLOOK-BACKAPPLICATION.— 15
108	108	(1) I
109	109	N GENERAL.—Each Federal financial insti-16
110	110	tutions regulatory agency shall— 17
111	111	(A) conduct a review of all regulations 18
112	112	issued in final form pursuant to statutes en-19
113	113	acted during the period beginning on the date 20
114	114	that is 7 years before the date on which this 21
115	115	Act is introduced in the Senate and ending on 22
116	116	the date of enactment of this Act; and 23
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119	119	•S 427 IS
120	120	(B) apply the requirements of this section 1
121	121	to the regulations described in subparagraph 2
122	122	(A). 3
123	123	(2) R
124	124	EVISION.—Any regulation revised under 4
125	125	paragraph (1) shall be revised not later than 3 years 5
126	126	after the date of enactment of this Act. 6
127	127	SEC. 3. SHORT-FORM CALL REPORTS FOR ALL BANKS ELI-7
128	128	GIBLE FOR THE COMMUNITY BANK LEVER-8
129	129	AGE RATIO. 9
130	130	The appropriate Federal banking agencies, as defined 10
131	131	in section 3 of the Federal Deposit Insurance Act (12 11
132	132	U.S.C. 1813), shall promulgate regulations establishing a 12
133	133	reduced reporting requirement for all banks eligible for the 13
134	134	Community Bank Leverage Ratio, as defined in section 14
135	135	201(a) of the Economic Growth, Regulatory Relief, and 15
136	136	Consumer Protection Act (12 U.S.C. 5371 note), when 16
137	137	making the first and third report of condition of a year 17
138	138	as required by section 7(a) of the Federal Deposit Insur-18
139	139	ance Act (12 U.S.C. 1817(a)). 19
140	140	SEC. 4. REPORT TO CONGRESS ON MODERNIZATION OF SU-20
141	141	PERVISION. 21
142	142	Not later than 18 months after the date of enactment 22
143	143	of this Act, the appropriate Federal banking agencies, as 23
144	144	defined in section 3 of the Federal Deposit Insurance Act 24
145	145	(12 U.S.C. 1813), in consultation with State bank super-25
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148	148	•S 427 IS
149	149	visors, shall submit to the Committee on Banking, Hous-1
150	150	ing, and Urban Affairs of the Senate and the Committee 2
151	151	on Financial Services of the House of Representatives a 3
152	152	report on the modernization of bank supervision, including 4
153	153	the following factors: 5
154	154	(1) Changing bank business models. 6
155	155	(2) Examiner workforce and training. 7
156	156	(3) The structure of supervisory activities with-8
157	157	in banking agencies. 9
158	158	(4) Improving bank-supervisor communication 10
159	159	and collaboration. 11
160	160	(5) The use of supervisory technology. 12
161	161	(6) Supervisory factors uniquely applicable to 13
162	162	community banks. 14
163	163	(7) Changes in statutes necessary to achieve 15
164	164	more effective supervision. 16
165	165	Æ
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